In order to calculate regular rate of pay in California one must first know what regular rate of pay is. According to the California Department of Industrial Relations regular rate of pay is “the basic hourly rate plus commissions piecework earnings and certain premiums paid for overtime” (qtd. in Echols). Thus the regular rate of pay is not simply an employee’s hourly wage but may be composed of several different types of earnings.
To calculate regular rate of pay first total all earnings for the workweek that are not excludable as described in the following section. This total is then divided by the total number of hours actually worked in the workweek to obtain the regular hourly rate for the week. Finally any applicable premiums are added to the regular hourly rate to arrive at the regular rate of pay.
The following earnings are not included when calculating regular rate of pay:
1. Overtime premiums
2. Outside salesperson commissions
3. Vacation pay
4. Holiday pay
5. Sick pay
6. Employer contributions to pension or profit-sharing plans
7. Deferred compensation
8. Section 1191.5 shift differentials
9. Meal and lodging allowances
10. Discretionary bonuses
(qtd. in Echols)
Sources:
Echols S. (n.d.). How to Calculate Regular Rate of Pay for Hourly Employees in California. All business. Retrieved from http://www.allbusiness.com/human-resources/compensation-benefits/13754287-1.html
How do you calculate regular rate of pay in California?
The regular rate of pay must include all forms of compensation paid to the employee including bonuses commissions piece rate earnings and other premium pay.
Does regular rate of pay have to be the same every week?
No in California the regular rate of pay can fluctuate from week to week.
How do you calculate regular rate of pay if an employee is paid a salary?
If an employee is paid a salary the regular rate of pay is determined by dividing the salary by the number of hours the salary is intended to cover.
How do you calculate regular rate of pay if an employee is paid an hourly rate?
The regular rate of pay for an employee paid an hourly rate is the hourly rate itself.
How do you calculate regular rate of pay if an employee is paid a piece rate?
The regular rate of pay for an employee paid a piece rate is determined by dividing the total earnings from the piece rate by the total number of hours worked.
How do you calculate regular rate of pay if an employee is paid a commission?
The regular rate of pay for an employee paid a commission is determined by dividing the total commission earnings by the total number of hours worked.
How do you calculate regular rate of pay if an employee is paid a bonus?
The regular rate of pay for an employee paid a bonus is determined by dividing the bonus by the number of hours worked during the period to which the bonus applies.
How do you calculate regular rate of pay if an employee is paid a combination of salary hourly rate and commission?
The regular rate of pay for an employee paid a combination of salary hourly rate and commission is determined by adding together the salary the hourly rate and the commission and then dividing that total by the number of hours worked.
How do you calculate regular rate of pay if an employee is paid a combination of salary hourly rate and piece rate?
The regular rate of pay for an employee paid a combination of salary hourly rate and piece rate is determined by adding together the salary the hourly rate and the piece rate and then dividing that total by the number of hours worked.
How do you calculate regular rate of pay if an employee is paid a combination of salary commission and piece rate?
The regular rate of pay for an employee paid a combination of salary commission and piece rate is determined by adding together the salary the commission and the piece rate and then dividing that total by the number of hours worked.
How do you calculate regular rate of pay if an employee is paid a combination of salary hourly rate commission and piece rate?
The regular rate of pay for an employee paid a combination of salary hourly rate commission and piece rate is determined by adding together the salary the hourly rate the commission and the piece rate and then dividing that total by the number of hours worked.
How do you calculate regular rate of pay if an employee is paid a combination of salary hourly rate commission bonus and piece rate?
The regular rate of pay for an employee paid a combination of salary hourly rate commission bonus and piece rate is determined by adding together the salary the hourly rate the commission the bonus and the piece rate and then dividing that total by the number of hours worked.
How do you calculate regular rate of pay if an employee is paid a combination of salary hourly rate and shift differential?
The regular rate of pay for an employee paid a combination of salary hourly rate and shift differential is determined by adding together the salary the hourly rate and the shift differential and then dividing that total by the number of hours worked.
How do you calculate regular rate of pay if an employee is paid a combination of salary hourly rate commission and shift differential?
The regular rate of pay for an employee paid a combination of salary hourly rate commission and shift differential is determined by adding together the salary the hourly rate the commission and the shift differential and then dividing that total by the number of hours worked.
How do you calculate regular rate of pay if an employee is paid a combination of salary hourly rate commission bonus and shift differential?
The regular rate of pay for an employee paid a combination of salary hourly rate commission bonus and shift differential is determined by adding together the salary the hourly rate the commission the bonus and the shift differential and then dividing that total by the number of hours worked.
