Employees not normally paid by an hourly, daily, weekly or monthly basis must have an hourly wage established to ensure they are paid overtime correctly.
Examples of this is where employees are paid by a flat rate for a certain job, piecework, and salespersons paid by commission and a base wage.
Calculate the hourly rate for overtime by dividing the non-overtime wages, excluding vacation and public holiday pay, earned for work in the pay period by the non-overtime hours worked in the pay period.
Non-overtime wages include any wages, commissions, flat rate pay, and other incentive-based pay earned during time before an employee works overtime.
Once the hourly rate is determined, multiply that amount by the overtime hours x 1.5
An employer must keep records of their employee's daily and weekly hours worked and earnings in those hours. This will enable employers to calculate an hourly rate of pay and determine what time is and isn't eligible for overtime.
This hourly wage must be at least be the minimum wage, but not more than five times the minimum wage.
Paid By Distance
If an employee is paid on a basis of distance traveled, the hourly wage is 64 X their rate per kilometre.
All Commission Salespersons
If a salesperson is paid only by commission, their hourly rate is the minimum wage.