If the collective bargaining agreement rate prevails, how does a contractor know what the “prevailing hours of labor” are so they can pay overtime appropriately?
Generally speaking, overtime calculation is not affected by whether or not a collective bargaining agreement rate prevails. If an employee works in excess of 10 hours on a prevailing wage project Monday through Friday, or works on Saturday or Sunday, or works on various designated national holidays, the employer must pay the employee the total of (the Hourly Basic Rate listed on the prevailing wage rate determination) X 1.5 + (the Hourly Fringe Benefit listed on the prevailing wage rate determination) + (any applicable “Future Increase” listed on the prevailing wage rate determination) + (any “Premium” listed on the prevailing wage rate determination). For overtime worked in excess of 40 hours in a week, an employer must use the “blended rate” method for calculation, unless the employer has an already established “where worked” method.
Related Questions
- What wage rate does a contractor pay an employee who works, for example, as a Computer Operator I for three hours and a Peripheral Equipment Operator for five hours?
- Is there any differences in Teamster pay rates or guarantees between the Regular Collective Bargaining Agreement and a Project Contract?
- What if a contractor is subject to a collective bargaining agreement?
