Overtime is paid at the rate of time and one half after forty hours of actual work in a seven-day workweek, with the exception of certain salaried employees who meet the definition of an executive, administrative or professional.
Overtime must be paid at a rate of time and one-half times the employee's regular rate of pay for each hour actually worked in excess of 40 hours in the workweek.
Overtime pay is only required for actual hours worked over 40. Overtime must be paid at a rate of time and one-half times the employee's regular rate of pay for each hour actually worked in excess of 40 hours in the workweek.
If an employee wants to work overtime (in excess of 40 hours in the workweek) and will accept straight time, the employee and employer cannot waive the right to overtime pay, because the employee and the employer cannot mutually agree to violate the law.
The overtime rate for a worker who has two or more job titles with different hourly rates is calculated by using the weighted averaged method. The total gross wage is divided by the total number of hours worked to obtain the average hourly rate. The average hourly rate is then divided in half to determine the additional premium (half-time) rate due the employee.
Example:
An employee does clerical work for $10.00 per hour and is also a hostess for $7.75 per hour. The employee works 30 hours at $10.00 per hour and 16 hours at $7.75 per hour for a total of 46 hours during the week. The overtime rate due the employee is calculated as follows:
30 hours x $10.00 per hour = $300.00
16 hours x $7.75 per hour = $124.00
Total gross = $424.00
The total gross ($424.00) is divided by the total hours (46) to obtain the average hourly rate. The average hourly rate is $9.22 per hour.
The employee is still due the additional premium pay (half-time) for the 6 overtime hours. The average hourly rate ($9.22) is divided in half. The half-time rate is $4.61.
6 overtime hours x $4.61 = $27.66
The $27.66 (premium pay) is added to the original gross amount of $424.00. The new gross amount is $451.66. This is the amount that must be paid to the employee for the week.
You can require an employee to work overtime provided you pay the appropriate wages and do not violate any existing employer-employee collective bargaining agreement. However, there are special regulations involving health care workers and mandatory overtime. Detailed information is available at the web site listed below.
http://www.nj.gov/labor/lsse/lshlthcarefaq.html
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