Y Medal Points As every athlete knows, it takes practice, practice, practice to get to the top. Here's your opportunity to get to the top! Remember: Round interim calculations to two decimal places. Use rounded amounts in subsequent computations. And, round your final answer to two decimal places. Compute the following gross earnings for Michael Phelps, who is paid the FLSA hourly rate and worked 47 hours during this pay period. Regular Hours Regular Total Pay $ Overtime Hours Overtime Total Pay Total Gross Pay $ Compute the following gross earnings for Michelle Kwan, who is paid $19.10 per hour and worked 45 hours during this pay period. Regular Hours Regular Total Pay $ Overtime Hours Overtime Total Pay Total Gross Pay $ Compute Bode Miller's gross earnings using the Overtime Premium Approach knowing that the hourly rate is $16.85 and 41 hours were worked during the week. Regular Hours Regular Total Pay $ Overtime Hours Overtime Total Pay Total Gross Pay $ Compute Dale Earnhardt's earnings knowing that $17.35 per hour is paid for Job A and $19.65 per hour is paid for Job B. Of the 44 hours worked during the week, 26 hours were completed for Job A and 18 hours were completed for Job B. Higher Rate for Overtime Hours Regular Hours, Job A Regular Total Pay, Job A $ Regular Hours, Job B Regular Total Pay, Job B Overtime Hours Overtime Total Pay Total Gross Pay Based on Actual Hours Worked Regular Hours, Job A Regular Total Pay, Job A $ Regular Hours, Job B Regular Total Pay, Job B Overtime Hours Overtime Total Pay Total Gross Pay $ Rate after the 40th Hour Note: In this scenario, the overtime hours can be attributed to Job B. Regular Hours, Job A Regular Total Pay, Job A $ Regular Hours, Job B Regular Total Pay, Job B Overtime Hours Overtime Total Pay Total Gross Pay Scenario 1: Determining FLSA Overtime You've now reviewed information regarding FLSA and certain conditions where the minimum wage can differ. Let's drill down and look at the minimum wage and overtime. The Fair Minimum Wage Act of 2007 requires that barring state laws, employees must be paid the federal minimum hourly wage. Additionally, the FLSA requires overtime pay for all hours worked, in excess of 40, to be paid at a rate of one and one-half times the employee's regular hourly rate of pay. Let's assume that Example Employee lives in a state where the minimum wage follows the federal FLSA rate. Example worked 46 hours, 6 hours in excess of a 40-hour work week. His gross earnings are computed as follows: Hours Formula Amount Standard Hours: 40.0 40.0 hours x $7.25 $290.00 Overtime hourly rate ($7.25 x 1.5) = $10.88, rounded to 2 decimals Overtime Hours: 6.0 $10.88 x 6.0 hours 65.28 Gross Earnings $355.28 Scenario 2: 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 $11.95 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 x $11.95 $478.00 Overtime hourly rate ($11.95 x 1.5) = $17.93, rounded to 2 decimals Overtime Hours: 6.0 $17.93 x 6.0 hours 107.58 Gross Earnings $585.58 Scenario 3: 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 $11.95 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 x $11.95 $549.70 Overtime hourly ($11.95 x 0.5) = $5.98, rounded to 2 decimals rate Overtime Hours: $5.98 x 6.0 hours 35.88 6.0 Gross Earnings $585.58 Y Medal Points: Yes or No: Did Example earn the same amount using either the standard overtime approach or the overtime premium approach? Yes Scenario 4: Different Rates for Different Jobs In cases where an employee is paid different rates for different jobs during the same workweek, the employers can, at their option, calculate the overtime in one of three ways: Higher Rate for Overtime Hours, Based on Actual Hours Worked, or Rate after the 40th Hour. Providing the hours and rates Eli Employee (Example's son) worked, his gross wages are computed below using the three different methods. Eli makes $14.75 per hour for Job A and $19.05 per hour for Job B and of the 44 hours worked during the week, he completed 20 hours for Job A, switched and completed 14 hours for Job B and finished up the week with 10 hours back on Job A. (1) Higher Rate for Overtime Hours Under this method, the higher (or highest) rate paid is used to determine the overtime rate (this rate times.5, rounded to two decimal places). This rate is then multiplied by the overtime hours, resulting in the overtime wages, rounded to two decimal places. Hours Formula Amount Hours Worked, Job A: 30.0 30.0 hours x $14.75 $442.50 Hours Worked, Job B: 14.0 14.0 hours x $19.05 266.70 Overtime hourly rate ($19.058 x 0.5) = $9.53, rounded Overtime Hours: 4.0 $9.53 x 4.0 hours 38.12 Gross Earnings $747.32 athe higher of the two (2) Based on Actual Hours Worked Under this method, the overtime rate is computed (total earnings divided by total hours worked multiplied by .5, rounded to two decimal places). This rate is then multiplied by the overtime hours, resulting in the overtime wages, rounded to two decimal places. Hours Formula Amount Hours Worked, Job A: 30.0 30.0 hours x $14.75 $442.50 Hours Worked, Job B: 14.0 14.0 hours x $19.05 = 266.70 Overtime hourly rate $709.200 = 44.0 hours = $16.12, rounded $16.12 x 0.5 = $8.06, rounded Overtime Hours: 4.0 $8.06 x 4.0 hours 32.24 Gross Earnings $741.44 combine wages for both Job A and Job B (3) Rate after the 40th Hour Under this method, the overtime time rate for the job is the rate that created the overtime hours (using this rate multiplied by .5, rounded to two decimal places). This rate is then multiplied by the overtime hours, resulting in the overtime wages. Hours Formula Amount Hours Worked, Job A: 30.0 30.0 hours x $14.75 $442.50 Hours Worked, Job B: 14.0 14.0 hours x $19.05 266.70 Overtime hourly rate ($14.750 x .5, rounded) x 4.0 hours 29.52 Gross Earnings $738.72 athe rate ($14.75, Job A) after the 40th hour