1.5 Hourly Pay, Salary and Overtime

Notes

Employers pay workers in different ways.

• Hourly wage: pay = hourly rate times hours worked.
• Salary: a fixed amount per year, split into equal paychecks.
• Overtime: many hourly workers earn extra pay for hours beyond 40 per week, often time and a half ($1.5 \times$ the regular rate).
• A commission is pay based on sales; a tip is extra money from customers.
• Example: $12 per hour for 40 hours is $480. Overtime for 6 extra hours at time and a half is $6 \times 12 \times 1.5 = 108$, so $108. Total $588.
• A $52,000 salary paid every two weeks (26 checks) gives $\displaystyle \frac{52000}{26} = 2000$ gross per check.