Example of Contractual Overtime with a Multiplication Factor Greater Than 1.5
This example shows the calculation and comparison of the contractual and FLSA premiums:
| Item | Description |
|---|---|
|
Employee |
Jane |
|
Contractual hourly rate |
12.00 USD |
|
Workday |
8 hours |
|
FLSA period |
7 days |
|
Pay period |
Weekly |
Contractual Calculation
| Earnings Code | Hours | Rate | Earnings |
|---|---|---|---|
|
Regular |
40 |
12.00 USD |
480.00 USD |
|
Overtime at 1.5 |
3.5 |
18.00 USD = 12.00 USD × 1.5 |
63.00 USD |
|
Overtime at 2.0 |
4.5 |
24.00 USD (= 12.00 USD × 2) |
108.00 USD |
|
Shift 2 differential |
16 |
3.25 USD |
52.00 USD |
|
Shift 2 overtime at 1.5 |
2 |
22.875 USD = (12.00 USD + 3.25 USD) × 1.5 |
45.75 USD |
Jane's contractual premium pay is 90.25 USD:
-
12.00 USD × 0.5 × 3.5 overtime hours = 21.00 USD.
-
12.00 USD × 1 × 4.5 overtime hours = 54.00 USD.
-
15.25 USD × 0.5 × 2.0 shift overtime hours = 15.25 USD.
FLSA Calculation
| Earnings Code | Hours | Straight-Time Rate | Straight-Time Earnings |
|---|---|---|---|
|
Regular |
40 |
12.00 USD |
480.00 USD |
|
Overtime at 1.0 |
3.5 |
12.00 USD |
42.00 USD |
|
Overtime at 1.0 |
4.5 |
12.00 USD |
54.00 USD |
|
Shift 2 differential |
0 |
3.25 USD |
39.00 USD |
|
Shift 2 overtime at 1.0 |
2 |
15.25 USD |
30.50 USD |
|
Totals |
50 |
|
645.50 USD |
Calculations:
-
FLSA rate:
12.91 USD = 645.50 USD / 50 total weekly hours.
-
Premium pay:
12.91 USD × 0.5 × 10 overtime hours = 64.55 USD.
Because the contractual overtime premium of 90.25 USD is greater than the FLSA premium of 64.55 USD, use the contractual rates to calculate Jane's overtime.