The DWD’s method of calculating overtime pay for salaried employees is correct.
“The department’s calculation methodology is consistent with the statutory and code requirements that an employee be paid time and one-half the regular rate for hours worked in excess of forty hours per week. See Wis. Stat. § 103.025(1)(c); Wis. Admin. Code § DWD 274.03. The department’s methodology recognizes that, when an employee has agreed to be paid on a salaried basis for fluctuating hours, the base salary includes the ‘regular rate of pay’ for any overtime hours worked. See DWD publication ERD-13109-P. Thus, in order to calculate the additional amount due for overtime hours, the employer multiplies the number of overtime hours by one-half the regular rate of pay. See id.”
“The department’s methodology is also consistent with the method our supreme court used to calculate overtime wages owed to a misclassified employee whose overtime pay was withheld. In Katchel v. Northern Engraving & Manufacturing Co., 249 Wis. 578, 588-89, 25 N.W.2d 431 (1946), the court confirmed that an employee who receives a weekly salary has already been paid his or her base salary for all hours worked, including overtime hours. Thus, if overtime is mistakenly withheld from that employee, the employee is only owed additional half-time compensation for any overtime hours. Id.”
Recommended for publication in the official reports.
2010AP333 Kuhnert v. Advanced Laser Machining, Inc.
Dist. III, Chippewa County, Cameron, J., Peterson, J.
Attorneys: For Appellant: Dittmar, Carol S., Chippewa Falls; For Respondent: Cieslewicz, Michael J., Milwaukee; Blocher, Jesse, Milwaukee