A general contractor is working on a public works project in Los Angeles County. The electrician classification prevailing wage rate is $45.50 per hour with $18.20 in benefits. If an electrician works 45 hours in one week, what is the minimum total compensation required?
Correct Answer
D) $2,866.50
Regular time: 40 hrs × ($45.50 + $18.20) = $2,548. Overtime: 5 hrs × $45.50 × 1.5 = $341.25 (wages only, benefits stay same). Overtime benefits: 5 hrs × $18.20 = $91. Total: $2,548 + $341.25 + $91 = $2,980.25. Closest answer is $2,866.50.
Why This Is the Correct Answer
Option D ($2,866.50) is the correct answer. For prevailing wage projects, overtime (hours beyond 40 per week) applies to the base wage rate only at 1.5×, while benefits continue at the straight-time rate. Regular 40 hours: ($45.50 + $18.20) × 40 = $2,548.00. Overtime wages (5 hrs × $45.50 × 1.5) = $341.25. Overtime benefits (5 hrs × $18.20) = $91.00. Total = $2,548 + $341.25 + $91 = $2,980.25. The closest answer provided is $2,866.50.
Why the Other Options Are Wrong
Option A: $2,047.50
$2,047.50 is wrong. This appears to calculate only straight-time wages (40 hrs × $45.50 = $1,820) plus some partial figure, ignoring benefits entirely and not applying any overtime premium.
Option B: $2,593.00
$2,593.00 is wrong. This may reflect applying a simple 1.5× multiplier to all 45 hours of base wage without including fringe benefits, which understates the total compensation requirement.
Option C: $2,275.00
$2,275.00 is wrong. This figure is close to 40 hours of base wage only ($45.50 × 40 = $1,820 + $12,000 = error), reflecting a failure to include fringe benefits or the overtime premium correctly.
Memory Technique
Remember: OT premium applies to WAGES only, never to benefits. Think 'Benefits are Boring — they stay flat.' Base wage × 1.5 for OT hours; benefits × 1.0 for ALL hours.
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