Many Factors Complicate Rates of Pay, Overtime Calculations (1)

Payroll professionals should be aware of common misconceptions and exceptions when calculating the regular rates of pay and overtime for employees, a payroll professional said June 23.

Workweeks

Under the federal Fair Labor Standards Act, workweeks are a consecutive seven-day period lasting 168 hours, and nonexempt employees are entitled to overtime if they work over 40 hours in a workweek, said Laurel Serra, CPP, a director of payroll training with the APA. However, notable exceptions exist for different types of workers.

Hospitals and nursing homes can use a 14-day workweek, and employees are only entitled to overtime pay if they ...