u/Beneficial-Task5794

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!

reddit.com
u/Beneficial-Task5794 — 3 days ago

Regular rate of pay (hourly + commission) for OT hours

Hi everyone. 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!

reddit.com
u/Beneficial-Task5794 — 3 days ago