Accounting, Payroll & Pension Issues/Overtime rates


I work for a company that provides in-home caregivers for the elderly. When new caregivers are hired, they are told they will be paid $11.00/hr. Until recently, caregivers in California were exempt from overtime pay. Under the new law they are supposed to be paid OT for any hours over 9 hours in one day.

What my boss is doing is figuring what a caregiver would be paid for a shift at $11.00/hr with no OT, and using that as a "target amount". The caregivers are then paid $9.00/hr for the first 9 hours and $13.50/hr for the remaining hours. They are then given a "bonus" to bring the total to the "target amount".

For example: if a caregiver works a 12 hour shift at $11.00/hr with no OT pay, the total would be $132.00. Following OT rules based on that $11.00/hr, they would make $99.00 for the first 9 hours (9 * 11) and $49.00 for the remaining 3 hours (3 * 11 * 1.5) for a total of $148.50. But what my boss does is pay them $81 for the first 9 hours (9 * 9) and $40.50 for the remaining 3 hours (3 * 9 * 1.5) and then a "bonus" of $10.50 for a total of $132.00.

Again, new employees are told they will be making $11.00/hr, and they would naturally assume that any overtime pay will be based on that rate. Is this legal?

This is not right. If they are paid 11:00 they should be paid 16.50 for overtime.  So if they work 12 hours they should be paid 11 X 9 which is 99.00 and then 3 X 16 which is 48.00 for a total of  99.00 + 48.00 = 147.00.

Their way of figuring is not legal and should be brought to the attention of the Department of labor in your area. they will investigate and will make them pay correctly.


Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR


I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.


25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.


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