Let’s discuss a hypothetical so we all know what the question is asking.
John is an inside salesperson and gets $10.00 per hour and also receives a commission of $20.00 for each sale he makes in the workweek. John works 50 hours in a single week and makes 5 sales totaling $100 in commission.
Here is how to calculate the overtime rate for John
50 hours x $10.00 per hour + $100.00 in commission =$600.00 in straight hourly pay including $100.00 in commission.
You now divide $600.00/50 hours which equals $12.00 per hour. Once you have figured out the straight hourly rate ($12.00), you then multiply that amount times .50, which equals $6.00. You then add the straight hourly rate and half-rate together (for John it would be $18.00 per hour) $12..00 + $6.00 = $18.00 for each overtime hour over 40 hours. In John’s case, he worked 10 hours overtime at $18.00 per hour and 40 hours and $10.00 per hour. John’s total pay for the week should have been $660.00.
Note: If the pay is not calculated, as shown above, you will have been under paid. This is a common problem even among the largest employers.
If you have any questions, please feel free to contact the Law Offices of Scott A. Miller, A Professional Corporation, at (800) 417-2008.
John is an inside salesperson and gets $10.00 per hour and also receives a commission of $20.00 for each sale he makes in the workweek. John works 50 hours in a single week and makes 5 sales totaling $100 in commission.
Here is how to calculate the overtime rate for John
50 hours x $10.00 per hour + $100.00 in commission =$600.00 in straight hourly pay including $100.00 in commission.
You now divide $600.00/50 hours which equals $12.00 per hour. Once you have figured out the straight hourly rate ($12.00), you then multiply that amount times .50, which equals $6.00. You then add the straight hourly rate and half-rate together (for John it would be $18.00 per hour) $12..00 + $6.00 = $18.00 for each overtime hour over 40 hours. In John’s case, he worked 10 hours overtime at $18.00 per hour and 40 hours and $10.00 per hour. John’s total pay for the week should have been $660.00.
Note: If the pay is not calculated, as shown above, you will have been under paid. This is a common problem even among the largest employers.
If you have any questions, please feel free to contact the Law Offices of Scott A. Miller, A Professional Corporation, at (800) 417-2008.
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