# Hours Worked

FunHRBanker
562 Posts

A person works Monday through Saturday. They are paid a flat rate of $100 for the Saturday. If the hours wouldn't have put them into overtime (and if they did, the flat rate is more generous than time and a half), is this acceptable? Could the employee come back and say they weren't paid for the hours they worked and say it was also overtime?

I'm talking myself in circles today!

I'm talking myself in circles today!

## Comments

11 Commentssorted by Votes Date Added0Vote UpVote Down0Vote UpVote Down0Vote UpVote Down0Vote UpVote Down0Vote UpVote Down0Vote UpVote Down0Vote UpVote Down0Vote UpVote DownThanks.

0Vote UpVote DownFor example, if an employee's hourly rate is $10/hour, and he works 40 hours during the week and 5 hours on Saturday, then the employee's paycheck for that week must total at least $483.33 (read on if you're puzzled as to why it's not just $475). Since, under your system, you'd be paying the employee $500 for that week, the employee would have no claim for nonpayment of wages or failure to pay overtime, because he received at least the amount to which he was entitled for the number of hours he worked. It doesn't matter that his pay was based on a flat rate for one of the days as opposed to a hour-by-hour calculation.

Of course, this only applies if it is certain that an employee would not be entitled to more than $100 as a result of the Saturday work. According to the information in your post, that seems to be the case. However, in my example, if an employee worked 40 hours per week at $10/hour and then 8 hours on Saturday, he would be entitled to $520, so the $500 wouldn't be sufficient.

Still, it's unclear why you would want to pay employees this way. This system complicates things if you do end up paying overtime to an employee. Overtime must be paid at one and one-half times the employee's "regular rate of pay." This includes not only the employee's base hourly rate, but also the amount of any bonuses, longevity pay, shift differentials, etc. So if the employee earns overtime in a week in which he earns his $100 Saturday pay, that $100 has to be factored in to calculate the regular rate, which could then inflate that rate. For example, using the above example, the computation for an employee who works 40 hours Monday through Friday, then works 5 hours on Saturday would have to be based on 40 hours at $10/hour, and 5 hours at $20/hour (100/5). That means that the regular rate of pay would be ((40*$10) + 5*$20)) / 45, or ($400 + $100 )/ 45, or $11.11/ hour. Which means that the employee would be entitled to $16.67 for each hour worked over 40, rather than $15. I suppose that doesn't matter if you're paying the employee $100 for Saturday anyway, but it may change the analysis somewhat with respect to whether the $100 is always going to be more generous than the amount the employee would get at the overtime rate.

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