Overtime rate calculation

[Nichelle]

Has anyone heard of the overtime rate being calculated in this manner?
Employee X worked 41 hours,
25 hours at $10/hr and 16 hours at $12/hour
25 hours is 61% of 41 hours and 16 hours is 39% of 41 hours.
61% of 1 hour is .61*$10/hr*1.5=$12.11 and 39% of 1 hour is .39*$12/hr*1.5=$7.02.
OT rate = $19.13 ($12.11+$7.02) per calculations.
If so, when/why is it done in the manner?
Thanks in advance
Nichelle

 

[John Dickey]

Your example calculation is off some.=C2=A0 I calculate $16.16 as a blended overtime rate.=C2=A0 The first (.61*10*1.5) =3D 9.15, which is where the e rror looks to be.=C2=A0
=C2=A0
The issue here is that you have two differerent pay rates being paid to an employee in the same pay period.=C2=A0 It also depends on the circumstances .=C2=A0 Is there a union contract involved?=C2=A0 What state is this person working in?=C2=A0 Is there some kind of written contract covering how over time would be calculated?=C2=A0 Otherwise you are looking at the federal la bor laws coming in to play here.=C2=A0 But basically you are calculating a blended rate to use to calculate overtime.=C2=A0 The real world gets tricky when multiple pay rates come into play when calculating overtime.
=C2=A0
John Dickey