Overtime pay is calculated by multiplying the hourly wage of an employee by 1.5. Federal law sets the standard working week at 40 hours, so any time worked past this point is considered overtime. However, some employees are exempt, typically those on a salary or fixed wage.Know More
It is important to note that employees who work overtime are only paid more for the number of hours worked past the 40-hour mark. The first 40 hours that an employee works is still paid out at the regular rate. The Wage and Hour Division of the U.S. Department of Labor oversees overtime pay and related working conditions through the Fair Labor Standards Act. Employees who are exempt from overtime pay are reviewed on a case-by-case basis.
Overtime pay is not awarded for work completed at night, on holidays, or over the weekend. The rates for working during these times are handled between the employer and the unions. The FLSA stipulates that employers must keep detailed records of all wage payments to employees, including overtime pay. If an audit is conducted on a company's books, the employer must be able to show that FLSA standards were followed for allocating overtime pay. Finally, some state laws regarding overtime pay are stricter than those of the federal government. In this case, the more stringent law must be followed.Learn more about Salaries
According to the Internal Revenue Service, an employee should be paid 56 cents per business mile driven. This is the rate recommended by the IRS as of Jan. 1, 2014.Full Answer >
According to About.com, an employer can legally cut the pay of an employee as long as the employer is not violating any employee discrimination laws. Employers cannot cut pay if an employee is under an employment contract that prohibits it.Full Answer >
According to CBS MoneyWatch, as long as an employee is paid by the hour for work done, an employee can send that person home early without pay. An employer cannot dock the pay of an exempt employee if that employee is at work and ready and willing to work.Full Answer >
A pro rata salary is calculated by dividing someone's annual, full-time salary by any portion of an employment period that is less than a year, according to Discovering People. For example, if a full-time employee makes $52,000 per year, the pro rata salary for one week is $1,000 because there are 52 weeks in a year. Divide $1,000 by 40 hours per week, and the hourly wage is $25.Full Answer >