OVERTIME

dholder369

If an employee is working at a position for 40 hrs a week and takes another part time position at a lesser rate of pay in addition to the first position, how do we figure overtime pay?

thank
Debbie

LarryC

Hi Debbie. First of all you are correct in assuming that you have to pay overtime in this situation. Regardless of how many jobs or pays this person gets, if they work over 40 hours, period, they are entitled to overtime.

Now what to pay? You calculate the overtime based on a weighted average of the two wages that will give you a wage from which to multiply times one and a half.

Example: The employee works 40 hours at $10 per hour and the part time position 5 hours at $8 per hour. The "wage" from which you will figure overtime = [(40 X 10)+ (5 X 8)]/ 45 = $9.78

You are also allowed to enter into an agreement with your employee that the overtime will be calculated using the rate of pay for the type of work the employee is doing during the overtime hours. Make sure it's in writing and signed.

David Nagle VA

Larry's reply is right on the money. The only additional note I would offer is that the DOL is very suspicious of agreements of the sort that Larry described. For example, knowing that they will be paying time and one-half rate for the part-time position, some employers assign the individual an artificially low rate, so that the "overtime" rate works out to the rate normally assigned to the job. Such an approach would be deemed "a scheme to avoid compliance with the FLSA" and would be unlawful. The weighted average approach Larry described, where the person gets one and one-half that for all hours over 40 in a workweek, is the best approach.

David E. Nagle
Editor, Virginia Employment Law Letter

POPEYE

Your payroll staff will love you if you don't allow this!!!!!!