Employment – Overtime Rate of Pay
Q= What is “Overtime Rate of Pay?”
A= “Overtime Rate of Pay” is the rate at which an employer should pay his employee for the hours the employee worked over 8 hours a day or 40 hours a week. Hours in excess of 8 hours per day or 40 hours per week are required to be paid at the rate of one and a half times the base rate of pay. If an employee works 12 hours or more a day, the employer is required to pay at twice the base rate for the hours in excess of 12. Also, if an employee works without a day off on a 7-day work schedule, the employer must pay at one and a half times the base rate for the first 8 hours of the 7th day and at twice the base rate for hours worked in excess of 8 on the 7th day. Refer to the following tables for overtime pay calculation examples.
*By law, employers are responsible for keeping records of employee’s working hours.
Table 1: A Typical Regular Weekly Timesheet
Table 2: A Variation of Regular Weekly Timesheet
Table 3: A Weekly Timesheet with Overtime Hours
Table 4: Overtime Calculation
|Rate of Pay||$10||1.5 X $10||2 X $10||–|
Tables 1 and 2 are examples of an employee’s working hours that are not subject to overtime rate of pay, whereas Table 3 is an example of an employee’s schedule that qualifies for overtime rate of pay. According to Table 3, the employee had overtime of 4 and 5 hours on Tuesday and Wednesday, respectively. The first 4 overtime hours each day are subject to a rate of one and a half times the base rate of pay. Hours in excess of the first 4 accrued overtime hours are subject to twice the base rate of pay. Hence for Wednesday, the employee must be paid at twice the base rate of pay for the 13th hour he or she worked.
Besides 9 combined overtime hours from Tuesday and Wednesday, the employee accrued 42 hours in a working week according to the table. The first 40 hours are paid at a regular rate; however, the last two hours must be paid at a rate of one and a half times the base rate. In total, as shown in Table 4, the employee had 10 hours subject to a rate of one and a half times the base rate and 1 hour subject to a rate of twice the base rate.
Please be advised to speak with an attorney for it is often complicated to compute overtime rate of pay due to its complexity.
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