Have you ever wondered how to calculate overtime when a worker has 2 rates of pay? Well, today is the day you find out!
Here is a link to an easy breezy way to calculate overtime when a worker has two rates of pay. This is a calculator sponsored by the Texas Workforce Commission. Very reliable for most states. However, some states like California and Alaska have special overtime rules based on the 8+ hour day. In this case, please do not rely on this calculator, as it assumes you are following overtime rules for the 40 hour work week. Enjoy!
Until Next Time, Be Audit Secure!
Lisa Smith
What if my employee works an hourly rate during the week for 40hrs and then piece rate on the weekend?
March 1, 2017 at 4:46 pmGood Question Kathleen.
So use the same calculator. But, you will need to calculate the hourly rate for the piece work. Here is an example:
Let’s say your worker puts in 10 hours on the weekend and generates $100 in piece work. This translates into $10 per hour. You would plug in the rate of pay for the first 40 hours in pay rate #1 and use $10 for pay rate #2. If the piece rate earned is below the minimum wage in your state ( at least $7.25) then you must pay your worker the minimum wage for all hours worked on piece rate projects and then use that as rate #2.
Hope this helps!
March 2, 2017 at 9:39 amCan you put this into audit secure email so I can show it in class live!
February 28, 2017 at 1:11 pmYes Sir!
February 28, 2017 at 1:55 pm