10) How is the overtime rate calculated for biweekly employees?
The overtime rate to be paid is the employee's base rate *1.5. The base rate is made up of the employee’s source hourly rate plus an hourly increment for any longevity and/or hazard duty pay the employee receives. The hourly increment for the longevity and/or hazard duty pay is calculated by multiplying the longevity and/or hazard duty pay by 12 and dividing the result by 2080. This is also equivalent to dividing the monthly longevity and/or hazard duty pay by 173.33.
Pay period February 23 through March 8
Employee normal rate of pay = 9.03 / hour
Longevity pay = 20.00 / month
Hazard duty pay = 0.00 / month
Overtime longevity/hazard duty pay rate = [(20.00 + 0.00) * 12] / (2080) = .12 / hour
Overtime rate = (9.03 + .12) * 1.5 = 13.73 / hour
This page was last updated on 06/11/2010 17:11:32