An employee works 45 hours at $25/hour regular rate. Calculate the gross pay including overtime at time-and-a-half for hours over 40.
Correct Answer
B) $1,187.50
Regular pay: 40 hours × $25 = $1,000. Overtime pay: 5 hours × $37.50 (1.5 × $25) = $187.50. Total gross pay = $1,000 + $187.50 = $1,187.50.
Why This Is the Correct Answer
Option B correctly applies the Fair Labor Standards Act (FLSA) overtime calculation. The employee worked 40 regular hours at $25/hour ($1,000) plus 5 overtime hours at time-and-a-half rate of $37.50/hour ($187.50). The total gross pay is $1,000 + $187.50 = $1,187.50, which properly compensates for both regular and overtime hours.
Why the Other Options Are Wrong
Option A: $1,125
This answer ($1,062.50) appears to use an incorrect overtime multiplier of 1.25 instead of the required 1.5 for time-and-a-half.
Option D: $1,250
This answer ($1,250) incorrectly calculates all 45 hours at the overtime rate of $37.50, when only hours over 40 should receive the premium rate.
Memory Technique
Remember '40-1.5': Only hours OVER 40 get the 1.5x multiplier. Think 'Regular 40, then Premium Plus' to avoid applying overtime rate to all hours.
Reference Hint
Florida Building Code Business and Finance Study Guide - Labor Laws and Payroll chapter, or Department of Labor wage and hour regulations section
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