Calculate the gross pay under the FLSA given the following: hourly rate $8.00, production bonus $25.00, shift differential $0.25 per hour, and 44 total hours worked.

• A. $405.64
• B. $380.64
• C. $377.00
• D. $404.50

Answer: (A)

When figuring overtime under FLSA, you pay hours over 40 at 1.5 times the regular rate, and that regular rate must include all non-discretionary pay items like shift differential and any non-discretionary bonuses.

First, determine the regular rate by pooling all compensation that counts toward regular pay for the week and dividing by total hours worked. Here, that includes the base wages for all hours, the shift differential for all hours, and the non-discretionary production bonus:

• Base wages for 44 hours: 44 × 8.00 = 352.00

• Shift differential for 44 hours: 44 × 0.25 = 11.00

• Non-discretionary production bonus: 25.00

Total compensation excluding overtime = 352.00 + 11.00 + 25.00 = 388.00

Regular rate R = 388.00 / 44 = 8.8181818 (about 8.818)

Pay for the first 40 hours at the regular rate: 40 × 8.818 ≈ 352.727

Overtime pay for 4 hours at 1.5 × regular rate: 4 × 1.5 × 8.818 ≈ 52.909

Total gross pay ≈ 352.727 + 52.909 ≈ 405.64

So the gross pay comes to about $405.64. The production bonus is included in the regular rate calculation, causing the overtime rate to reflect that bonus as part of the regular earnings.