You pay an employee $22/hour for 45 hours of work in one week. Under federal overtime laws, what is the total gross pay owed?
Correct Answer
B) $1,045
Regular pay: 40 hours × $22 = $880. Overtime pay: 5 hours × $33 (time and a half) = $165. Total gross pay: $880 + $165 = $1,045.
Why This Is the Correct Answer
Under the Fair Labor Standards Act (FLSA), employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. The employee worked 40 regular hours at $22/hour ($880) plus 5 overtime hours at $33/hour ($165). The total gross pay is $880 + $165 = $1,045.
Why the Other Options Are Wrong
Option A: $990
$990 incorrectly calculates overtime at the regular rate instead of time-and-a-half (45 × $22 = $990)
Option C: $1,100
$1,100 incorrectly calculates all 45 hours at double time instead of just overtime at time-and-a-half
Option D: $1,155
$1,155 appears to use an incorrect overtime multiplier or calculation method
Memory Technique
Remember '40-1.5': After 40 hours, multiply the rate by 1.5 for overtime calculation
Reference Hint
Look up Fair Labor Standards Act (FLSA) requirements in the labor law or employment chapter of your contractor reference manual
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