In the United States and plenty of different international locations, there’s a normal work-week size, sometimes 40 hours on the job; if an employer desires an worker to work longer than 40 hours in a given week, they have to pay what known as “time and a half” wages.
Simply put, they obtain their regular wage in the course of the first 40 hours of a piece week, however as soon as they attain 40 hours of labor, they begin receiving pay on the fee of time-and-a-half, or one-and-a-half instances their common wage.
Suppose Sue, an workplace employee in Washington state, earns $15/hr, and works 55 hours in a given week. Washington requires corporations to pay employees on the fee of “time and a half” in the event that they work greater than 40 hours in a given week. How a lot will Sue make this week?
We know she works 55 hours; the primary 40 hours are calculated at her common wage of $15/hr, and the remaining 15 hours are calculated on the “time and a half” wage, ie: one and a half instances her common $15/hr wage. We can pop this into the calculator: 15 instances 1.5 = $22.50. So for the ultimate 15 hours of her work week, Sue makes $22.50/hr.
So how a lot does she make in complete?
For her first 40 hours, she makes $15/hr: that is 40 instances 15, or $600.
For the final 15 hours, she makes $22.50/hr: that is 15 instances 22.50, or $337.50.
In complete, due to this fact, she makes $600 + $337.50, or $937.50.
Notice how the final 15 hours, Sue made almost two-thirds of the pay throughout her first 40 hours, so time-and-a-half actually does repay in Sue’s case.
Let’s undergo one other instance: suppose Bill works as a machinist and earns $20/hr. If Bill pulls in a 65 hour work week whereas his firm delivers a big order, how a lot will he earn that week?
Note that Bill works his first 40 hours on the fee of $20/hr, and the ultimate 25 hours on the time-and-a-half fee, 1.5 instances 20, or $30/hr.
So for the primary 40 hours, Bill makes 40 instances 20 = $800.
And for the following 25 hours, Bill makes 25 instances 30 = $750.
So in complete, Bill makes $800+$750=$1550.
Again – Bill makes almost the identical quantity of pay in his 25 hours of extra time, as he did throughout his 40 hours of standard time work. That’s why staff love extra time and executives hate it!