Archive for 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?