Did You Know? – #001
You can pay different rates for different jobs, if the work involved is objectively different.
You can pay different rates for different jobs, if the work involved is objectively different. In addition, you can pay for nonproductive time, such as time spent traveling, at a different rate. You must give employees advance notice of the lower rate.
When an employee with more than one rate of pay works overtime, you must calculate the employee’s regular rate of pay to determine the overtime rate. The method used to determine the regular rate of pay is called the weighted average method.
The regular rate will be established by adding all hours worked in the week and dividing that number into the total compensation for the week.
In the situation where an employee is paid two rates during the course of the day and one of those rates is a statutorily-mandated rate (i.e., prevailing wage), the regular rate for calculating the overtime rate for work performed on the public works project must be based on the higher of either the weighted average or the prevailing wage rate in effect at the time that the work is performed.