Piece Rate Pay and Overtime
Piece rate workers earn a fixed amount per unit produced (e.g., $0.50 per part, $2/sq ft of installation). For overtime purposes: calculate total straight-time earnings (pieces × rate for all hours), divide by total hours worked to get the regular rate, then add 0.5× the regular rate × overtime hours as the overtime premium.
Marcus assembles widgets at $3.00 each. This week he assembled 300 units in 50 hours. Straight-time earnings: 300 × $3.00 = $900. Regular rate: $900 ÷ 50 = $18/hr. Overtime premium: $18 × 0.5 × 10 OT hours = $90. Total gross: $900 + $90 = $990. Without the overtime premium: Marcus would earn $900 — the employer owes him $90 more.
Multiple Classification Rates in Construction
Construction workers often work under multiple classifications in the same week (laborer at $28/hr, equipment operator at $38/hr). The weighted average method: total straight-time earnings ÷ total hours worked = regular rate. Overtime premium = regular rate × 0.5 × overtime hours. Both hourly components are reflected in the weighted average regular rate.
Multiple classification rate overtime calculation
| Job Classification | Hours | Rate | Earnings |
|---|---|---|---|
| Laborer | 24 hours | $28/hr | $672 |
| Equipment operator | 20 hours | $38/hr | $760 |
| Total straight-time | 44 hours | — | $1,432 |
| Regular rate | — | $1,432 ÷ 44 = $32.55/hr | — |
| Overtime premium | 4 OT hours | $32.55 × 0.5 = $16.28/hr | $65.11 |
| Total gross pay | — | — | $1,497.11 |
Prevailing Wage and Overtime
Federal prevailing wage jobs (Davis-Bacon Act) set minimum hourly rates for construction trades on public contracts. Overtime rules still apply: workers on prevailing wage jobs must receive 1.5× their prevailing wage rate for overtime hours. If the prevailing wage is $55/hr for electricians: overtime rate is $82.50/hr. The prevailing wage is the floor; market wages may be higher.
Donning and Doffing: When Prep Time Is Work Time
Putting on and taking off required safety equipment (donning and doffing) is often compensable work time in manufacturing and construction. Time required to don protective gear before the shift and doff it after is work time that counts toward overtime. If this daily 15-minute activity puts you over 40 hours/week, it must be compensated at overtime rates.
Calculate Piece Rate or Multiple Rate Overtime
Enter your total weekly earnings and hours to calculate the correct regular rate and overtime premium.