If employees work at two different pay rates in a single workweek, the regular rate for the workweek is determined by adding the rates together and dividing the total by the number of hours worked. When you add an employee, you can enter up to eight hourly pay rates. If an employee spends 40 hours in a week working as a Receptionist at $10 per hour, and two hours a week as a Design Coordinator at $50 per hour, the overtime rate for any additional hours spent as Design Coordinator is $75.00 per hour ($50 times 1.5). Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. To break this down, here is a long example, the regular rate of an employee who works 40 hours per week at $10 per hour as a Receptionist ($400), and works 2 hours that same week at $50 per hour as a Design Coordinator ($100), is $500 divided by 42 hours or $11.90 per hour. rates are added together and this total is then divided by the total number of hours worked at all jobs. The employee can choose to use existing leave under the employer’s policy. § 778.115 Employees working at two or more rates. Susan has 20+ years of HR experience and provides a HR presence to business organizations without the overhead expense of a full-time employee. Congress passed the EPA in 1963, mostly to ensure that women earn the same pay rates as men doing similar work. You pay them $5 per hour for waitressing, $12 per hour for hostessing, and $11 per hour for dishwashing. If you don’t pay your day-rate employees overtime, you need to rectify the situation immediately. set ... QuickBooks Online, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services, QuickBooks Self-Employed, QuickBooks ProAdvisor Program, QuickBooks Online Accountant, QuickBooks Desktop Account, QuickBooks Payments, TSheets by QuickBooks, Other Intuit Services. I actually do have an employment situation like this – an agreed upon # of hours (in writing) at an agreed upon rate, but the total hours go over 40. The employee’s regular and overtime rates may vary from week to week with the number of hours spent performing each job. And you can even pay different employees different rates for the same pay rate type. Susan is passionate about her customers and listens to their needs. Sales Tax. This method of computation is available for hourly employees only and does not apply to salaried employees. Typically, according to the FLSA regulations found at 29 C.F.R. The employer wants to track how much time the employee spends on each job, so the employer has him use two different time clocks. All (The employee in the example has already been paid straight time for the first 2 overtime hours up to 40 and is only entitled to the additional “half” of the time and one-half of overtime pay on the balance over 40.) Employees being paid two or more rates. The simple answer is yes, you may pay employees at two different rates when two different types of work are being performed. If localization and equalization are now emerging as the standard practices, it raises the question of how an employer can protect itself and their employee from dramatic changes in currency rates. Feel free to reach out anytime. Susan Arnold, owner and lead HR Consultant at HR On-Call, LLC. Yes, you can pay two different hourly rates, MD15. Is it unfair to pay two different employees a different wage or remuneration for the same work? If staff have different contracts then it is possible for them to be paid at different rates. An employee works two different types of jobs within the same company. Susan Arnold HR On-Call, LLC p. 515.401.2233 Employees Working at Two or More Rates. Click Employees. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. Example: Elena works as a part-time legal secretary, working about 30-hours per week. The problem arises when overtime is worked. Pursuant to Section 7(g)(2) of the FLSA, an employer alternatively may pay an employee overtime at one-and-one-half times the bona fide rate applicable to the type of work being performed during the overtime hours. What is the best way to establish this employee in myob so that her annual leave entitlements and eventual leave loading correctly reflect the differing pay rates. The overtime premium owed the employee is an additional $5.95 ($11.90 divided by 2) for each hour over 40, regardless of which job the employee performs during the extra hours. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. The Ups and Downs of the stock market….are you buckled in. Here there are basically two options. Employees should also know that it is not just work for the exact same company that counts. It makes no difference that some portion of those hours are spent performing different duties than other hours. But the SCA allows for a different method if the employer can prove which hours of work were for a project or class of work the employee was engaged to perform. The employee is due time and a half, but at what rate? Where an employee in a single workweek works at two or more different types of work for which different straight-time rates have been established, the regular rate for that week is the weighted average of such rates. Employers should make sure to keep precise records that break down the specific hours each employee worked at the different rates. Accordingly, under the SCA, employers can still pay workers performing two different jobs two different rates of pay. 29 CFR 778.115. You can receive only overtime pay under FLSA if the primary duties between both jobs fulfill the criteria for non-exemption instead of exemption. When running payroll manually, it’s important to keep track of every employee’s pay rate and number of hours worked (or paid) at each rate; and calculate the correct pay rates for the correct tasks performed. The employee can choose to take EPSL during the two weeks of EFMLA, which would be paid at 2/3 of the employee’s regular rate. Accordingly, the employee would be paid an additional $11.90 in overtime ($5.95 times 2 hours), so that the employee’s total pay for the week would be $511.90 ($500 straight time pay plus $11.90 overtime premium). Although it is possible for an employer to have two different hourly wage rates for two different types of work for the same employee, the employer can't get around mandatory overtime compensation by only charging the overtime to the lower waged work. The payroll processor might either pay the employee twice each pay period or calculate the payment for each job and combine the two. Please note, however, that if a SCA covered worker is engaged in work the same job classification family or series, the two jobs usually cannot be separated and paid different rates, which would be allowed if only the FLSA was in … You can use the same pay type for any of your employees. Your email address will not be published. This exception cannot be applied to an employee who is paid different hourly rates for the same type of work. e. Susan@HROn-Call.com. If an employee works on Machine A at $10 per hour, and Machine B at $12 per hour, and each week the number of hours on each machine varies, the weighted average regular rate of pay will vary from workweek to workweek, and thus the sick leave pay would vary as well. Day-rate employees are paid on a per-day basis as opposed to being paid a salary or an hourly rate. Set up employees. All you have to do is add an additional pay type. §778.115, the employee’s regular rate of pay when he works two jobs is calculated as the weighted average of the different rates. Typically, the overtime rate is easy to calculate by taking the employee’s regular hourly rate and multiplying by 1.5. Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. A little more about us: See 29 C.F.R. Or, an employee may work in two or more different positions during the same workweek at different rates of pay. I. If the training time is paid at a lower rate, the employer must calculate the overtime rate by first determining a weighted “regular rate of pay”. There are some exceptions discussed in 29 CFR 778.400 and 29 CFR 778.415 to 778.421. Overtime can be paid at any rate , but it should specify in your contract what the rate is. The weighted average is the total regular pay divided by the total hours worked in the week. I have an employee who performs 2 different jobs for my organization, Should I allow this? Tribunals can be invoked for things like constructive dismissal etc but there are several steps to go through first. QuickBook... *Not sure which Payroll service you have? Is it unfair to pay two different employees a different wage or remuneration for the same work? That is, the earnings from all such rates are added together and this total is then divided by the total number of