To properly calculate the overtime rate for a non-exempt employee, employers must first calculate the “regular rate of pay.”  Under federal law, and the laws of most states, the regular rate is determined by dividing the employee’s total weekly remuneration (except for a handful of categories that are specifically excluded, such as gifts and payments for non-working hours) by the total number of hours actually worked by the employee that week.  But certain states, including California, require a different calculation—one that, depending on the nature of the compensation, can only be divided by some, but not all, of the total hours worked in the week.