Overtime is something that most workers look to getting throughout the year. While it may seem like a simple concept of paying workers more money for working more than a traditional 40 hour week, that’s not all it comes down to. Any Los Angeles workplace lawyer will reveal that California law regarding payment of overtime to employees is very specific.
When Does Overtime Need To Be Paid?
Your unpaid commissions lawyer Los Angeles knows that general overtime should be paid in the event of three scenarios. First, any nonexempt employee should be paid a time and a half if they work more than eight hours in a single workday. Second, they should be paid the same rate if they work in excess of 40 hours in a single workweek. Lastly, the employee should be paid double their regular rate of pay if they work more than 12 hours in a single day. While this seems fairly clearcut, there are some exemptions that you should talk with your Los Angeles commission dispute attorney to learn more about.
What Is The Overtime Calculation For Hourly Rate?
A sales commission lawyer Los Angeles can help you to determine what the overtime rate will be for any of your employees. To determine this number, they’ll need to know what each employee’s regular rate of pay is. This is considered the average of an employee’s pay spread across all hours worked during the entire workweek. Some exemptions from this rate calculation include vacation days, holidays, sick pay, and discretionary bonuses. Your employment attorney Los Angeles will be able to assist you in determining what types of compensation make up regular pay and which ones don’t.
A Look At Different Types Of Employees
There are three main categories of employee payment systems. These include hourly employees, salary employees, commission or piece rate employees. Any unpaid commission lawyer Los Angeles can assist you in determining just what type of employees you have on your pay schedule. In general, determining the regular pay rate for employees paid by the hour is done by dividing the total paycheck by the total hours worked.
When it comes to employees on salary, the calculation is more involved. You’ll take the annual salary of the employee and divide it by 52 to get their weekly salary. Next, you’ll take this weekly salary amount and divide it by 40 hours to get that employee’s regular rate of pay. You can enlist the help of a sales commission lawyer Los Angeles to get this regular rate of pay number if you need to.
Lastly, the commission or piece rate employee’s regular rate of pay can be determined using one of two methods. First, you can divide their total earnings over a week period by the number of hours they worked. You’ll have to give special attention to overtime hours as they should receive an additional one and a half of their regular rate. The second method is to simply use their commission rate as their regular rate of pay. Overtime should be paid one and a half times their commission rate. Any Los Angeles commission dispute attorney will tell you that businesses tend to prefer the first method over the second for their calculations.
