The best answer to our
October 8 Quick Quiz is, "Either Of The Above". There
are two permissible ways to approach Sarah's overtime
compensation under the federal Fair Labor Standards Act. In
declining percentage order, the responses were:
"$802.50": (44.9%)
"Neither
Of The Above": (30.8%)
"$808.50": (20.5%)
"Either Of
The Above": (3.8%)
Basing Overtime On A "Weighted Average"
Rate
One alternative is to calculate her overtime premium at one-half
of the "weighted-average" regular rate of pay.
See, e.g., 29 C.F.R. § 778.115. This approach is in a sense
the standard one and is therefore probably the more-common
computation.
It calls first for totaling all of Sarah's compensation
figured at her hourly rates and then for dividing that sum by all
of her hours worked (including the ones exceeding 40 in the
workweek). The resulting weighted-average rate represents the
"one" of the "one and one-half" overtime rate
required by the FLSA. So she is due
