Does My Per Diem Or Bonus Affect My Overtime Rate?
In addition to your usual wages, do you also receive a per diem, bonus, truck pay or any other type of allowance? Did you know that any type of additional payment like these may be required to be computed into your overtime rate? The overtime rate is calculated at 1 1/2 times the “regular rate”, not the hourly rate and is usually a higher amount than the hourly rate. When calculating an employee’s “regular rate”, all compensation received by the employee in a workweek must be included, including wages, bonuses, commissions and any other forms of compensation.
Per diems may also be required to be included in the regular rate. If the per diem is excessive or if the employee still receives a per diem even though the employee lives at a local address, then the per diem is most likely to be considered as wages and should be included in determining both the regular rate and overtime rate. Also, any nondiscretionary bonuses — bonuses that are promised or expected and tend to be dependent on the quantity, quality or efficiency of production or hours worked — must be included in the regular rate used for determining overtime pay.
At the Law Office of P. Zachary Stewart, we can help you determine whether you are entitled to additional overtime compensation for the long hours you work. Our firm can help you seek the compensation you are owed for your time on the job. For a free, confidential consultation to discuss your circumstances, please call our office at 304-914-3577.
If I Receive Per Diem Benefits, Do I Qualify For Overtime Wages?
Are you an hourly employee receiving a “per diem,” truck pay or other allowance? Do you get compensation for daily travel expenses? If your job requires unusually long hours on a regular basis, you may receive a “per diem” — a payment per day — for lodging, meals and incidental expenses. Incidental expenses may include tips, dry cleaning or phone charges.
Many full-time employees may get a per diem for expenses such as for travel. An employee may receive reimbursement for their mileage, taxi cabs or plane fares. Sometimes an employee’s meals or lodging are also paid for. However, even if you are receiving a per diem allowance, your long hours at work may still qualify you for overtime wages. It is best to seek the help of a knowledgeable lawyer before you confront your employer for unpaid overtime.
At the Law Office of P. Zachary Stewart, our firm can help you determine whether your long hours on the job are subject to overtime pay. Our firm can help you seek the compensation you are owed for your time on the job. For a free consultation to discuss your circumstances, call our office at 304-914-3577.
Providing Effective Solutions To Unpaid Wage Claims
The Fair Labor Standards Act (FLSA) governs wages and overtime standards for nonexempt employees nationwide. FLSA does not limit the number of hours or days an employee may work; however, it sets overtime pay standards employers must abide by. Under FLSA, employers must pay overtime to nonexempt hourly employees who work more than 40 hours per week at a rate equal to 1 1/2 times their regular rate of pay.
In many instances, workers who receive per diem allowances do not get paid the correct amount of overtime. While their pay stubs reflect overtime at 1 1/2 times their hourly rate, their overtime rate is not correct because it does not include the per diem, truck pay or other allowances. The overtime rate is to be based off an employee’s regular rate not their hourly rate. The regular rate is a legal term, which includes all of an employee’s compensation or all money paid to an employee for their work.
Reach Out To Our Experienced Law Firm To Help You
If you are an employee with questions about your per diem and overtime or have concerns about unpaid wages, call us to speak with an experienced attorney. Call the Law Office of P. Zachary Stewart in Weirton at 304-914-3577 or reach out to us via email using our online form. Our firm takes wage and hours claims cases, including those for per diem workers, throughout West Virginia, Pennsylvania and nationwide.