OT and Regular Rate of Pay [CA]
Hi everyone. My company has a sales department which earns hourly plus commission. I need some assistance with calculating regular rate of pay (RRP) and applying this appropriately to our OT hours.
Our lawyer gave us the formula: regular rate x 40 + commission / 40 hours = RRP
and I know OT is determined by workweek, so the OT premium should be allocated by each workweek containing total sales and earnings
Our situation is unique: we have a semi monthly pay period with certain commission calculable at time of sale and other at month end.
my question is, how do we go about paying this out appropriately? I see a lot of mixed things everywhere, from DLSE opinion letters to reddit. Thank you!