# Pleasant Valley Country Club Case Study

Response to Client No matter how PVCC pays an employee – whether it be hourly, salary, or some other system – the employee’s total compensation is used to calculate the regular rate of pay. An employee’s regular rate of pay is computed by dividing the employee’s total compensation in a given workweek by the number of hours worked that week.

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To determine her regular rate of pay, divide $30,000 by 52 weeks, which means she earns $576.92 per week. In a given week, let’s assume she earns $400 from lessons. Thus, her total compensation would be $976.92. Last, you divide her total compensation for that week, $976.92, by the number of hours she worked, including hours she provided lessons. If she worked 60 hours, then her regular rate of pay is $16.28 per hour, which is well above the minimum wage. The formula can be best expressed by the following equations:

Step 1: (Annual salary/52) + (Money earned from lessons in that week) = Weekly Compensation

Step 2: (Weekly Compensation/Number of hours worked that week) = Regular Rate of Pay

Step 3: Determine if Regular Rate of Pay is below, at, or above minimum