How are employees who earn a salary or wage and incentive pay paid for overtime?
There are two ways to calculate overtime for employees who earn a salary or wage, and incentive pay. • If the salary or wage is more than twice the minimum wage, the overtime wage is calculated using only the salary or wage. The incentive pay is not used to calculate the hourly wage. For example if the employee earns $30 per hour plus a commission, the overtime wage rate would be $30 X 1.5 = $45 per hour of overtime. The commission would not be used in the calculation. • If the salary or wage is less than twice the minimum wage, the overtime wage is calculated separately for the wage or salary and for the incentive pay. Then the two are added together.