Also known as time-and-one-half. A term used in conjunction with overtime pay when an employee gets a 50% higher pay rate for hours in excess of 40 hours per week. The “half” is also known as the overtime premium. For example, an employee earning $8 per hour is required to work 41 hours this week. The employee will earn $320 for the first 40 hours ($8 times 40) plus $12 (150% of $8) for the 41st hour – for a total of $332. The total can also be computed as 41 hours times the straight-time rate of $8 = $328 plus the $4 overtime premium (the half of $8) for a total of $332. To learn more, see Explanation of Payroll Accounting.
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