Chpt2MasteryProb3

Standard Overtime In cases where a state's minimum wage is higher than the federal hourly rate, the FLSA requires that an employee be paid the higher of the two. Using the Standard Overtime method, an employee is paid one and one-half times their regular hourly rate of pay for work that exceeds 40 hours. Example Employee has moved to a state where minimum wage is $12.95 per hour. Example worked 46 hours for this pay period. The computation is as follows: Hours Formula Amount Standard Hours: 40.0 40.0 hours × $12.95 = $518.00 Overtime hourly rate ($12.95 × 1.5) = $19.43, rounded to 2 decimals Overtime Hours: 6.0 $19.43 × 6.0 hours = 116.58 Gross Earnings = $634.58 Overtime Premium Approach An alternative method for computing overtime, referred to as the Overtime Premium Approach , initially takes the total hours worked (including overtime hours) and multiplies the total by the regular rate of pay. Then an overtime premium rate is calculated (the regular hourly rate multiplied by one-half ). The hours worked in excess of 40 are multiplied by this rate to determine the overtime pay. Example Employee is still earning $12.95 per hour. Example worked 46 hours for this pay period. Using the the overtime premium approach, his overtime is computed as follows: Hours Formula Amount Hours Worked: 46.0 46.0 hours × $12.95 = $595.70 Overtime hourly rate ($12.95 × 0.5) = $6.48, rounded to 2 decimals Overtime Hours: 6.0 $6.48 × 6.0 hours = 38.88 Gross Earnings = $634.58 🔐 Looking Under Lock and Key Note: Round interim calculations to two decimal places. Use rounded amounts in subsequent computations. And, round your final answer to two decimal places. Elliott Quinn earns $11.75 per hour and worked 43 hours for this pay period. Compute the following gross earnings for Elliott. Regular Hours 40.0 Hourly Rate $ 11.75 Regular Total Pay $ 470.00 Overtime Hours 3.0 Overtime Rate 17.63 Overtime Total Pay 52.89 Total Gross Earnings $ 522.89 Compute Finley River's gross earnings under the overtime premium approach. The hourly rate is $18.15 and 48 hours were worked during the week. Regular Hours 48.0 Hourly Rate $ 18.15 Regular Total Pay $ 871.20 Overtime Hours 8.0 Overtime Rate 9.08 Overtime Total Pay 72.64 Total Gross Earnings $ 943.84