Common use of Computation of Different rates of Pay for Overtime Clause in Contracts

Computation of Different rates of Pay for Overtime. In the event an employee works in more than one category of position with different rates of pay, overtime will be calculated as per the following example (weighted average method) Example: An employee works 25 hours in one week at $8.00 per hour, and an additional 20 hours during the same week at $11.50 per hour. 25 x $ 8.00 = $200.00 20 x $11.50 = $230.00 45 hours = $430.00 The total dollars earned that week will be divided by the total number of hours worked during that week ($430/45hours). The average hourly rate will then be multiplied by the number of hours work over forty (40) for that week then multiplied by .5 to determine the amount of overtime pay. For example: ($9.56 x 5)*.5 = $23.90 The total pay for 45 hours would be: 45 hours at straight time = $430.00 5 hours at premium = $ 23.90 Total salary = $453.90

Computation of Different rates of Pay for Overtime. In the event an employee works in more than one category of position with different rates of pay, overtime will be calculated as per the following example (weighted average method) Example: An employee works 25 hours in one week at $8.00 per hour, and an additional 20 hours during the same week at $11.50 per hour. 25 x $ 8.00 = $200.00 20 x $11.50 = $230.00 45 hours = $430.00 The total dollars earned that week will be divided by the total number of hours worked during that week ($430/45hours). The average hourly rate will then be multiplied by the number of hours work over forty (40) for that week then multiplied by .5 to determine the amount of overtime pay. For example: ($9.56 x 5)*.5 = $23.90 The total pay for 45 hours would be: 45 hours at straight time = $430.00 5 hours at premium = $ 23.90 Total salary = $453.90