![\"Two](\"https:\/\/www.californialaborlaw.info\/wp-content\/uploads\/2018\/08\/Billion-Photos.jpg-pg-21.jpg\" "\\"Photo")
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You may think you are familiar with overtime pay, but did you know you may actually be owed overtime based on any commission or bonuses you make? Most employees are well versed on base pay, time and half and double time; this math is pretty straight forward. Not so if you are receiving commission or bonus pay on a regular basis. Provided you do not fall under the Salesperson Exemptions for overtime, such money should be included in the calculation of your overtime rate. For this reason, commission and piece-rate employees are a little more complicated.<\/p>\n
There are two basic ways this can be calculated, based on the situation.<\/p>\n
Number One:<\/strong> Your commissions or piece-rate will be considered your \u201cregular\u201d rate, the overtime rate is then one and a half times the money earned for any time over eight hours and two times that after twelve hours in a 24 hour period. If you are paid $15 for each piece you sell (or build), and you make two per hour, your base rate would be $30 per hour.<\/p>\n With this rate your overtime for hours 8-12 would be $45 (30 x 1.5) and hours 12+ would be $60 an hour ($30 x 2). If you have been paid overtime on just your minimum wage pay it is easy to see how you could be owed a significant sum of money.<\/p>\n Here is a second method that may be applicable to your situation:<\/p>\n Number Two:<\/strong> First add up your total earnings for the week, including commission or regular bonuses, now divide that over all your hours worked, inclusive of the overtime hours. This is your BASE rate.<\/p>\n $15 (hourly) x 50 (hours worked) + $250 (commission) = $1000 (total earnings)<\/p>\n Then the $1000 is divided by the hours worked:<\/p>\n $1000 (total weekly earnings) \u00f7 50 (hours worked) = $20 (The rounded base rate)<\/p>\n So overtime for the first four hours would be $30 ($20 x 1.5), and every hour after twelve, $40 ($20 x 2). That\u2019s a difference of $7.50 per hour if your overtime was calculated on just your base rate.<\/p>\n With penalties and interest I\u2019m sure you can see how this would add up pretty quickly.<\/p>\n Time is MONEY. Make sure you aren\u2019t giving it away. If you are entitled to overtime and you have variable income like this, you should get a second opinion and make sure you are being paid properly. In some cases such as smaller companies it may be an actual mistake, but not knowing is not an excuse for not paying. Give us a call today or fill out the form here and we will be happy to look at your situation. If you are owed money from your employer you need the right representation to collect.<\/p>\n Photo Credit: Shutterstock\/ Billion Photos<\/p>\n","protected":false},"excerpt":{"rendered":" You may think you are familiar with overtime pay, but did you know you may actually be owed overtime based […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[268,52,594],"tags":[],"class_list":["post-2141","post","type-post","status-publish","format-standard","hentry","category-class-action","category-overtime","category-wages-withheld"],"acf":[],"yoast_head":"\n
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