Got this Kind of Job? You May be Getting Screwed on Overtime Pay

July 24th, 2012. By AbiK

Overtime pay calculations are tricky. And, I’m guessing, most employers can appreciate that especially when those calculations translate to less money being shelled out each pay period. Unfortunately, many employees aren’t fully aware of some considerations that need to go into how overtime pay is based. The following types of work can throw a ringer into overtime pay calculations—and if you’re doing any of these kids of jobs, it may time to double-check how much overtime pay you’ve been taking home.

1. Shift Work. If you’re working various shifts, you may be doing a graveyard shift that pays a higher rate—or, depending on your industry, one shift may pay more than another due to work volumes or time of day. These are referred to as ‘shift premiums’. The basis for your overtime rate should take that into consideration—if it’s not, it could be an overtime pay violation.

2. Non-Discretionary Bonuses. These are bonuses that you might receive based on a quota or some other metric. For example, if you receive safety bonuses based on accident- or injury-free performance, production bonuses based on output or some other measure, attendance bonuses for zero unexcused absences, guaranteed/promised bonuses, profit-sharing bonuses, or bonuses paid as a percentage of earnings—and your overtime pay calculation does not take such into consideration, it may be an overtime pay violation.

3. Paid Commissions or SPIFFs. (SPIFFs are bonuses paid when a salesperson sells a specific product—kind of like when you’re asked if you’d “like some fries with your order”—the more fries an employee sells, the greater bonus he may be entitled to). Commissions can tend vary each month or pay period—but they should be a consideration in how overtime pay is calculated.

4. Piece-Rate Work. If you’re given a monetary incentive to produce over a certain number of units, and that incentive pay is not figured in as part of the basis for your overtime pay calculation, it may be an overtime pay violation.

If you think your overtime pay has been calculated incorrectly and has not taken into consideration any non-discretionary bonus pay, incentive pay or shift premiums, an employment attorney may be able to help.

Tags: Employment, Incentive Pay, Labor Law, Non Discretionary Bonus, Overtime Pay, Wage and Hour Law, Work Bonus

This was posted on Tuesday, July 24th, 2012 at 4:09 am and is filed under Employment . Feel free to respond, or trackback. Read our comments policy.