You asked me to analyze whether Pleasant Valley Country Club (PVCC) must include lesson fees and instruction time in calculating the regular rate of pay for its tennis pros and golf pros. You also asked me to draft a reply to the client that incorporates my analysis. I omitted legal citations, legalese, and background information to help our client better understand why PVCC must include lesson fees in the employees’ regular rate of pay.
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. …show more content…
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
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. …show more content…
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