What is the gross pay of a non-exempt employee who works 45 hours during a holiday week, and receives 8 hours additional pay for the holiday? The employee earns $12.50 per hour.

What is the gross pay of a non-exempt employee who works 45 hours during a holiday week, and receives 8 hours additional pay for the holiday? The employee earns $12.50 per hour.

• A. $693.75
• B. $666.25
• C. $700.00
• D. $720.00

Answer: (A)

Non-exempt workers get overtime pay for hours over 40 at 1.5 times the regular rate. Here the regular rate is $12.50. For 40 hours, regular earnings are 40 × 12.50 = 500. The 5 overtime hours (45 total worked minus 40) are paid at 1.5 × 12.50 = 18.75 per hour, totaling 5 × 18.75 = 93.75. The 8 hours of holiday pay are paid at the regular rate, 8 × 12.50 = 100. Add them up: 500 + 93.75 + 100 = 693.75. So the gross pay is 693.75.

Non-exempt workers get overtime pay for hours over 40 at 1.5 times the regular rate. Here the regular rate is $12.50. For 40 hours, regular earnings are 40 × 12.50 = 500. The 5 overtime hours (45 total worked minus 40) are paid at 1.5 × 12.50 = 18.75 per hour, totaling 5 × 18.75 = 93.75. The 8 hours of holiday pay are paid at the regular rate, 8 × 12.50 = 100. Add them up: 500 + 93.75 + 100 = 693.75. So the gross pay is 693.75.