Here, at last, is the email response to the OT questions.  I haven't had a 
chance to study it, but I am sending it "hot off the press"  upon receipt by 
me.  

Let's discuss if there are any problems. 

Michelle


------------------------------------------------------------------------------
---------------------------

Michelle Cash
Enron North America Corp.
1400 Smith Street, EB 3823
Houston, Texas  77002
(713) 853-6401
michelle.cash@enron.com

This message may contain confidential information that is protected by the 
attorney-client and/or work product privileges.
----- Forwarded by Michelle Cash/HOU/ECT on 06/21/2000 04:14 PM -----

	"Thomson, Mary Lee" <MLThomson@LITTLER.com>
	06/21/2000 04:06 PM
		 
		 To: "'Michelle Cash'" <michelle.cash@enron.com>
		 cc: "Notestine, Kerry" <KNotestine@littler.com>
		 Subject: Overtime Calculations



As we discussed on the telephone last week, the federal Fair Labor Standards
Act and Department of Labor regulations prescribe the calculation of the
regular rate of pay for overtime pay calculation.  Shift differentials and
other adjustments for working particular hours or on particular tasks are
included in the regular rate of pay.  If, as set forth in the e-mail
forwarded to me from Kerry, an employee is paid a shift differential for
night shift work, that differential becomes part of the regular rate of pay
for the night shift work.  If the same employee rotates between day and
night shifts, she/he will be working at two different rates of pay.  This is
acceptable but poses special issues for the calculation of overtime.

Federal law permits two methods of calculating overtime for employees who
work at two (or more) different regular rates of pay.  Employers may use
either a weighted average (29CFR 778.115) or a rate-in-effect (29CFR
778.419) calculation.

l. Weighted Average Calculation

This calculation involves add multiplying the number of hours worked in a
workweek at rate 1 times rate 1 and adding the sum to the number of hours
worked at rate 2 times the number of hours worked at rate 2.  The sum is
then divided by the total number of hours worked to obtain the weighted
average regular rate paid for each hour worked.  Overtime premiums of 1/2
the weighted average regular rate are then paid to bring the overtime rate
to 1.5 times the weighted average regular rate.   If, as in California,
double time rates apply, the premium would be one times the weighted average
regular rate.

Example:

Employee works four 8-hour day shifts at $10 per hour and two 8-hour night
shifts with a shift premium of $! per hour within the same workweek.

The weighted average calculation would be:

32 (hours) times 10 (dollars) plus 16 (hours) times 11 (dollars) = 496
(dollars)

496 (dollars) divided by 48 (hours) = $10.33 (the weighted average regular
rate)

1/2 of $10.33 = $5.17 (the additional overtime premium due for each overtime
hour worked).

The weekly pay for this employee would be:

$584.00 for straight time
$ 41.36 for overtime premium
or

$625.36 for the week.


2. Rate-in-effect
With this method, the overtime pay is calculated at the rate in effect at
the time the overtime is worked.

In the above example, if the last 8 hours of the week were worked on a day
shift, the overtime rate would be 1.5 x $10 or $15 and the employee would be
entitled to $120 in overtime pay.  If the last shift was worked on the night
shift, the overtime rate would be 1.5 x $11 or $16.50 and the employee would
be due $130 in overtime pay.

Please note: These are the federal standards.  State law must also be
considered, since the employee is entitled to the most favorable provision
is there is a conflict.  For example, California does not permit the use of
the rate-in-effect method; employees who work at different rates must be
paid on the weighted average overtime pay calculation.

I hope this is helpful.  Please do not hesitate to call if you questions or
need clarification.
Mary Lee Thomson
Sacramento, CA


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