The Question read as follows \" If an employee works two jobs at two different w

Question

The Question read as follows

" If an employee works two jobs at two different wage rates for the same employer during the same pay week, any overtime pay must be calcu­lated by using an overtime hourly rate of:"

The correct answer according to the Exam is "None of the Above". Any anyone provide guidance in understanding this concept? I found that this question was the most wide spread amongst all of the students answers submitted. So, let's open it up for discussion. I want to know not just why the answer is wrong but what the correct answer is in a thorough explanation.

Professor Negrete See question below: If an employee works two jobs at two different wage rates for the same employer during the same payweek, any overtime pay must be calcu­lated by using an overtime hourly rate of: a. one and one-half the higher of the two wage rates. b. one and one-half the lowest of the two wage rates. c. one-half of the higher of the two wage rates. d. one-half of the two rates combined. e. none of the above.

Explanation / Answer

In the situation of an employee who works two different jobs at two different rates of pay, the FLSA allows two different methods of computing the regular rate for overtime calculation purposes: 1) the weighted average and 2) the regular rate associated with the job that caused the overtime to occur. The "default method" under the regulations is the weighted average method, The other method is allowed under section 207(g)(2) of the Act and is explained in regulation

Where an employee in a single workweek works at two or more different types of work for which different non-overtime rates of pay (of not less than the applicable minimum wage) have been established, his regular rate for that week is the weighted average of such rates. That is, his total earnings (except statutory exclusions) are computed to include his compensation during the workweek from all such rates, and are then divided by the total number of hours worked at all jobs

(a) Under section 7(g)(2), an employee who performs two or more different kinds of work, for which different straight time hourly rates are established, may agree with his employer in advance of the performance of the work that he will be paid during overtime hours at a rate not less than one and one-half times the hourly non-overtime rate established for the type of work he is performing during such overtime hours. No additional overtime pay will be due under the act provided that the general requirements set forth are met and;

(1) The hourly rate upon which the overtime rate is based on a bona fide rate;

(2) The overtime hours for which the overtime rate is paid qualify as overtime hours under section 7(e) (5), (6), or (7); and

(3) The number of overtime hours for which the overtime rate is paid equals or exceeds the number of hours worked in excess of the applicable maximum hours standard.

(b) An hourly rate will be regarded as a bona fide rate for a particular kind of work if it is equal to or greater than the applicable minimum rate therefore and if it is the rate actually paid for such work when performed during non-overtime hours.

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