What is the gross pay of a non-exempt employee who works 45 hours during a holiday week, receiving additional holiday pay, earning $12.50 per hour?

To determine the gross pay of a non-exempt employee who has worked 45 hours during a holiday week and is earning $12.50 per hour, first, it's essential to recognize how holiday pay typically works, especially for non-exempt employees.

In this scenario, assume that the employee is entitled to receive time-and-a-half pay for hours worked over 40 in a week. Consequently, the first 40 hours will be paid at the regular rate, and the additional 5 hours will be compensated at the overtime rate.

1. Regular Pay Calculation:

• For the first 40 hours, the employee earns $12.50 per hour.

• Regular pay = 40 hours × $12.50/hour = $500.

2. Overtime Pay Calculation:

• For the 5 hours of overtime, the employee will earn time-and-a-half.

• Overtime rate = $12.50/hour × 1.5 = $18.75/hour.

• Overtime pay = 5 hours × $18.75/hour = $93.75.

3. Total Gross Pay Calculation:

• Total gross pay = Regular pay + Overtime pay.

• Total gross pay