An employee works 45 hours in a week at $25 per hour. Calculate the gross pay including overtime at time-and-a-half.
Correct Answer
B) $1,187.50
Regular pay: 40 hours × $25 = $1,000. Overtime: 5 hours × $37.50 (time-and-a-half) = $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 rules. Under federal law, employees must receive time-and-a-half pay for hours worked over 40 in a workweek. The calculation properly separates regular hours (40) from overtime hours (5), applies the correct overtime rate of $37.50 ($25 × 1.5), and adds both components together. This results in the accurate gross pay of $1,187.50.
Why the Other Options Are Wrong
Option A: $1,125.00
This answer of $1,125.00 appears to calculate overtime at regular rate rather than time-and-a-half, which violates FLSA requirements and would be illegal for most employees.
Option C: $1,000.00
This answer of $1,000.00 only accounts for regular pay and completely ignores the 5 hours of overtime compensation required by law.
Option D: $1,250.00
This answer of $1,250.00 calculates as if all 45 hours were paid at the overtime rate of $37.50, which is incorrect since only hours over 40 qualify for overtime pay.
Memory Technique
Use '40-1.5' rule: After 40 hours, multiply remaining hours by 1.5 times regular rate. Think 'Forty-First-and-a-Half' to remember both the threshold and multiplier.
Reference Hint
Florida Building Code, Chapter 1, Section 105 - Labor Laws and Wage Requirements, or Department of Labor FLSA guidelines
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