An employee works 45 hours in a week at $25 per hour. Florida follows federal overtime laws. What is the employee's gross pay for the week?
Correct Answer
A) $1,187.50
Regular pay: 40 hours × $25 = $1,000. Overtime pay: 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
Under the Fair Labor Standards Act (FLSA), which Florida follows, 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 $25/hour ($1,000) plus 5 overtime hours at $37.50/hour ($187.50). The total gross pay is $1,000 + $187.50 = $1,187.50.
Why the Other Options Are Wrong
Option B: $1,000.00
This answer only accounts for the regular 40 hours at $25/hour and completely ignores the 5 hours of overtime pay that must be included.
Option C: $1,125.00
This answer incorrectly calculates all 45 hours at the regular rate of $25/hour without applying the required overtime premium for the 5 hours over 40.
Option D: $1,250.00
This answer incorrectly calculates all 45 hours at double time ($50/hour) instead of applying the correct overtime rate of time-and-a-half for only the hours over 40.
Memory Technique
Remember 'Forty-Fifty' rule: after 40 hours, pay goes up by 50% (1.5x regular rate) for each additional hour worked in that week.
Reference Hint
Florida Building Code Chapter 1, Section 105 - Labor Laws and Wage Requirements, or Department of Labor FLSA guidelines
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