Mass-Peculiarities: An Employers Guide to Wage & Hour Law in the Bay State 2022 Edition

© 2022 Seyfarth Shaw LLP Massachusetts Wage & Hour Peculiarities, 2022 ed. | 75 for each week would be $1375.00 ($1000.00 regular hourly compensation, plus $250.00 in bonus, plus $125.00 in overtime). Method 2: Alternatively, the employer may calculate the employee’s straight- time pay and overtime as it ordinarily would, that is, by multiplying the regular hourly rate by 40 hours to obtain the employee’s straight-time pay ($20.00 x 40 hours = $800.00), and by multiplying the employee’s overtime hours by 1.5 times the employee’s regular rate to obtain the employee’s regular overtime pay ($20.00 hour x 1.5 x 10 hours = $300.00). Additional overtime allocable to the bonus would then be calculated by dividing the bonus by the total number of hours worked each week ($250.00 ÷ 50 hours = $5.00), then multiplying that amount by .5, and then multiplying that by the number of overtime hours ($5.00 x .5 x 10 hours = $25.00). The employee’s total compensation would be $1375.00 ($800.00 straight-time regular compensation, plus $300.00 regular overtime, plus $250.00 in bonus, plus $25.00 in overtime pay allocable to the bonus). 8. Calculation of the Regular Rate for an Employee Paid by a Method Other Than an Hourly Rate a. Piecework An employee who is paid on the basis of a piece rate for work performed is entitled to overtime under both Massachusetts and federal law. The regular rate for piecework can be computed in either of two ways: Method 1: The regular rate may be determined by dividing the total weekly earnings by the total weekly hours worked. 417 Method 2: The regular rate may be the same as the straight-time piece rates in effect during overtime hours, provided that (1) the employee consents; (2) the piece rate is bona fide; and (3) the employee receives one and one-half times this piece rate for overtime hours worked. 418 Example Method 1: An employee’s straight-time workweek is 40 hours. The employee works 45 hours and receives total earnings of $900.00. The employee’s regular rate is $20.00 per hour ($900.00 ÷ 45 hours = $20.00 per hour). Thus, for the 5 overtime hours worked, the employee is entitled to an additional $50.00 dollars (.5 x $20.00 per hour x 5 hours = $50.00). The employee’s weekly wage is $950.00. 417 29 C.F.R. § 778.111. 418 29 C.F.R. § 778.418.