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 Question from Lisa: I am applying for a job that pays $16.00 per hour, plus 5 hours of overtime every 2 weeks. I live in California, where overtime is 1.5 times the regular rate of pay after you work 8 hours a day. What would the gross annual salary be with all the overtime hours added in? Hi Lisa, I assume that's an 8 hour day and 5 days a week so in a normal week you would make$5 \times 8 \times \$16.00 = \$640.00.$Every two weeks you would have 5 hours of overtime at$1.5 \times \$16.00 = \$24.00$per hour so that's$5 \times \$24.00 = \$120.00$in overtime pay. Hence every two weeks you would make$2 \times \$640.00 + \$120.00 = \$1400.00.$

There are 52 weeks in a year so that is 26, two week periods and hence your gross annual salary would be $26 \times \$1400.00 = \$36400.00.$

Penny

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