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FLSA: Overtime and Base-Rate Pay

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in Employment Law,Human Resources

You must pay overtime to nonexempt employees who work more than 40 hours in a single workweek. The overtime rate is one and a half times an employee’s hourly rate. If an employee earns a fixed hourly rate with no other compensation, computing the base rate is easy. But in many cases, it’s not so simple:

Fixed hourly rate plus other pay: Divide the employee’s total earnings for the week (hourly wages plus bonus, for example) by his total hours of work.

Different rates in the same week: Divide total earnings for the week by the employee’s total number of hours worked. 

Pieceworkers: Add the total earnings for the workweek (including bonuses) and any sums paid for waiting time or other hours worked. Then divide the sum by the number of hours worked in that week. 

Workers on day rates or job rates: When you pay an employee a flat sum for a day’s work or for doing a particular job (regardless of the number of hours) and he or ...(register to read more)

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