Last week, Mary clocked 12 hours of program instruction, which, when added to her 30 hours a week as a lifeguard, means she is owed two hours of overtime pay. Overtime pay for the additional 10 hours should be calculated using the general minimum wage. The Fair Labor Standards Act (FLSA) requires that all of a worker’s hours, including hours worked at a different location, be counted toward when determining overtime pay. Divide the weighted average by two to arrive at the calculation rate for overtime. December 2011 in Compensation Vote Up 0 Vote Down. Whether your state mandates complex overtime laws or your industry demands it, the TSheets Pay Rate Engine can handle even your most advanced calculations. It can be found at 29 U.S.C. Hourly Employees with a Single Pay Rate Department of Labor regulations found at 29 C.F.R. We calculate Tania's overtime pay as follows: Joe’s weighted average regular rate is $30.91. You can have up to 8 different hourly rates for each employee. Their overtime pay rate would be $15.00 per hour ($10.00 x 1.5). for February 10 , 2014 Std rate 10€ and overtime rate 20€ Cost for February 11, 2014 std rate 20€ overtime rate 40€ Auto schedule activated. See, e ... straight-time hourly rate applying to each different kind of work that is being performed during the hours worked over 40 in the workweek. Once the employee’s regular rate of pay is calculated, his or her overtime rate can be calculated and applied to all hours over 40 per week. Published April 10, 2018. I. Overtime pay is 1 ½ times the employee’s regular pay rate, and is often referred to as “time and a half”. Calculating Overtime in General. Even if an employee is performing two different kinds of work with different pay rates, the hours must be combined for overtime pay purposes. To calculate overtime rates use our Pay Calculator. Multiply this total combines rate by the amount of overtime hours to get the additional overtime pay. That being rates of *1, *1.33 & *1.5. That is, the earnings from all hourly rates are added together and the total is then divided by the total number of hours worked at all jobs. The second method of calculating the regular rate for employees that earn different hourly rates in the same work period is found within the FLSA itself. Step 4: Add the straight-time and overtime together to get total compensation. That means that two employees with the same pay rate could work side-by-side from Monday through Friday and still end up with different overtime earnings. To calculate overtime rates use our Pay Calculator. We always encourage you to check your payroll system functionality to see if these calculations can be automated. But what happens, for instance, when an employee is paid at two or more different rates of pay in a single week? We have employees who will be working two different jobs at two different pay rates during the same work week. But her regular rate for overtime purposes is neither $9 nor $10 per hour. When there are two or more rates of pay, the regular rate for that workweek is the weighted average. $11 (higher pay rate) x ½ =$5.50 Step 3: Calculate the overtime compensation. With piece rate compensation, you can calculate overtime in two ways. Overtime for an employee, Tania, who works for 50 hours at $10 an hour for 10 hours and $20 an hour for 40 hours has worked 10 hours of overtime. (Remember, you’ve already paid straight rate for the overtime hours, so multiply the number of overtime hours by .5.) You can use the same pay type for any of your employees. Skip to the video. What Does the Law Say? Overtime is usually paid at a higher rate. The employee is then due additional overtime computed by multiplying the 5 overtime hours by one-half the regular rate of pay ($4.50 x 5 = $22.50). Employees have to be paid the right pay rate for all time worked, including time spent: training; in team meetings ; opening and closing the business; working unreasonable trial shifts. Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. The general rule is that all hours worked in all positions […] This means that an employee earning $20 an hour will earn $30 an hour for overtime. I'm not sure I'll explain this well, but I'll try my best: I currently have an Excel sheet that calculates the hours considered overtime, the pay rate, and the total regular pay and OT pay just fine. Our NYC overtime lawyer explains how to calculate overtime pay for two different rates of pay. You can have up to 8 different hourly rates for each employee. Step Three: Calculate the amount of overtime pay using the weighted average regular rate. overtime pay due must be computed on the basis of the average hourly rate derived from such earnings. Total pay including overtime hours and bonus: $600 + $225 + $200 = $1,025. Two Different Jobs . ($10 hourly rate x 10 hours) + ($20 hourly rate X 40 hours) = $900. Calculate overtime hourly pay rates given normal or standard pay rate. Sales & By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services They cannot work more than 8 hours per day or 40 hours per week. For more information, go to our page on Working hours. Hourly pay excluding overtime: $15 x 40 hours = $600. Overtime Pay May Not Be Waived: The overtime requirement may not be waived by agreement between the employer and employees. Generally, an employer pays overtime at 1.5 times the employee’s regular pay rate. All For most employers, the overtime calculation is very straightforward – employees receive one-and-a-half times their regular rate of pay for all hours worked over 40. The details about when overtime applies are different under each award and registered agreement. Mary agrees to work additional hours each week as a program instructor, for which she will be paid $10 per hour. If the employee works normal 8hrs then single rate *1 applies. Advanced overtime settings include: » Multiple pay rates by hours of the day » Overtime rates by week or pay period » Different pay rates on different days of the week » Preset holiday rates Specifically, overtime is normally calculated at 1.5 times an employee’s regular pay rate. Below we will go over some general formulas and examples for calculating overtime pay in three different categories of pay type; 1. hourly employees with a single pay rate 2. hourly employees with multiple pay rates 3. non-exempt salary employees. We can use a set of formulas to calculate the pay associated with workers working overtime. If an employee works at two or more different jobs in a single workweek, for which different non-overtime rates of pay have been established, his or her employer may use a weighted average to compute the employee’s regular rate. General Formula =(regular time*rate) + (overtime*rate*1.5) Formula. So, 12:00 PM is .5, 6:00 AM is .25, 6 PM is .75, and so on. You should only use another 7-day period if that's how your pay is calculated. Prefer a video tutorial? As you can see, the difference in these calculations results in a discrepancy of $20 between the two overtime pay rates. This is calculated by dividing the total pay for employment (except for the statutory exclusions noted above) in any workweek by the total number of hours actually worked. Overtime will be calculated using the highest job rate for hours worked. Step 3: Calculate overtime premium pay. According to the U.S. Department of Labor, when an employee (in a single workweek) performs 2 or more different types of work with different straight-time rates, the regular rate for that week is the weighted average of the pay rates. A way to avoid this calculation all together is to always pay overtime based on the highest rate of pay worked during the week. 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