CSLB Contractor's Law & Business Practice Exam

If an employee's regular rate is $10/hour and they work a total of 90 hours in a two-week payroll period, what are the gross wages due?

1. $700

2. $800

3. $1,000

4. $1,200

The correct answer is: $1,000

To determine the gross wages due for an employee who earns $10 per hour and works a total of 90 hours in a two-week payroll period, it is essential to understand how to calculate regular and overtime wages. In California, the standard workweek is typically considered to be 40 hours. Therefore, if an employee works beyond this threshold during a weekly payroll period, those additional hours are classified as overtime and typically paid at a higher rate. Here's how the calculation works: 1. The employee worked 90 hours over two weeks, which equates to an average of 45 hours per week. 2. The first 40 hours are paid at the regular rate of $10/hour—this equals $400 for the first week. 3. The remaining 5 hours are considered overtime hours. In California, overtime pay is generally 1.5 times the regular rate. So the overtime rate would be $10 * 1.5 = $15/hour. Therefore, the 5 overtime hours would result in $75 (5 hours * $15/hour). 4. The same calculation applies for the second week, resulting in another $400 for the first 40 hours and $75 for the 5 overtime hours. So, summing this