How to calculate a home caregiver’s wage pay for overtime?

Learn how to calculate a caregiver’s overtime pay when paid an hourly rate; also learn how to calculate a caregiver’s overtime pay when paid a flat rate for working 24 hours.

By Brad Nakase, Attorney

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Table of Contents
1. How to calculate a caregiver’s overtime pay when the caregiver is paid a flat wage for 24 hours?
2. How to calculate a caregiver’s overtime wage when the caregiver is paid by the hour?

How to calculate a caregiver’s overtime pay when the caregiver is paid a flat wage for 24 hours?

Understanding the calculation of a caregiver’s hourly and overtime compensation involves a detailed process. Taking an example where the caregiver is paid $10 per hour; the employer and caregiver agree on a daily rate of $240 for a 24-hour shift at $10 per hour for a duration of six days, the calculation for overtime does not simply result in $15.

Rather, one must multiply $240 by six, totaling a weekly wage of $1,440 for the caregiver. Following this, dividing $1,440 by 40 hours yields a regular hourly wage of $36. Therefore, the overtime wage is calculated by multiplying $36 by 1.5, resulting in an overtime pay rate of $54 per hour, as opposed to the initially assumed $15.

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How to calculate a caregivers overtime wage when paid a flat wage for 24 hours?

The process of determining the hourly and overtime pay for a caregiver is intricate and requires careful calculation. For instance, if a caregiver is compensated at $16 per hour, and an agreement is made between the employer and the caregiver for a daily rate of $384 for a 24-hour shift at $16 per hour for six days, the computation for overtime doesn’t merely default to a direct increase from the hourly rate.

To accurately calculate, one should multiply the daily rate of $384 by six, which amounts to a weekly salary of $2,304 for the caregiver. Subsequently, dividing $2,304 by 40 hours results in a standard hourly wage of $57.60. Thus, the overtime compensation is determined by taking $57.60 and multiplying it by 1.5, which equates to an overtime rate of $86.40 per hour, contrasting with the initial assumption of a simpler increase.

How to calculate a caregiver’s overtime wage when the caregiver is paid by the hour?

In a different scenario where a caregiver is compensated on a strict hourly basis for 24-hour care, the base pay starts at $10 per hour, setting the minimum wage threshold. The caregiver should receive payment for nine hours at the regular rate of $10 per hour, totaling $90.

Then, for 15 hours of overtime, the compensation should be one and a half times the regular rate, amounting to $225 daily. Consequently, on an hourly compensation model, the minimum daily wage a caregiver is entitled to for 24-hour service is $315.

This applies to the first five 24-hour shifts each week since working beyond this exceeds the weekly limit of 45 regular work hours. For any additional days worked within the same week, the minimum daily wage increases to $360.

How to calculate caregiver’s overtime wage based on California minimum wage of $16 per hour?

Where a caregiver receives hourly wages for round-the-clock assistance, their starting hourly wage is set at $16. This establishes the minimum hourly earnings. For nine hours of work at this standard rate, the caregiver’s earnings would be $144.

For the remaining 15 hours, classified as overtime, the pay is one and a half times the standard rate, leading to a daily total of $360 for these hours. Therefore, under this hourly pay structure, the least amount a caregiver can earn for a day’s work of 24 hours is $504.

This payment structure is relevant for the initial five 24-hour shifts per week, given that exceeding these shifts surpasses the 45-hour weekly threshold for regular work hours. Should there be any work done beyond these hours within the same week, the daily minimum compensation rises to $576.

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