Paying the Price for Underpaying Workers

HR professionals should ensure that workers are paid for their work on a timely basis. Sometimes, companies pay workers less than what they should and there are various possible reasons such as intent to save money or in error. Either way, paying employees lesser amounts than owed may violate the law. For instance, the Fair Labor Standards Act (FLSA), which we will discuss in Chapter 3, requires employers to pay eligible workers a higher pay for overtime work. Specifically, the overtime pay rate equals 1.5 times the regular hourly pay rate for each additional hour exceeding

40 in a workweek. You've learned that the company has not been paying employees appropriately for overtime work hours. It is your responsibility to calculate the amount of overtime pay owed to workers. After reviewing the payroll records, you discovered the following details:

Group 1: 230 workers. Each worker earns a regular hourly pay rate of $19.37 For each of the past 13 workweeks, everyone worked 50.00hours.

Group 2: 260 workers. Each worker earns a regular hourly pay rate of $19.75 For each of the past 12 workweeks, everyone worked 46.00 hours. Every worker received regular pay for all their hours worked, but they did not receive the additional overtime pay amount.

Part 2

The hourly overtime pay rate for each worker in: (Round your answers to the nearest hundredths place.)

(a) Group 1:

$enter your response here

(b) Group 2:

$enter your response here