Overtime rate for second job

[laurie0737]

What is the name of your state? New York
I have two separate businesses with separate EIN numbers and an employee that works at one for $9.00 an hour for 40 hours. She also works at the second business doing a completely different job ( Bed and Breakfast) for $6.00 per hour for 20 hours per week. I understand that I have to pay her overtime per DOL for the extra 20 hours worked but at what rate? Do I pay time and a half for the $9.00 or does she get time and a half for the $6.00 rate?

 

[Beth3]

You calculate the overtime using a weighted average.

40 hrs. x $9 = $360
20 hrs. x $6 = $120
$120 + $360 = $480
$480/60 hours = $8 x 1.5 = $12

All hours worked over 40 must be paid at $12/hour.

You have to recalculate the weighted average every time she works other than the 40 hour/20 hour schedule or if there is a change in her base pay.

Now that said, you might want to run this by a payroll expert. Doing the actual calculation on this isn't my forte, as several payroll experts have pointed out to me in the past.

 

[pattytx]

Beth, that's almost right. (I always get these right on the CPP exams!)

40 * $9.00 = $360
20 * $6.00 = $120
$360 + $120 = $480
$480/60 = $8 (regular rate of pay)
20 * $8 * .5 = $80 (premium portion of overtime)
$480 + $80 = $560 total pay

The difference is that the first two calculations are inclusive of all straight-time earnings, including those that apply to the overtime hours. So, the additional premium for the overtime hours is only the .5 factor.

 

[Beth3]

There's a reason I always advise someone to check with an expert whenver i answer this question. Payroll is not my thing.

 

[laurie0737]

Thanks for the help!