Dual-Rate Method is a method of allocating costs in which two cost functions are used. Typically, the two functions are a fixed-cost function and a variable-cost function.
Dual-Rate Method FAQs
The Dual-Rate Method is a method of calculating overtime pay in which employees are paid one rate for regular hours and another, higher rate for any hours worked over 40 per week.
The Dual-Rate Method is an overtime pay calculation method used by employers to meet the requirements of wage and hour laws in certain situations, such as when an employee earns a regular hourly rate plus commission or bonus pay.
The Dual-Rate Method can help employers save money on overtime pay while also providing employees with additional income for the extra hours they work.
The Dual-Rate Method calculates overtime pay by multiplying the employee's regular rate of pay by 1.5 and then adding any commission or bonus pay earned during the week to determine the total overtime wages due.
Yes, employers must meet certain requirements to use the Dual-Rate Method, such as ensuring that employees are paid at least the minimum wage rate and that their total wages for all hours worked exceed 1.5 times the minimum wage rate. Employers must also document all calculations in accordance with applicable laws.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
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