How Do You Calculate the Overtime Premium Rate?
The simple answer is that the overtime rate is one and a half times your regular hourly rate of pay for each hour over forty in a single week. If your regular rate of pay is $15 per hour, your hourly rate for overtime hours will be $22.50 per hour.
Some situations make this more complicated. For example, if you are paid $20 per hour for time on site and $14.25 for travel time between worksites, what is your regular rate of pay? In that case the employer is required to calculate a "blended" overtime rate that averages your two rates of pay and adjusts for how much of each you receive in a regular week. If your time is evenly divided between time at the work rate and time at the travel rate, the blended rate of pay is simply an average, or $17.12 per hour straight time and a $25.68 per hour overtime rate. If the hours are not divided equally, the employer will have to adjust for that.
If you are paid a salary, your regular rate of pay should be your weekly salary divided by 40 hours, with the overtime rate being 1.5x that amount.
Learn more here about calculating overtime pay under Massachusetts and federal law.
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