Overtime pay

This depends on whether the employee is paid by the hour or by a weekly, monthly or yearly salary.

• Pay by the hour
• Pay by salary
• What is a “work week”?
• File a claim

Hourly pay If the employee is paid by the hour, the overtime rate is 1½ times the hourly rate. Therefore, an employee who is paid $ 8 per hour should receive $ 12 per hour for each hour worked for 40 hours per week. An employee who receives $ 9 per hour should receive $ 13.50 per hour for each hour worked for 40 hours per week.

Pay by salary Calculating overtime rates can be more difficult if your employee is paid. First, calculate the employee’s “regular pay rate”. Divide the employee’s weekly salary by the number of hours worked in a week. The number you get will be equal to the employee’s “regular pay rate.”

Then the employee must receive 1 ½ times that “regular rate” for each hour worked for more than 40 hours a week. For example, if the employee’s weekly wage is $ 1,000 and he generally works 40 hours a week, then the “regular rate of pay” is $ 25 per hour. 1 ½ times $ 25 is $ 37.50, so the employee must receive an additional $ 37.50 for each hour worked during 40 hours.

What is a “work week”? A “work week” is seven days in a row that you set as a work week. You can say that the work week runs from Tuesday through next Monday, or you can say that the work week runs from Friday through next Thursday. But you probably can’t shake up the scheduled “work week” just to avoid paying employees overtime.

Most work weeks run from Sunday to Saturday, just like normal weeks. Therefore, an employee who works more than 40 hours between 12 a.m. M. Sunday and 11:59 p.m. M. The following Saturday should probably get overtime for all hours over 40 during that week.