An employee is paid $10 per hour plus a 10% differential for evening shifts. During the past week, the employee worked 24 hours on the day shift and 24 hours on the evening shift. Under the FLSA, what are the employee's gross wages for the week?

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Multiple Choice

An employee is paid $10 per hour plus a 10% differential for evening shifts. During the past week, the employee worked 24 hours on the day shift and 24 hours on the evening shift. Under the FLSA, what are the employee's gross wages for the week?

Explanation:
Under the FLSA, overtime is paid at 1.5 times the employee’s regular rate for hours over 40 in a workweek. The regular rate is the average hourly earnings for the week, including shift differentials, but excluding the overtime premium. First find the regular rate: add up all earnings for the week at their regular rates and divide by total hours worked. Day hours: 24 × $10 = $240. Evening hours: 24 × $11 = $264. Total regular earnings = $504 for 48 hours. Regular rate = $504 / 48 = $10.50 per hour. Overtime hours are 8 hours (since 48 total minus 40 standard). The overtime premium per hour is 0.5 × regular rate = 0.5 × $10.50 = $5.25. Overtime premium for 8 hours = 8 × $5.25 = $42. Total gross wages = regular earnings for all hours ($504) + overtime premium ($42) = $546. So the weekly gross wages are $546.

Under the FLSA, overtime is paid at 1.5 times the employee’s regular rate for hours over 40 in a workweek. The regular rate is the average hourly earnings for the week, including shift differentials, but excluding the overtime premium.

First find the regular rate: add up all earnings for the week at their regular rates and divide by total hours worked. Day hours: 24 × $10 = $240. Evening hours: 24 × $11 = $264. Total regular earnings = $504 for 48 hours. Regular rate = $504 / 48 = $10.50 per hour.

Overtime hours are 8 hours (since 48 total minus 40 standard). The overtime premium per hour is 0.5 × regular rate = 0.5 × $10.50 = $5.25. Overtime premium for 8 hours = 8 × $5.25 = $42.

Total gross wages = regular earnings for all hours ($504) + overtime premium ($42) = $546.

So the weekly gross wages are $546.

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