Friday, June 09, 2006

Calculating The Regular Rate Under the Maryland Wage and Hour Law for Employee Working Two Jobs For the Same Employer

Assume an employee works two totally unrelated jobs for the same employer:

Job 1: 40 hours per week @ $10.00 per hour (for a total of $400).

Job 2: 20 hours per week @ $7.00 per hour (for a total of $140).

Maryland's overtime regulations state:

1. An employee . . . shall be paid overtime compensation for each hour worked in excess of 40 hours per workweek. This includes . . All hours worked by an employee for an employer are included, even though the employee may perform work in two or more unrelated jobs.

2. The regular hourly rate is determined by dividing the total compensation for employment in any workweek by the total number of hours worked in that workweek.


Hence, to calculate the regular rate in the example above, divide the total number of hours by the total compensation: 60 hours/$440=$7.33 per hour.

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