Multiple Shifts

No industry standard exists regarding the handling of fixed Ownership costs in computation of overtime rates. It is the responsibility of the contracting parties to agree on an appropriate method.  Two commonly used methods are outlined below as examples of how overtime rates may be established.

Method 1: At the rate of 1/8th of the daily rate for each hour in excess of eight hours, 1/40th of the weekly rate for each hour in excess of forty hours, and 1/176th of the monthly rate for each hour in excess of 176 hours within a thirty-day period.

Method 2: At 50% of the monthly, weekly, daily, or hourly Ownership rate (including Overhaul parts and labor) for each overtime hour worked.  For example:

Single shift (8 hours)=$100 per day

Double Shift (16 hours)=$150 per day ($100 for the first shift and $50 for the second)

Triple shift (24 hours)=$200 per day (100 for the first shift and $50 each for the second and third)

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