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Jul03

Different jobs in same Co. -different pay?

Can an employee be paid two different hourly rates for two different jobs at different skill levels in the same company?

Yes, an employee can be paid two different hourly rates for different jobs. However, the employee is still entitled to overtime if he works more than 40 hours total in the payroll week — and that overtime must be paid at 1.5 times his or her average hourly rate, even if the employee is performing the lower-paid work at that time. (Of course, each rate must be more than the applicable minimum wage.)

Example: Suppose Juan makes $20 per hour as a hotel front desk supervisor, and also works as a bellman at the same hotel, earning $10 per hour. Juan works 25 hours as front desk supervisor this week, and then works an additional 25 hours as bellman, for 50 hours total. Juan is entitled to 10 hours of overtime. His average rate for the payroll week is $15 per hour, so he is entitled to 10 hours of overtime at $22.5 per hour (1.5 times $15 per hour.) This is true, even though Juan was working at the $10 per hour job when he clocked more than 40 hours.

 

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This entry was posted on Saturday, July 3rd, 2010 at 1:13 pm and is filed under
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One Response to “Different jobs in same Co. -different pay?”

  1. » Different jobs in same Co. -different pay? Human Resource Blog « Human Resources 123 Says:

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