All hours worked will be calculated at the hourly rate. Then the overtime hours will have an additional calculation at “half-time” (50% of pay hourly rate.)
Example 1: An employee with a pay rate of $10/hour works 48 hours in one week.
Regular Pay 48 hours @ $10.00/hour = $480.00
Overtime 8 units @ $5.00/hour* = $40.00
Total Pay = $520.00
Example 2: An employee with a pay rate of $10/hr works 40 hours and has an 8-hour vacation day.
Regular Pay 40 hours @ $10/hr. = $400.00
Vacation Pay 8 hours @ $10/hr. = $80.00
Total Pay = $480.00
No overtime is calculated because the employee did not actually work over 40 hours in the week. The 8 hours of vacation pay do not count towards the 40-hour threshold.
Example 3: An employee with a pay rate of $10/hr works 42 hours and has an 8-hour sick day.
Regular Pay 42 hours @ $10/hr. = $420.00
Overtime 2 units @ $5/hr. = $10.00
Sick Pay 8 hours @ $10/hr. = $80.00
Total Pay = $510.00
The employee actually worked 2 hours over the 40-hour threshold. Overtime was calculated for 2 hours.