Common use of Contractual Overtime Clause in Contracts

Contractual Overtime. Effective September 28, 2014, compensation for Contractual Overtime shall be paid at the rate of one and one-half (1.5) times the employee’s contract rate of pay. Contract rate of pay shall include base hourly rate of pay, not taking into account the hourly pay increase set forth in Section 502-C ([Historical] Salary Offsets for Increased Employee Paid Retirement Contributions). As an example, assume the employee’s hourly contract rate of pay prior to that increase was $25.00. Overtime covered by this provision would then still be paid at the rate of one and one-half times $25.00, or $37.50 per hour. Upon receiving the additional pay raise set forth in Section 502-A (e.g. 1%), that $25.00 per hour contract rate of pay would be increased by 1% to equal $25.25 per hour which rate would still not include the increase in base hourly rate of pay set forth above in Section 502-C ([Historical] Salary Offsets for Increased Employee Paid Retirement Contributions).