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In: Accounting

Aimee is a salaried nonexempt employee who earns an annual salary of $54,000 for a 35-hour...

Aimee is a salaried nonexempt employee who earns an annual salary of $54,000 for a 35-hour workweek, paid biweekly. The employer pays overtime for any hours worked in excess of 35 per week. During a pay period, she worked 73.5 hours. She has requested that she take compensatory time in lieu of paid overtime. How much compensatory time should she receive, assuming that her firm approves the compensatory time?

3.5 hours

2.75 hours

5.25 hours

10.25 hours

Solutions

Expert Solution

Aimee is a salaried nonexempt employee who earns an annual salary of $54,000 for a 35-hour workweek, paid biweekly. The employer pays overtime for any hours worked in excess of 35 per week. During a pay period, she worked 73.5 hours. She has requested that she take compensatory time in lieu of paid overtime .

The Payperiod is biweekly that is weeks. Normal working hours in 1 week is 35 hr thus in 2 weeks same shall be 70 hrs. However Aimee worked for 73.5hrs in the payperiod wher normal working hrs are 70 hrs. Thus she worked overtime of 3.5 hrs. Thus she shall be provided compensatory time of 3.5 hrs provided company should provide compensatory time linit of 3.5hrs or more.

Now let us consider different compensatory time period allowed by the company.

1) 3.5 hrs - Aimee shall receive all 3.5 hrs of compensatory time

2) 2.5 hrs - Aimee has overworked for 3.5 hrs however as the company allows only 2.5 hrs as compensatory time thus Aimee shall receive compensatory time of 3.5 hrs.

3) 5.25 hrs - Aimee shall receive 3.5 hrs of compensatory time

4) 10.25 hrs - Aimee shall receive 3.5 hrs of compensatory time


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