Common use of Cash Payment for Overtime Worked Clause in Contracts

Cash Payment for Overtime Worked. 1. The basic compensation for an Employee who performs overtime work shall include all differentials an Employee is receiving when performing overtime work, except for hazard pay differentials. To convert an Employee's basic compensation to an hourly rate, the following formula shall be used: (monthly salary plus the amount of monthly differentials) multiplied by 12 months then divided by 2,080 hours; plus any hourly differentials the Employee is earning. 2. Cash payment for overtime work shall be calculated as follows: (basic rate of pay plus differentials as determined in I.1.) multiplied by the number of hours worked or fraction thereof computed to the nearest fifteen