Full timer Working Part Time

Rockie

We have a full time employee who would like to work part time for us on the weekends. Of course, the CFO told the supervisor we would not have to pay overtime if they worked a different pay scale.

I know we do have to pay them overtime. My question is: If they are working 40 hours at 14.00/hour and they want to work 8 hours on Saturday at 10.00/hour -what do you base the time and a half on - the $10.00/hour? Just want to make sure we don't run into any snags here.

sandra_d

No - you have to pay overtime based upon the average hourly wage. The average hourly wage would be $13.33 per hour - the overtime rate would then be $20 per hour (40 hrs x $14 + 8 hrs x $10 = $640 / 48 hrs = $13.33). Nothing prohibits you from paying more than you have to, so if you want to avoid doing the hourly wage calculation each pay period, you could pay OT based upon the $14 wage, but again, you'd be paying more than you'd need to.