STEPHEN P. POSTALAKIS Blaugrund, Herbert, Kessler, Miller, Myers

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STEPHEN P. POSTALAKIS Blaugrund, Herbert, Kessler, Miller, Myers

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Calculating Overtime Pay What is the base rate of pay? Hourly rate, plus: On-call pay; Non-discretionary bonuses; Retroactive wage increases; Shift differential; and ... – PowerPoint PPT presentation

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Title: STEPHEN P. POSTALAKIS Blaugrund, Herbert, Kessler, Miller, Myers

1
STEPHEN P. POSTALAKISBlaugrund, Herbert,
Kessler, Miller, Myers Postalakis,
Incorporated spp_at_bhmlaw.comOhio Association
of County Boards Serving People with
Developmental DisabilitiesPersonnel
CouncilSeptember 29, 2010

Calculating Overtime Pay

2
First Step Determine the Base Rate of Pay

What is the base rate of pay?
Hourly rate, plus
On-call pay
Non-discretionary bonuses
Retroactive wage increases
Shift differential and
Longevity pay.

3
On-call pay

Things to remember
On-call pay is included in determining the
employees base rate of pay.
Hours spent on-call are not necessarily hours
worked when determining whether the employee
worked in excess of 40 hours in a work week.

4
Non-discretionary bonuses

Examples
Bonuses for educational attainment
Bonuses for attendance, production and
Holiday bonuses that are so regular that
employees expect them.

5
Items excluded from calculations of the base rate
of pay

Discretionary bonuses.
Sick leave buyback.
Featsent v. City of Youngstown, 70 F.3d 900 (6th
Cir. 1995) (Sick leave buyback excluded from
calculation of base rate of pay).
Payments made for occasional periods where no
work is performed.

6
Discretionary Bonuses

Amounts paid in recognition of service if BOTH
The fact of the payment, AND
The amount of the payment
are determined in the sole discretion of the
employer, AND
The bonus is not paid pursuant to any prior
promise, agreement, or contract causing the
employee to expect the bonus.

7
Payments made for occasional periods where no
work is performed

Holidays, vacation, illness, or unavailability of
work.
Holiday pay and regular pay, paid for the same
day the employees base rate of pay is not
double.

8
What if the add-on applies to past work weeks?

This often occurs when one of the add-ons is paid
less frequently, but applies to a longer period
of time, i.e. a quarterly bonus.
Disregard the bonus until the workweek in which
it is paid.
When the bonus is paid, calculate any catch-up
payment owed for the period covered by the bonus.

9
Example Stephanie Postal

Stephanie Postal gets a 500 bonus each quarter.
The bonus is included in her pay for the last
week of the quarter.
Stephanies normal pay rate is 10.00/hour.
In week 4 of the 12 week quarter, Stephanie
worked 50 hours. In her pay for week 4, she was
paid overtime at the rate of 15 for the 10
overtime hours. In every other week, Stephanie
worked 40 hours.
The 500 bonus was included in Stephanies pay
for week 12 of the quarter.

10
Example Stephanie Postal

Stephanies adjusted base rate of pay for the
quarter is
Her base rate of 10.00/hour, PLUS
An additional 1.02/hour.
She actually worked 490 hours (11 weeks at 40
hours and one week at 50 hours).
Taking the total amount paid (5,400) divided by
the total hours worked (490) results in a base
rate of 11.02 per hour.

11
Example Stephanie Postal

Although her employer paid time and one-half for
the ten hours overtime Stephanie worked in week
4, it only paid time and one-half on the 10.00
base rate (15/hour), not her adjusted base rate
of 11.02 (16.53.hour)
The employer must include an additional 15.30 in
her check for week 12 (1.53 X 10 hours overtime).

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