How do I compute the overtime rate for a worker who has two or more job titles with different hourly rates?
A. The overtime rate is calculated by using the weighted averaged method. The total gross wage is divided by the total number of hours worked to obtain the average hourly rate. The average hourly rate is then divided in half to determine the additional premium (half-time) rate due the employee. Example: An employee does clerical work for $10.00 per hour and is also a hostess for $7.75 per hour. The employee works 30 hours at $10.00 per hour and 16 hours at $7.75 per hour for a total of 46 hours during the week. The overtime rate due the employee is calculated as follows: 30 hours x $10.00 per hour = $300.00 16 hours x $7.75 per hour = $124.00 Total gross = $424.00 The total gross ($424.00) is divided by the total hours (46) to obtain the average hourly rate. The average hourly rate is $9.22 per hour. The employee is still due the additional premium pay (half-time) for the 6 overtime hours. The average hourly rate ($9.22) is divided in half. The half-time rate is $4.61. 6 overtime hours
Related Questions
- If a worker receives different hourly rates during the course of a day because he is performing different tasks, what overtime rate is paid when overtime pay is required?
- How does an employer compute the overtime rate for a worker who has two or more job titles with different hourly rates?
- How do I compute the overtime rate for a worker who has two or more job titles with different hourly rates?
