### Calculating Overtime Pay for Mileage Paid Drivers

Posted:

**Fri Aug 15, 2014 6:11 pm**Truck drivers who are paid on a day rate, trip rate, commission, mileage or other incentive basis are also entitled to overtime.

Calculating overtime when paid other than hourly

In order to calculate overtime it is necessary to convert day or trip rates to an hourly rate as follows:

Divide total regular earnings for the week by the total number of hours worked to establish the hourly rate. The resulting hourly rate may change each week.

Pay the number of regular hours worked by the hourly rate.

Multiply the hourly rate by 1.5 to calculate the overtime rate.

Pay the number of overtime hours worked by the overtime rate.

Show the regular and overtime rates and the number of hours worked at each rate on the employee’s pay stub.

Example:

A short-haul truck driver is paid by the delivery. One week he works six 10-hour days and is paid $1,200. Since short-haul truck drivers are entitled to overtime after 45 hours per week, the driver has 15 hours for which he is entitled to be paid at overtime rates. The driver’s piece rate must be converted to an hourly rate which can then be used to calculate overtime as follows:

Divide the $1,200 earned by the 60 hours worked to get the driver’s “regular rate” of $20 per hour for that week;

The first 45 hours are calculated at the regular rate of $20 for a total of $900;

The additional 15 hours are calculated at one and a half times the regular rate, or $30/hour, for a total of $450;

Total earnings that week are $900 + $450 = $1,350.

Calculating overtime when paid other than hourly

In order to calculate overtime it is necessary to convert day or trip rates to an hourly rate as follows:

Divide total regular earnings for the week by the total number of hours worked to establish the hourly rate. The resulting hourly rate may change each week.

Pay the number of regular hours worked by the hourly rate.

Multiply the hourly rate by 1.5 to calculate the overtime rate.

Pay the number of overtime hours worked by the overtime rate.

Show the regular and overtime rates and the number of hours worked at each rate on the employee’s pay stub.

Example:

A short-haul truck driver is paid by the delivery. One week he works six 10-hour days and is paid $1,200. Since short-haul truck drivers are entitled to overtime after 45 hours per week, the driver has 15 hours for which he is entitled to be paid at overtime rates. The driver’s piece rate must be converted to an hourly rate which can then be used to calculate overtime as follows:

Divide the $1,200 earned by the 60 hours worked to get the driver’s “regular rate” of $20 per hour for that week;

The first 45 hours are calculated at the regular rate of $20 for a total of $900;

The additional 15 hours are calculated at one and a half times the regular rate, or $30/hour, for a total of $450;

Total earnings that week are $900 + $450 = $1,350.