48 | Massachusetts Wage & Hour Peculiarities, 2025 ed. © 2025 Seyfarth Shaw LLP could be calculated by either of two methods, both of which result in the same total compensation: Method 1: The employee’s regular hourly compensation is calculated by multiplying the total hours worked by the employee’s regular hourly rate ($20.00 x 50 hours = $1000.00). The bonus allocable to the week is added to the employee’s regular hourly compensation ($250.00 + $1000.00 = $1250.00). That total is then divided by the total number of hours worked to obtain an adjusted hourly rate ($1250.00 ÷ 50 hours = $25.00 per hour). The overtime owed to the employee is equal to one-half of that hourly amount multiplied by the number of overtime hours worked by the employee (in this case, 10 hours). Thus, the employee would be owed $75.00 in overtime for each of the four weeks in the bonus period ($25.00 x .5 x 10 = $125.00). The employee’s total compensation for each week would be $1375.00 ($1000.00 regular hourly compensation, plus $250.00 in bonus, plus $125.00 in overtime). Method 2: Alternatively, the employer may calculate the employee’s straighttime pay and overtime as it ordinarily would, that is, by multiplying the regular hourly rate by 40 hours to obtain the employee’s straight-time pay ($20.00 x 40 hours = $800.00), and by multiplying the employee’s overtime hours by 1.5 times the employee’s regular rate to obtain the employee’s regular overtime pay ($20.00 hour x 1.5 x 10 hours = $300.00). Additional overtime allocable to the bonus would then be calculated by dividing the bonus by the total number of hours worked each week ($250.00 ÷ 50 hours = $5.00), then multiplying that amount by .5, and then multiplying that by the number of overtime hours ($5.00 x .5 x 10 hours = $25.00). The employee’s total compensation would be $1375.00 ($800.00 straight-time regular compensation, plus $300.00 regular overtime, plus $250.00 in bonus, plus $25.00 in overtime pay allocable to the bonus). 8. Calculation of the Regular Rate for an Employee Paid by a Method Other Than an Hourly Rate a. Piecework An employee who is paid on the basis of a piece rate for work performed is entitled to overtime under both Massachusetts and federal law. The regular rate for piecework can be computed in either of two ways: Method 1: The regular rate may be determined by dividing the total weekly earnings by the total weekly hours worked.276 Method 2: The regular rate may be the same as the straight-time piece rates in effect during overtime hours, provided that (1) the employee consents; (2) the 276 29 C.F.R. § 778.111.
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