Daily overtime premium checklist

Static educational checklist — not a calculator. No punch inputs, no 8-in-a-day / 40-in-a-week engines, no live 1½× premium math. Spot common FLSA § 7(e)(5) / 29 CFR § 778.202 daily (and weekly) excess-hours premium red flags: when extra pay for hours over eight in a day, over the applicable maximum workweek, or over the employee’s bona fide normal/regular hours may be excluded from the regular rate and credited toward statutory overtime; when below-1½× “daily OT,” artificial day splits, special-day / clock-pattern / shift-diff collapses, or lump-sum devices fail the test. Distinct from the holiday / Sunday / special-day (§ 778.203), shift-differential (§ 778.207 / § 778.206), stock-options (§ 7(e)(8)), and one-page premium-credit cheat-sheet pages.

Baseline — what a § 778.202 daily / weekly excess premium is (and is not)

Under 29 U.S.C. § 207(e)(5) and 29 CFR § 778.202, extra compensation provided by a premium rate for hours worked in excess of eight in a day, in excess of the maximum workweek applicable to the employee under § 7(a), or in excess of the employee’s normal working hours or regular working hours, may be treated as an overtime premium — excludable from the regular rate and, under § 7(h)(2) / § 778.201, creditable toward FLSA overtime — when the extra is actually contingent on those excess hours and is paid at not less than one and one-half times the rate established in good faith for like work performed during nonovertime hours. Artificial “straight time then overtime” splits of a normal day (devices to evade the Act) keep the higher rate inside the regular rate — see also § 778.501. § 778.202 is not a Sunday/holiday special-day premium (§ 778.203), not a clock-pattern outside-basic-day premium (§ 778.204), not an ordinary nightshift differential (§ 778.207), and not a lump-sum “bonus OT” that fails § 778.310. This page does not compute premiums — it only flags compliance red flags.

Checklist — daily / weekly excess-premium red flags

  1. Below-1½× “daily OT” premiums wrongly excluded from the regular rate. Flag payroll that strips a after-8 / after-normal-hours differential from the regular-rate numerator when the extra rate is less than time and one-half the bona fide nonovertime rate for like work. A +$2/hour “daily OT” or a 1.25× after-8 multiplier generally fails § 778.202 and stays in the regular rate.
  2. Artificial straight-time / OT splits of a normal day (§ 778.501). Flag contracts or punch rules that label the first N hours of a scheduled day as “straight” and the rest as “OT premium” even though the split is not actually contingent on hours in excess of eight, forty, or a bona fide normal schedule — a device to push part of the day’s pay out of the regular rate. Under § 778.501 / § 778.202, those higher-labeled hours stay inside the RR.
  3. Special-day (§ 778.203) labeled as daily OT (or the reverse). Flag handbooks that treat calendar-day Sunday / holiday / sixth-day premiums as interchangeable with clock-hour after-8 daily OT premiums. § 778.202 and § 778.203 are parallel tracks with different triggers; mislabeling either can put money in the wrong regular-rate / credit bucket.
  4. Clock-pattern (§ 778.204) / shift-diff (§ 778.207) collapsed into one “daily OT” code. Flag one-line “premium” codes that never separate (a) hours-after-8 daily OT, (b) true clock-pattern premiums for work outside a bona fide basic day/week at ≥1½×, and (c) ordinary evening / night shift differentials that must stay in the regular rate. Different CFR tracks; different inclusion / exclusion / credit answers.
  5. Vague “normal working hours” without a bona fide schedule. Flag policies that claim a § 778.202 exclusion for “hours over normal” when the employer never established a bona fide normal daily or weekly schedule in good faith — or when “normal” is redefined week-to-week to chase premium exclusions. The excess-over-normal path requires a real, established normal/regular schedule, not a floating label.
  6. Lump-sum “daily OT” that fails § 778.310. Flag flat daily / weekly “OT bonuses,” attendance OT lumps, or production OT lumps coded as § 778.202 premiums without meeting the true time-and-one-half excess-hours (or qualifying lump-sum) tests. A GL code that says “DAILY OT” is not a substitute for § 778.202 or § 778.310 analysis.
  7. Qualifying § 778.202 premium stuffed into the regular-rate numerator. Flag worksheets that fold true ≥1½× after-8 / after-40 / after-normal excess premiums into the FLSA regular rate when the payment actually meets § 778.202. A blanket “everything premium goes into RR” macro does not cure a qualifying § 7(e)(5) exclusion.
  8. Qualifying premium not credited toward statutory overtime due (§ 7(h)(2)). Flag settlement sheets that exclude a true § 778.202 excess premium from the regular rate but then refuse to credit that same extra compensation toward FLSA overtime owed for hours actually worked over 40. Under § 7(h)(2), extra compensation described in § 7(e)(5)–(7) is creditable toward overtime compensation — dropping the credit underpays.
  9. CA Labor Code § 510 / AWW / make-up overlays treated as automatic FLSA § 778.202 credits. Flag California daily 8/12 and seventh-day premiums, alternative-workweek schedules (Labor Code § 511), or make-up time (Labor Code § 513) being force-mapped into a federal § 778.202 exclusion/credit without checking whether the federal 1½× / excess-hours gates are actually met — and without keeping state OT floors separate from the FLSA regular-rate analysis.
  10. Belo / FWW / salary-basis stacking myths + stub/record gaps. Flag Belo (§ 7(f)) fixed-schedule plans, fluctuating-workweek half-time schemes, or salary-basis exempt labels used to “absorb” daily OT premiums without a § 778.202 analysis; wage statements that never separate qualifying daily excess premiums from special-day, clock-pattern, shift-diff, or true OT; missing bona fide rate / schedule documentation; and regular-rate worksheets that strip every “DAILY OT / AFTER 8 / AFTER 40” code without testing § 778.202. Record gaps turn every daily-premium dispute into a he-said / she-said § 7(e)(5) fight.

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Educational checklist only — not legal advice and not a daily-overtime / regular-rate calculator. Last updated 2026-09-08. Home · Cheat sheet · Holiday / special-day · Shift differential · StatutePay