How does it work when a non-exempt employee works 2 very different jobs for 1 employer? Say an employee has a primary job that they log 40 hours with and picks up shifts for a position that normally pays 1/3 their regular rate- do they get paid OT for 1.5 times their regular rate? Is there a way to pay less for the other job?

tia

Overtime calculation is a function of federal law (FLSA) and the federal DOL has a formal rule that covers this. This rule actually works for all versions of overtime calculation but people have gotten used to using a very simplified version of the rule that only works for very simple situations. I am going to use an example:

For the current workweek Bob does the following:
- Works 25 hours @ $10/hr.
- Works 25 hours @ $12/hr.
- Gets a $100 non-discretionary bonus payment.
- Assuming that my math is working today, Bob before the OT premium has just earned $250 + $300 + $100 = $650.
- Bob worked 50 hours.
- The Regular Rate of Pay (RRP) for this workweek is $13/hr.
- In addition to the $650 of base pay Bob is owed a 50% premium against RRP for all hours worked past 40 in the workweek. The calculates as 10 hours times $13/hr times 50% equals $65.
- Total payment due is $650 + $65 = $715.

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I am including a ZIP of an Excel worksheet that can be useful in complicated OT calculations.

The default is to use the weighted average rate of pay, but it is allowed by federal law for the overtime to be paid based upon the rate of pay in effect at the time the work is done.

The catch is that the employee must be informed of this in advance.

Depending upon when the different rates are worked during the work week, this may work to the advantage of the employee or to the employee's disadvantage.

It certainly makes payroll processing for us a lot faster.

[QUOTE=ScottB;979681]The default is to use the weighted average rate of pay, but it is allowed by federal law for the overtime to be paid based upon the rate of pay in effect at the time the work is done.

The catch is that the employee must be informed of this in advance.
QUOTE]

So if they work 40 hours at $30 and all the OT is for the job that pays $10 and the employee agrees to be paid at the OT rate for $10, it's ok to pay them at that rate?

[QUOTE=ScottB;979681]The default is to use the weighted average rate of pay, but it is allowed by federal law for the overtime to be paid based upon the rate of pay in effect at the time the work is done.

The catch is that the employee must be informed of this in advance.
QUOTE]

So if they work 40 hours at $30 and all the OT is for the job that pays $10 and the employee agrees to be paid at the OT rate for $10, it's ok to pay them at that rate?

Yes, subject to the following:
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_778/29CFR778.400.htm

Agreed, but this is one of those "read the fine print" type of rules. Specifically:

... Provided, That the rate so established shall be authorized by regulation by the Secretary of Labor as being substantially equivalent to the average hourly earnings of the employee, exclusive of overtime premiums, in the particular work over a representative period of time ...

Agreed, but this is one of those "read the fine print" type of rules. Specifically:

... Provided, That the rate so established shall be authorized by regulation by the Secretary of Labor as being substantially equivalent to the average hourly earnings of the employee, exclusive of overtime premiums, in the particular work over a representative period of time ...


I hate fine print. I'm getting too old to read it. :rolleyes: