Most of our employees do some overtime. Can we include overtime payments in calculating whether we are paying the minimum wage?

 

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8. Most of our employees do some overtime. Can we include overtime payments in calculating whether we are paying the minimum wage?

You have to strip out any overtime premium from the sum that you include in your calculations. To find the premium, you take the lowest rate that you pay each employee for the same work during normal hours, and deduct that from the amount that you pay in overtime. So for the purposes of calculating the minimum wage, you are effectively paying people for overtime at the lowest rate that you would pay for normal working.