Computing Overtime Pay

Overtime must be paid at a rate of at least one and one-half times the employee’s regular rate of pay for each hour worked in a workweek in excess of the maximum allowable in a given type of employment. Generally, the regular rate includes all payments made by the employer to or on behalf of the employee (except for certain statutory exclusions). The following examples are based on a maximum 40-hour workweek applicable to most covered nonexempt employees.

1. Hourly rate (regular pay rate for an employee paid by the hour) – If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due.

Example: An employee paid $8.00 an hour works 44 hours in a workweek. The employee is entitled to at least one and one-half times $8.00, or $12.00, for each hour over 40. Pay for the week would be $320 for the first 40 hours, plus $48.00 for the four hours of overtime – a total of $368.00.

1. Piece rate – The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings.

Example: An employee paid on a piecework basis works 45 hours in a week and earns $405. The regular rate of pay for that week is $405 divided by 45, or $9.00 an hour. In addition to the straight-time pay, the employee is also entitled to $4.50 (half the regular rate) for each hour over 40 – an additional $22.50 for the 5 overtime hours – for a total of $427.50.

Another way to compensate pieceworkers for overtime, if agreed to before the work is performed, is to pay one and one-half times the piece rate for each piece produced during the overtime hours. The piece rate must be the one actually paid during nonovertime hours and must be enough to yield at least the minimum wage per hour.

1. Salary – The regular rate for an employee paid a salary for a regular or specified number of hours a week is obtained by dividing the salary by the number of hours for which the salary is intended to compensate. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the salary.

If, under the employment agreement, a salary sufficient to meet the minimum wage requirement in every workweek is paid as straight time for whatever number of hours are worked in a workweek, the regular rate is obtained by dividing the salary by the number of hours worked each week. To illustrate, suppose an employee’s hours of work vary each week and the agreement with the employer is that the employee will be paid $480 a week for whatever number of hours of work are required. Under this agreement, the regular rate will vary in overtime weeks. If the employee works 50 hours, the regular rate is $9.60 ($480 divided by 50 hours). In addition to the salary, half the regular rate, or $4.80, is due for each of the 10 overtime hours, for a total of $528 for the week. If the employee works 60 hours, the regular rate is $8.00 ($480 divided by 60 hours). In that case, an additional $4.00 is due for each of the 20 overtime hours for a total of $560 for the week.

In no case may the regular rate be less than the minimum wage required by the FLSA.

If a salary is paid on other than a weekly basis, the weekly pay must be determined in order to compute the regular rate and overtime pay. If the salary is for a half month, it must be multiplied by 24 and the product divided by 52 weeks to get the weekly equivalent. A monthly salary should be multiplied by 12 and the product divided by 52.

This service is offered to free to anyone over the age of 16 and can be used to confirm your eligibility for employment. This is beneficial because it allows a worker to discover any issues that may arise when employer’s use the E-Verify system. They can then take the appropriate measures to correct any data mismatches in the E-Verify system. E-Verify uses information provided on the I-9 to verify a person’s eligibility for employment in the United States. There are many reasons that can affect the outcome of the verification such as name changes, citizenship changes, mismatch birthdates, etc.

To learn more about Self Check visit: http://www.uscis.gov/portal/site/uscis

Peters was a commissioned minister who taught at Lutheran Church-Missouri Synod. In 2004 she was diagnosed with narcolepsy. Before her return, after a year of leave, the school board had moved to replace her permanently. She did not accept the “peaceful release agreement” she was offered. She then was terminated for “insubordination and disruptive behavior.”

She filed a discrimination charge with the EEOC and they brought a lawsuit on her behalf. The Federal District Court found that the ministerial exception applied and since she was a commissioned minister she was not able to file a lawsuit. They appealed and the 6th Circuit Court found that she was not in fact a minister and therefore she could bring an employment lawsuit against the church. This was appealed and the Supreme Court reversed the 6^th Circuit Court’s decision. The Supreme Court found that there is a ministerial exception and a church does not have to continue to retain an unwanted minister and cannot be punished if they do not retain an unwanted minister.

http://bit.ly/AaYjhU

http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0751-0800/sb_757_bill_20110906_enrolled.pdf

These are some of the reasons California is listing for the prohibition of the mandatory use of E-Verify:

1. The E-Verify system is not sufficient enough to meet the requirements to provide accurate verification for employment.
2. By mandating the use of E-Verify they would be increasing the costs of driving business in a difficult economy.
3. Businesses in California would be affected by implementing the E-Verify system because the staff must receive additional training and this would have cost in the billions, mostly affecting the small businesses.

http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_1201-1250/ab_1236_bill_20110331_amended_asm_v98.pdf

Labor Code section 1024.5, the person for whom the report is sought must be: (1) in a managerial position, as defined below; (2) in a position in the state Department of Justice; (3) in the position of a sworn peace officer or other law enforcement position; (4) in a position for which the information contained in the report is required by law to be disclosed or obtained; (5) in a position that involves regular access to specified personal information for any purpose other than for the routine solicitation and processing of credit card applications in a retail establishment; (6) in a position in which the person is or would be a named signatory on the employer’s bank or credit card account, or authorized to transfer money or enter into financial contracts on the employer’s behalf; (7) in a position that involves access to confidential or proprietary information (as specified); or (8) in a position that involves regular access to $10,000 or more of cash, as specified. “managerial position” is defined in the new law as an employee covered by the executive exemption set forth in Industrial Welfare Commission Wage Order 4, subparagraph 1 of paragraph A of Section 1, which applies to “persons employed in professional technical, clerical, mechanical and similar occupations.”

Before an employer can even request a consumer credit report they must give a written notice to the potential candidate of the exact reason as to why they are running the consumer credit report. See more about the new law by visiting the link below.

http://library.constantcontact.com/download/get/file/1101484724288-375/CA_AB_22_2011_final_Gov_Brown.pdf

Right to work or employment without membership in labor organization

No person shall be denied the opportunity to obtain or retain employment because of non-membership in a labor organization, nor shall the State or any subdivision thereof, or any corporation, individual or association of any kind enter into any agreement, written or oral, which excludes any person from employment or continuation of employment because of non-membership in a labor organization. (Addition approved election Nov. 5, 1946, eff. Nov. 25, 1946; amended November 30, 1982.)

For more information on Right to Work in Arizona please visit: http://www.azleg.gov/arizonarevisedstatutes.asp?title=23  

If you work in a right to work state you may be under the wrong impression as to what that entails. Many people believe they can be fired without cause at any time. Although you do live in a right to work state that does not mean you have no rights. Here is what it boils down to when talking about the right to work:

You have the right to not join a union and you have the right to not pay dues to a union unless you choose to join.  You do not have to be part of a union if you do not wish to be.

Many people that are for union states believe that by employees not being required to pay mandatory dues to a union there cannot  be an offset  of the larger businesses within the economy. Without this offset they argue it results in fewer earnings for workers. They also argue that employees that are not paying dues to a union are essentially catching a free-ride because they are able to enjoy the perks associated with their employment rights and benefits, but without the price of the union fees.

So is it better to work in a right to work state or a union state? There are arguments for both. I have put some interesting links below:

http://online.wsj.com/article/SB120450306595906431.html

http://washingtonexaminer.com/blogs/beltway-confidential/2011/02/mitch-daniels-right-and-right-work-wrong

http://www.nytimes.com/2011/01/04/business/04labor.html?_r=1&pagewanted=2

http://www.stopteacherstrikes.org/index.php?pr=Forced_Unionism

All Arizona employers will need to update their Minimum Wage Poster for 2012. You can visit http://www.ica.state.az.us/ to obtain the most current poster.

read more here: http://www.myfoxdfw.com/dpp/news/weird/021511-worker-sat-dead-at-desk-for-1-day

NAPEO Members save 30% off the retail price with Compliance Poster Company for a variety of high-quality compliance products, including the convenient State & Federal All-On-One™ Labor Law Poster and the cost-saving, environmentally friendly Peel ‘N Post™ update solution. NAPEO members also have the option to customize your posters at no additional cost with your PEO’s logo, phone number, and website! To find out more information or to place your order today, call NAPEO’s dedicated Customer Service Representative, Darius Derakshan, at (800) 997-5545.