Message-ID: <30784219.1075860497376.JavaMail.evans@thyme>
Date: Fri, 9 Jun 2000 03:12:00 -0700 (PDT)
From: michelle.cash@enron.com
To: knotestine@littler.com
Subject: Shift Differentials and Overtime Payment
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Kerry,  What are your thoughts on this issue?

Michelle



Michelle,

We have had a couple of interpretations as to how to calculate the overtime 
for employees who receive a shift differential and wanted to ask for 
assistance from you.  The problem we are having deals with employees who 
rotate shift.  Please review the following scenario.

For a simple example with an ee at $10/hour and shift of $1/hour for the 
Night (N) shift.


  M T W Th F S

REG  8 8 8 8 8 
OT       8 
SHIFT  N N D D D D 


Interpretation 1

The shift differential would be added to his pay to determine the regular 
rate of pay and his pay would be calculated as follows:

REG  $400
SHIFT       16
OT    124.80  ((400+16)/40) x 1.5)


Interpretation 2

Since his overtime was during a day shift, his pay would be calculated as 
follows:

REG  $400
SHIFT       16
OT    120.00 (400/40 x 1.5)

Can you please let us know which interpretation is correct or if we have 
totally missed the boat on both of them?

Thanks for your help,
Diane







