Question

John Porter is an hourly employee of Motter Company located in New York City. This week, Porter had to travel to the company's regional office in Albany. He left Sunday at noon and arrived in Albany at 3:00 P.M. During the week, he worked his normal 40 hours in the Albany office (Monday through Friday—9 A.M. to 5 P.M.). In addition, he attended the company's mandatory 4-hour work training session on Wednesday evening. Porter's hourly rate of pay is $24.80 per hour.

Calculate Porter's OT rate for the week and total earning for the week.

Answer 1

OT rate = $37.20

Total earnings = $1,252.40

Step-by-step explanation:

If the company does not provide any overtime rate policy, the over time rate should be minimum 1.5 times the hourly rate.

Therefore, Overtime rate = $24.80 × 1.5 = $37.20

Total earnings = Gross salary + Overtime salary

Hourly salary = $24.80

Total normal hours = 40 hours

Total gross salary = $24.80 × 40 = $992

Total overtime = Mandatory training session + Travelling for company

Total overtime = 4 hours + 3 hours = 7 hours (Sunday noon means 12 pm to 3 pm, total 3 additional hours)

OT salary = $37.2 × 7 hours = $260.40

Total earnings = $992 + $260.40 = $1,252.40