Once calculation is complete, please print out and keep on file as a time card.
This “time card” will be required in the event of any audit. |
| Employee Name: |
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Company #: |
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Pay Period Ending: |
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| INSTRUCTIONS: |
- You must track total hours for the week,
including time to remove and post billboards or other signs.
- Enter in exact pay rates and units (hours
worked, number of posters, etc.).
- Do not enter data into the yellow boxes. The
worksheet will automatically calculate fields in yellow boxes.
- Do not leave a field blank.
- Enter zero (0) in the Rate of Pay per Unit and
# of Units Completed fields if the particular pay type does not apply.
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| IMPORTANT: |
1. This calculator will determine the legal
rate at which overtime pay can be calculated.
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2. The "rate of pay" field for REGULAR HOURS
will NOT be populated if no more than 40 hours are worked. |
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| RULES: |
According to 29 U.S.C.A. § 207
(a)(1), an employer has to compensate employees who work more than 40 hours per
week at a rate of at least one and one-half times the regular rate at which
they are employed. The calculation of overtime is easy for workers who get paid
only an hourly rate. With regard to pieceworkers, the difficulty is to
determine the basic regular rate before calculating overtime pay. The
Department of Labor explains its regulations in that a pieceworker's hourly
rate is computed by adding together his total earnings for the workweek,
including piece rates, production bonuses and other sources of pay and then
dividing the sum by the numbers of hours worked in that week (regular rate).
For every hour that the pieceworker worked in excess of 40 hours that week, he
needs to be compensated 1 ½ times his rate (not to be confused with "base" or
"hourly" rate). That means that ½ of his regular rate must be added to his pay
for each hour he worked overtime.
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| EXAMPLE: |
A billposter worked 52.5 hours this
week.
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First, the regular rate must be
determined by adding all his earnings, divided by the number of hours worked:
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1. He posts 38 posters @ $22.40,
totaling $851.20. |
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2. He also receives “Wet-Up Pay” of
$1.20 per unit: 38 posters x $1.20 = $45.60
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3. He had (4) hours meeting time, for
which he gets compensated at a rate of $16.38 per hour: 4 x $16.38=$65.52
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4. Added up: $851.20 + $45.60 +
$65.52 = $962.32 |
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5. $962.32 divided by 52.5 hours =
$18.33 average regular rate |
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6. According to the FLSA he needs to
get paid 1 ½ times his regular rate per every hour worked overtime. That means
that he needs to get compensated 1 ½ times (150%) his regular pay per hour for
12.5 hours. Since the billposter was already compensated with 100% of his
hourly rate for the entire 52.5 hours that he had worked, only ½ (50%) of the
regular rate needs to be added: 18.33 x 0.5 = $9.17. 12.5 (hours over 40) x
$9.17 = $114.63
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7. Total pay for the pay period:
$962.32 straight time + $114.63 overtime pay = $1,076.95 |
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The total amount to pay the employee
should be entered in the piecework field on the Time Entry sheets.
Documentation of how the calculations were made should be kept on file at your
plant in the case an audit is conducted in the future.
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| **Note: Vacation, sick, and holiday
pay are all based on the regular hourly rate (not adjusted).
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