E-503-1.5 Proper Overtime Wage Rate: While overtime E-503-2 Overtime Wage Rates Not Including Fringe Benefits: Assuming that the Secretary of Labor has found that the prevailing practice in the area is not to pay fringe benefits for any hours worked over 8 in a day or 40 in a workweek, the following examples illustrate methods for determining the proper overtime wage rate: E-503-2.1 A laborer is paid a basic hourly wage rate of $2.00 per hour, plus $0.45 in fringe benefits. His employer makes the fringe benefit payments directly to an established program. The laborer is entitled to an overtime wage rate of one and one-half times his basic hourly rate, not including fringe benefit payments. Therefore, in this case, the proper overtime wage rate would be $3.00 ($2.00 per hour as the basic hourly wage rate plus $1.00 per hour as the overtime premium.) E-503-2.2 Under a similar situation, the employer pays $0.20 to the laborer in cash payments and $0.25 to an established fringe benefit program, making a total fringe benefit payment of $0.45 per hour as required by the applicable wage decision. Although the laborer receives $2.20 per hour in cash for all straight-time hours worked, he is still entitled to only $3.00 per hour as an overtime wage rate ($2.00 per hour as the basic hourly wage rate plus $1.00 per hour as the overtime premium. E-503-2.3 A laborer is paid a regular wage rate of E-503-2.4 In this example, the applicable wage determination requires a minimum hourly wage rate of $2.00 for laborers plus $0.45 in fringe benefit payments. The employer, in addition to paying the required $0.45 in fringes, also pays $0.20 per hour to a fringe benefit program which was not found by the Secretary of Labor to be prevailing in the area. A laborer, receiving the minimum wage rate of $2.00 per hour, is paid $1.80 per hour in cash, plus $0.65 in fringe benefit payments. Since, when computing the wage rate upon which overtime compensation is based, such rate may never be less than the minimum hourly wage rate shown on the applicable wage determination, the laborer is entitled to an overtime wage rate of $3.00 ($2.00 as the minimum hourly wage rate shown on the wage decision, plus $1.00 per hour as the overtime premium.) E-503-3 Overtime Wage Rates Including Fringe Benefits: Unless the wage determination specifies otherwise, the prevailing practice is to pay fringe benefits for any hours worked over 8 in a day or 40 in a workweek. The following examples illustrate methods for determining the proper overtime wage rate: E-503-3.1 E-503-3.2 A laborer who is paid a predetermined minimum Under a wage decision which establishes a 26 D-5(5) Preconstruction conference Subject to labor standards -- Appalachian Regional Development Act of 1965, as amended: Cited and described AM 1-10.2, paragraph 19: Reproduced see. also, Authorities Appeal of Wage Determinations: See, Wage Determinations Appeals: General Liquidated Damages (overtime violations): To Federal Highway Administrator To Secretary of Labor To the Court of Claims 123, 167 125 125 125 Apprentices: Contracting agency's duties Contracting agency's responsibilities Defined Division Engineer's duties Employment of: general Laborers and helpers distinguished Manpower training programs Poverty programs Preconstruction conference Ratios - Registration evidence Secretary of Transportation skill training programs Violations Wage rates for Youth opportunity programs Area Wage Determinations: see Wage Determinations Assembly Yards: see Site of the Work Authorities: AM 1-10.2, paragraph 19: reproduced FHWA Order 1-2, paragraphs 2 and 3: reproduced FHWA Order 1-2.7, paragraphs 2, 3: reproduced Defined Described Batch Plants: see, Site of the Work Borrow Pits: Construction activities see also, subheading under Offsite Construction Activities Building or Work: Defined |