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OT Pay?

edited January 2008 in Stupid Questions
This employee constantly calls me for the smallest and simplest questions, but this time, I had to take a moment to answer.

Let me give you a little bit of background; my manager believes that HR should carter ALL employees (from the general laborer to the owners) to the point that WE have to write THEIR name on THEIR employement application, and the list goes on and on... :?

Well, this employee sounds serious and I do take every call seriously; he asks: What is my OT rate, Jen?

Given that I take all calls seriously, I tell him to hold on a minute while I get the info for him-and at the same time I tell myself "wait a minute!" He should know this, everyone should know this. I get him off hold and I ask him, what is his reg. pay? He tells me his rate, and I tell him to times that by 1.5 and what he gets is his OT pay.
What got the most is that, aside from wasting my time, his response is "oh, ok" and hangs up. WHAT? no Thank you! :evil:
Like I am here to answer stupid questions :twisted:


  • Yes! I guess that's going to be his next question!
  • well, the answer might not be that simple. Any non-discretionary bonuses (production based, for example) would be included in the base (regular) rate of pay when calculating the OT premium.

    Say they earn $10/hr and work 40 hrs in a week. That gets them $400/week. Easy. Hourly rate = regular rate of pay.

    Now say they work 45 hours in a week. that's 40 hrs regular and 5 hrs OT. $400 regular plus $75 OT ($10/hr x 5 hrs x 1.5). OT rate is $15/hr. (Well, tecnically, it's 45 hrs x $10/hrs = $450 regular plus $10/hr x 5 hrs x 0.5 OT premium) = $25 OT.) The regular rate of pay is still $10/hr ($450 divided by 45 hrs)

    Now complicate it by saying on top of that $475 they earned that week, they hit a production goal and earned a $100 bonus. The regular rate of pay is now $12.77/hr instead of $10/hr. ($575/week divided by 45 hours = $12.78/hr). OT would then be paid at $19.17/hr ($12.78/hr x 1.5) instead of the original $15/hr.

    At my previous employer, we had monthly and quarterly non-discretionary bonuses. When the bonus amounts came out, we had to go back and see how many OT hours they had during that period and add the extra bit of OT premium that was due to them.

    This is an often-overlooked part of the FLSA's definition of Rate of Pay. We weren't aware of it until one of our employees filed a claim with their state's DOL.
  • Where specifically can I find the FLSA definition of Rate of Pay? I went on the website but wasn't able to locate it.

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