As an employee who works at multiple rates of pay in a single workweek, it is important to understand how overtime pay is calculated. In Massachusetts, the calculation of overtime pay can be complex for employees who work at multiple rates of pay in a single workweek. This article will explain how overtime pay is calculated in such situations.
What is Overtime Pay? Overtime pay is the additional compensation an employer pays to an employee for working beyond the standard workweek or workday. In Massachusetts, the standard workweek is 40 hours, and the standard workday is eight hours. Overtime pay is typically one and a half times the employee’s regular pay rate.
How is Overtime Calculated for Employees with Multiple Rates of Pay in a Single Workweek? If an employee works at multiple rates of pay in a single workweek, the employer must calculate the employee’s regular rate of pay before calculating overtime pay. To do this, the employer must divide the employee’s total earnings for the workweek by the total number of hours worked in the workweek, including any overtime hours.
Once the employee’s regular rate of pay is determined, the employer must calculate overtime pay based on one and a half times the employee’s regular rate of pay for any hours worked over 40 in the workweek. If the employee worked any overtime hours at the higher rate of pay, the employer must use the higher rate of pay to calculate the overtime pay.
Example Calculation: Suppose an employee works 45 hours in a single workweek, with 25 hours worked at a rate of $15 per hour and 20 hours worked at a rate of $18 per hour. The employer must first calculate the employee’s regular rate of pay as follows:
((25 hours x $15) + (20 hours x $18)) / 45 hours = $16 per hour
The employer must then calculate the employee’s overtime pay for the 5 hours worked over 40 in the workweek at one and a half times the employee’s regular rate of pay:
5 hours x $24 per hour = $120
If you are an employee in Massachusetts who works at multiple rates of pay in a single workweek and you have questions about your entitlement to overtime pay, it is important to speak with an experienced employment attorney. Contact us today to schedule a consultation and learn more about your rights and options under Massachusetts and federal law.