Monthly Archives: July 2011

How To Figure Overtime Pay When a Worker Has Two Rates of Pay

Generally, for nonexempt employees, the Fair Labor Standards Act (FLSA) requires overtime pay at a rate of not less than one and one-half times an employee’s regular rate of pay after 40 hours of work in a workweek. This is pretty easy to calculate when a worker receives the same rate of pay for all work, but what do you do when a worker has two rates of pay? Or is paid a portion of pay is hourly per hours worked and a portion of pay is piece work?

Keep in mind, the overtime requirement is based on the workweek as is the overtime premium calculation and will likely change each pay period. Also remember that straight time pay can not be less than minimum wage.

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Posted in Payroll