What is the gross pay for a non-exempt employee paid $400 per week regardless of hours, who works 60 hours in a workweek?

What is the gross pay for a non-exempt employee paid $400 per week regardless of hours, who works 60 hours in a workweek?

• A. $400.00
• B. $700.50
• C. $840.00
• D. $1,000.00

Answer: (B)

Non-exempt workers must receive overtime pay at 1.5 times their regular hourly rate for hours worked beyond 40 in a workweek. Here, the weekly amount of $400 is guaranteed for 40 hours, so the regular rate is $400 divided by 40, which is $10 per hour. The employee works 60 hours, so there are 20 overtime hours. Overtime pay is 1.5 times the regular rate: $10 × 1.5 = $15 per overtime hour. Overtime earnings: 20 × $15 = $300. Total gross pay for the week = base $400 + overtime $300 = $700. This is why the correct total is $700.

Non-exempt workers must receive overtime pay at 1.5 times their regular hourly rate for hours worked beyond 40 in a workweek. Here, the weekly amount of $400 is guaranteed for 40 hours, so the regular rate is $400 divided by 40, which is $10 per hour. The employee works 60 hours, so there are 20 overtime hours. Overtime pay is 1.5 times the regular rate: $10 × 1.5 = $15 per overtime hour. Overtime earnings: 20 × $15 = $300. Total gross pay for the week = base $400 + overtime $300 = $700. This is why the correct total is $700.