Which statement about overtime pay rates is correct?

Which statement about overtime pay rates is correct?

• A. Overtime hours are paid at less than regular rate.
• B. Overtime hours are paid at least at time and a half the regular rate.
• C. Overtime hours are paid only as a fixed premium regardless of hours.
• D. Overtime hours are paid at double time only after 60 hours.

Answer: (B)

Overtime pay is the higher rate workers receive for hours worked beyond the standard workweek. For non-exempt workers, the rule is that overtime hours are paid at least 1.5 times the regular rate once you pass the weekly threshold. The regular rate is what you normally earn per hour, and it can include other compensation that is part of the weekly pay. This means that if your regular rate is $20 per hour, overtime should be at least $30 per hour for each overtime hour. Some jurisdictions or contracts may require higher rates or different thresholds, and some employees are exempt from overtime altogether, but the basic standard is time and a half for overtime. The other statements misstate how overtime works: it isn’t paid at a rate lower than the regular rate, it isn’t a fixed premium that applies the same regardless of hours, and double-time after 60 hours is not the universal rule.

Overtime pay is the higher rate workers receive for hours worked beyond the standard workweek. For non-exempt workers, the rule is that overtime hours are paid at least 1.5 times the regular rate once you pass the weekly threshold. The regular rate is what you normally earn per hour, and it can include other compensation that is part of the weekly pay. This means that if your regular rate is $20 per hour, overtime should be at least $30 per hour for each overtime hour. Some jurisdictions or contracts may require higher rates or different thresholds, and some employees are exempt from overtime altogether, but the basic standard is time and a half for overtime. The other statements misstate how overtime works: it isn’t paid at a rate lower than the regular rate, it isn’t a fixed premium that applies the same regardless of hours, and double-time after 60 hours is not the universal rule.