- Examples of Overtime Pay Computations on DBA/DBRA Contracts With CWHSSA

Examples of overtime pay computations on DBA/DBRA contracts with CWHSSA

.. The following examples reflect the correct computations under DBRA and CWHSSA for an employee who worked 44 hours on a covered contract as an electrician, where the wage determination rate for an electrician is $22.00 (basic hourly rate) plus $5.00 in fringe benefits.

.. If the employer paid $22.00 in cash wages and paid $5.00 for fringe benefits, the electrician would receive:

44 hours x $22.00 =    $ 968.00 for cash wages
44 hours x $ 5.00 =     $ 220.00 in fringe benefits
4 hours x . x $22.00 = $ 44.00 for CWHSSA earnings
                                    $1232.00

.. If the employer paid $20.00 in cash wages and $7.00 cash in lieu of fringe benefits:

44 hours x $20.00 =    $ 880.00 in cash wages
44 hours x $ 7.00 =     $ 308.00 in fringe benefits
4 hours x . x $22.00 = $ 44.00 in CWHSSA earnings
                                    $1232.00

.. If the employer paid $24.00 in cash wages and $3.00 in fringe benefits:

44 hours x $24.00 =    $1056.00 in cash wages
44 hours x $ 3.00 =     $ 132.00 in fringe benefits
4 hours x . x $24.00 = $ 48.00 in CWHSSA earnings
                                    $1236.00

The following examples provide two methods for the computation of overtime premium pay required under CWHSSA and/or FLSA for an employee who worked in different job classifications and at different rates of pay in the same work week.

An employee is hired to perform work on a covered construction contract in two job classifications: painter and electrician. The wage determination rate for an electrician is $12.00 (basic hourly rate) plus $2.50 in fringe benefits. The wage determination rate for a painter is $10.00 (basic hourly rate) plus $3.00 in fringe benefits. The payroll shows that the worker performed painting and electrical duties as follows:

                     S    M    T    W    T    F    S
Painter hours       10   10   10
Electrician hours                     10   8

Method 1: Computation of the overtime premium based on the weekly average "regular rate" for the work week.

Step 1: Determine the straight time wages due - excluding fringe benefits

30 hours at the painter's rate of $10.00
18 hours at the electrician's rate of $12.00
Total straight time wages

= $300.00 = 216.00 = $516.00

Step 2: Calculate the "regular rate"

($516.00 / 48 hours worked) = $10.75 "regular rate"

Step 3: Compute the overtime premium due

½($10.75) x 8 overtime hours worked = $43.00

Note: It is important to note that if a worker's regular rate of pay exceeds the basic hourly rate listed in the applicable Davis-Bacon wage determination, then the employee's regular rate of pay must be used in computing the overtime pay premium for FLSA purposes. See 29 C.F.R. §§ 778.107-778.109.

Method 2: Computation of the overtime premium based on the "rate in effect" when the overtime hours were worked.

In this example the eight overtime hours occurred on a Saturday.

The overtime premium could be computed as follows:

½($12.00) x 8 = $48

Note: In some cases, a question arises over whether a cash payment made to a laborer or mechanic is paid in lieu of a fringe benefit contribution or whether it is simply part of the individual's normal basic hourly rate. In the latter situation, the cash payment is not excludable in computing the overtime pay obligation.



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