What is coefficient overtime?

When an employee works more than a certain number of hours a day or week, he typically receives extra pay called “overtime.” He also may receive extra pay when he works on a holiday or under unusual conditions. When an employee earns more than his usual pay rate, he receives coefficient pay.

Simply so, what is the difference between overtime and coefficient overtime?

To calculate coefficient overtime you divide the weekly salary amount by the actual number of hours in given work week. You then establish an effective hourly rate and pay overtime based upon that variable rate per week. Both are legal ways to pay salaried nonexempt employees overtime.

Furthermore, who must pay overtime? Overtime Pay. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.

Similarly one may ask, how do you calculate overtime pay?

Overtime pay is calculated: Hourly pay rate x 1.5 x overtime hours worked. Here is an example of total pay for an employee who worked 42 hours in a workweek: Regular pay rate x 40 hours = Regular pay, plus. Regular pay rate x 1.5 x 2 hours = Overtime pay, equals.

What is a blended overtime rate?

The federal government’s Fair Labor Standards Act requires that when work is performed at two or more rates, overtime must be paid out at a blended rate. A “blended rate” is a rate of not less than one-and-a-half times the weighted average of all non-overtime rates used during that workweek.

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