Authorization and Calculation of Compensation Clause Samples
The "Authorization and Calculation of Compensation" clause defines how compensation is approved and determined within an agreement. It typically outlines the process by which payments or fees are authorized, who has the authority to approve them, and the method or formula used to calculate the amounts owed. For example, it may specify that compensation is based on hours worked, milestones achieved, or a fixed fee, and detail the documentation required for approval. This clause ensures transparency and consistency in payment processes, reducing disputes and clarifying expectations for all parties involved.
Authorization and Calculation of Compensation. Eligible employees under this section are authorized to be compensated pursuant to the following calculation:
1. The calculation of the payment authorized by this subsection shall be based upon the number of hours in the employee's established regularly scheduled standard work day that the eligible employee was scheduled to work during the period of time the employee was ordered not to report to their normal assigned work location pursuant to subsection (c), regardless of whether the employee performed work.
2. The calculation of payment will not include any scheduled or anticipated overtime.
3. Compensation paid pursuant to this agreement shall not count as hours worked for purposes of calculating overtime, except for those hours which the eligible employee performed work.