A nonexempt employee of a contractor covered by the Fair Labor Standards Act works 30 hours during the first week of a 2-week period. The employee works 50 hours during the second week to make up the missed time. The employee's pay rate is $12 per hour. What should be the employee's gross pay for this 2-week period?

Rationale

More than $1,050

To calculate the gross pay for the nonexempt employee, we need to determine the total earnings based on the hours worked and the pay rate, considering overtime for hours worked over 40 in a week. The employee's total pay for the two-week period amounts to $1,050, plus additional pay due to overtime in the second week.

A (Less than $1,000) YOUR ANSWER

This choice is incorrect because the employee worked a total of 80 hours over the two weeks, which at a pay rate of $12 per hour would yield $960 if no overtime were considered. However, the employee worked 50 hours in the second week, making this option impossible.

B (Between $1,000 and $1,050) YOUR ANSWER

This choice underestimates the total gross pay since the employee worked 10 hours of overtime in the second week. The calculation for gross pay would include an overtime rate of $18 per hour for those additional hours, leading to a total gross pay exceeding $1,050.

C (More than $1,050) CORRECT

This choice is correct as it accounts for the total hours worked, including overtime. The employee's pay for the first week is $360 (30 hours), and for the second week, it is $960 (40 hours at $12) plus $180 (10 hours of overtime at $18), totaling $1,500.

D (Cannot be determined from the information given) YOUR ANSWER

This choice is incorrect because all the necessary information—hours worked and pay rate—is provided. The gross pay can be accurately calculated based on the given parameters, thus making this option invalid.

Conclusion

The gross pay for the nonexempt employee over the two-week period, considering both regular and overtime hours, is calculated to be more than $1,050. With 30 hours at $12 per hour in the first week and 50 hours in the second week, including overtime, the total gross pay reaches $1,500. This illustrates the importance of understanding overtime calculations under the Fair Labor Standards Act.

More than $1,050

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