5.2.2019
If my employee performs two different jobs for me and the employee's collective hours exceed forty, do I need to pay the employee overtime?
Yes, all hours count toward overtime. For example, if an employee works 20 hours a week for you in one position and 25 hours a week in another position for you, the employee is entitled to 5 hours of overtime pay, even though the employee’s hours in the individual positions do not exceed 40. However, if an employee works 40 hours for you and 10 hours for another employer completely unrelated to you, the employee is not entitled to overtime.
How do I calculate overtime payments for employees with different pay rates?
When an employee performs work at two different hourly rates, the employee's regular rate for a given week is the weighted average of the rates. Therefore, the employee’s total earnings are computed to include his/hers compensation during the workweek from all such rates, and are then divided by the total number of hours worked at all job, thus establishing a weighed hourly average.
For example, if the employee above earns $10 per hour for the job wherein he/she worked 20 hours and $20 per hour for the job wherein he/she worked 25 hours: as straight time the employee would be paid $700 ($200 + $500) and he/she worked 45 hours for a weighed hourly average of $15.56. The 5 hours of overtime must be paid at the rate of $23.34 ($15.56 x 1.5). For the week, the employee would be paid $716.70 ($200 [20 x $10] + $400 [20 x $20] + $116.70 [5 x $23.34]).
Takeaway: All hours worked for an employer count towards their overtime. As such, employers should ensure they are paying employees who work more than one job for the employer properly.
Tag: Employee Overtime
The postings on this blog were created for general informational purposes only and do not constitute legal advice or a solicitation to provide legal services. Although we attempt to ensure that the postings are complete, accurate, and current as of the time of publication, we assume no responsibility for their completeness, accuracy, or timeliness. The information in this blog is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional legal counsel.
This blog may contain links to independent third party websites and services, including social media. We provide these links for your convenience, and you access them at your own risk. We have no control over and do not monitor the content or policies (including privacy policies) of these third-party websites and have no responsibility for, and no liability with respect to, their content, accuracy, or reliability. Unless expressly stated, we do not endorse any of the linked websites or any product, service, or publication referenced herein or therein. We will remove a link to any site from this blog upon request of the linked entity.
We grant permission to readers to link to this blog so long as this blog is not misrepresented. This site is not sponsored or associated with any other site unless so identified.
If you wish for Wilentz, Goldman & Spitzer, P.A., to consider representing you, please obtain contact information from the Contact Us area of this blog or go to the firm’s website at www.wilentz.com. One of our lawyers will be happy to discuss the possibility of representation with you. However, the authors of Wilentz blogs are licensed only in New Jersey and/or New York and do not wish to represent anyone who viewed this site in a state where the site fails to comply with all laws and ethical rules of that state.
