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What the Hour Is Worth

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What the hour is worth

Base, differentials, bonuses, commission and the components that belong in the rate.

What Belongs in the Rate

Why the contractual hourly rate is not the rate a premium is computed on, which components belong in it, and how to spread a bonus.

Bonuses That Are Not Discretionary

Why most bonuses called discretionary are not, the three things that make one count towards the rate, and how a settled practice outlives the wording.

Commission, and the Week It Belongs To

Why commission belongs in the rate, the problem of assigning it to the weeks it was earned over, and what to do when the period is unknown.

Shift Differentials and Allowances

The difference between an allowance that pays for work and one that repays a cost, and why flat rates are the difficult case.

Two Rates in One Week

Computing a premium for somebody who worked at more than one rate, why systems default to the wrong answer, and who is multi-rate without knowing.

Piece Rates and the Hours That Still Count

Why paying by output does not remove the need to record hours, how a piece rate converts to an hourly figure, and the tasks that produce no pieces at all.

Salaried Does Not Mean Exempt

Why paying a salary does not by itself remove entitlement to a premium, the two tests that usually apply, and how job titles drift.

Day Rates and Converting Them to an Hour

Why a day rate still has an hourly value, how the arithmetic changes when the shift runs long, and the flat allowances that quietly raise the figure.