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The question someone asked about OT calculation at Transcend got me going because I recently had to figure it out for myself when the OT I received did not come close to what I had calculated it would be.
If you go to page 34 of the MLS Handbook on the Transcend MLS website, you will read the following:
"For overtime purposes, the base hourly rate for MLS is the total compensation for the pay period (before OT) divided by the total number of hours worked during the pay period. HALF of the the hourly rate will be paid for each overtime hour plus 100% of production pay."
So, after trying to grasp that, here's what it boils down to, just as an example:
Say for the 2-week period for work 40 hour the first week, doing 10,000 lines.
The second week, you work 42 hours (approved, of course) and do 15,000 lines.
Your total lines are 25,000, paid at .04 each (editing rate) = $1,000 production pay
You have worked 2 OT hours. According to the above formula, for you earn:
Total compensation for pay period: $1,000 divided by total hours worked during pay period (82 hours) = $12.20. This gets divided in half (see above), which equals $6.10. This $6.10 is your OT rate for this instance (you see, it changes with whatever particular pay period you are discussing because of the way the rule is written). So, you end up in total with:
$1,000 production pay + 2 hours of OT at $6.10 per hour ($12.20 total OT pay) =
$1012 Grand Total.
Worth it???????