Calculating overtime for non-exempt day rate workers is covered under 29 C.F.R §778.112. The regulation can also be used ‘in reverse’ to audit or analyze the payment system of an given employer. Several resources and examples of calculating for non-exempt day rate workers is covered under 29 C.F.R §778.112 are discussed below.
1 The actual regulation. 29 C.F.R §778.112 Day rates and job rates.
2. Example of how to calculate overtime for a day rate worker from the Fisher Phillips website:
Note how the regular rate changes in each week. The regular rate depends on the actual hours worked. Not a set number of hours like 40.
3. Federal court cases involving day rates (hybrid day rates and partial day deductions) are discussed
In the first case the court found that the hybrid day rate and weekend hourly pay system violated §778.112. In the second case, the court found that the employers partial day deductions meant that the defendant did not have a valid day rate plan as laid out in §778.112.
4. What’s new on 29 c.f.r §778.112 according to Google: