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You are here: Experts > Jobs/Careers > Human Resources > Human Resources > Overtime rate
Expert: Thomas R. Ballas - 11/2/2009
Question
Example: Employee accrues 10 hours of overtime for the pay period ending Sept 30th and his current wage is $10.00 an hour. On October 1st his wage goes to $11.00 an hour and the employee decides to pay the overtime off in Oct, is the rate at the 1.5 times when the hours when earned or when paid? 1.5 time $10 or $11
Thank your
Answer
David:
Absent a collective bargaining agreement or employment agreement that addresses the issue, most employers will pay the rate in effect when the payout is made, not the amount in effect when it was accrued. In this case, the $11.00.
Tom Ballas
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