A common question is how to calculate overtime where the employee is paid by the piece, instead of being paid by the hour?
To determine your overtime rate when being paid by the “piece,” you must first determine your regular hourly rate. This calculation is done by dividing all of your earnings (pieces, commissions, incentive bonus) by the total hours worked in that specific work week. After you do this calculation, multiply the number that you arrived at by .5, then multiply by the number of overtime hours worked. This would give you your overtime for the week.
Should you have any questions, please feel free to contact our office at 800-417-2008.