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What is Rate of Regular Pay?

Sounds simple enough, but just as in many other areas of employment requirements, when not clearly understood this can become a painful lesson to learn.

Regular rate of pay is not just a non-exempt employees' hourly rate. Regular rate of pay includes various earnings such as, hourly rate, commission and non-discretionary bonuses. This is important because overtime is base on the regular rate of pay. Therefore, when non-exempt employees have earnings in addition to their hourly rate, it is important to evaluate and ensure proper calculation of the regular rate of pay and calculate any overtime properly.

What if there are two different rates of pay?

If there are two different rates of pay, such as a production rate and a driving rate, then there must be a weighted average calculation to ensure the proper overtime premium is applied. Overtime IS NOT simply paid at the rate during which overtime occurs. *possible exception for prevailing wage rates

Misty Elmore, SPHR, PHRca, SHRM-SCP

Principal/Human Resource Consultant

Phone: 916-337-9121 I I

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While Better Bookkeepers uses all reasonable efforts to ensure that this information is current and complete on the date of publication, no representatives or warranties are made (expressed or implied) as to the reliability, accuracy or completeness of such information. Better Bookkeepers, therefore, cannot be held liable for any loss arising or indirectly from the use of, or any action taken in reliance on, any information appearing in this publication.


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