An employee who earns $10 an hour and receives a weekly attendance award of $20 works 50 hours this week (Overtime pay is required, whether or not the employer specifically asked or expected the employee to work more than 40 hours). His/her total compensation for the week will be:

His/her total compensation for the week will be $577.50

Explanation:

In order to calculate His/her total compensation for the week we would have to make the following calculations:

First we have to Calculate Hourly Rate Excluding Overtime Hours

The hourly rate be calculated with the use of regular rate of $10 per hour and $20 attendance award for the week as follows:

Total Regular Pay for 40 Hours = Number of Regular Hours*Regular Rate + Attendance Award = 40*10 + 20 = $420

Hourly Rate Excluding Overtime Hours = Total Regular Pay for 40 Hours/Regular Hours = 420/40 = $10.50 per hour

Then we have to Calculate Overtime Rate :

As per the applicable rules, the overtime rate is 1.5 times of the regular hourly rate. The overtime rate will be calculated as follows:

Overtime Rate = (Hourly Rate from Step 1)*1.5 = 10.50*1.5 = $15.75

Finally we are able to Calculate Total Compensation for the Week

Total Compensation for the Week = Regular Pay + Overtime Hours*Overtime Rate = (400 + 20) + 10*15.75 = $577.50

His/her total compensation for the week will be $577.50

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

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