How to compute overtime in unusual situations

With the new white-collar overtime rules going into effect Dec. 1, now is a good time to review the OT basics. If an employee earns a fixed hourly rate with no other compensation, computing base pay and overtime pay 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 total hours of work.

Different rates in the same week: Divide total earnings for the week by the 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. Divide by the number of hours worked 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 receives no other compensation, total all sums received in the workweek. Then divide by the total hours worked.

Salaried workers whose pay covers more than a workweek: You can convert a monthly salary to its equivalent weekly wage by multiplying the salary by 12 months and dividing it by 52 weeks.

Overtime Issues D

Fixed salary for fluctuating hours by agreement with employee: Divide the salary by the number of hours worked in that week. Because you already paid straight time, the employee must receive additional pay for each overtime hour worked that week, at not less than one-half the regular rate.