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Doug Delp

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  • The sample Weekly Time Record (top) shows hours worked for an employee who is paid at different rates for different types of work. Weekly pay, including overtime based on $14 per hour, would be $776. But this does not comply with the Fair Labor Standards Act, which gives employers two options for figuring overtime in this situation: 1) Determine an average hourly pay rate for the week ($15.25 in “Weighted Average” example above), then calculate overtime pay based on that amount; or 2) use an overtime rate based on the pay rate for each type of work. Both options increase the employee’s weekly pay by about $18.
    Business

    by Doug Delp

    When employees are paid different wage rates for different types of work, figuring overtime pay gets complicated. In this article, HR consultant Doug Delp explains employer options under the Fair Labor Standards Act.

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