Question: I have an exempt hourly employee, Joe, who works two different jobs for us. How do I determine the correct way to pay him overtime?
Typically Joe works:
40 hours at his $10 an hour job and 10 hours at his $20 an hour job.
What amount do you think should be included in Joe’s paycheck at the end of the week?
Answer: In order to properly figure out overtime, we need to calculate Joe’s regular rate of pay for the week. The regular rate is a weighted average based on the pay and the hours worked.
(40 hours) x ($10 per hour) = $400
(10 hours) x ($20 per hour) = $200
Total Straight Time Pay = $600
Regular Rate = (Total pay) ÷ (Total hours)
Regular Rate = 600 ÷ 50 = $12 per hour
Overtime Pay = One Half Regular Rate x Overtime Hours Worked
(since you already paid the straight time)
Overtime Pay = One Half of $12 = $6
Overtime Pay = $6 x 10 Hours = $60
Total Pay Due: $600 + $60 = $660
Dave Wilson has spent over two decades litigating wage and hour, employment, real estate, maritime, and general commercial disputes in the state and federal courts of Massachusetts and New Hampshire. Dave spends a significant amount of his time acting as a business partner with his clients, counseling and training them in all areas of employment relations law. Please visit the Hirsch Roberts Weinstein LLP website for more information.