Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 4

If you were given a choice of overtime pay or compensatory time, which would you choose? Why? (See Objective.)
Understand double time, shift differentials, and split-shift premiums. In addition to premiums paid for overtime, other premium payment plans include double time for holidays and, in some industries, for Saturdays and Sundays. A shift differential is often given to compensate employees for working less-desirable hours. For example, an additional amount per hour or per shift might be paid to swing shift (4:00 p.m. to midnight) and graveyard shift (midnight to 8:00 a.m.) employees.
Restaurant employees and nursing home employees often receive a split-shift premium. Hours are staggered so that the employees are on the job during only the busiest times. For example, an employee may work 4 hours, be off 4 hours, and then work another 4 hours. The employee is paid a premium because of this less-desirable schedule.
Some employers offer compensatory time, or comp time , for overtime hours worked. Instead of additional money, an employee is given time off from the regular work schedule as compensation for overtime hours already worked. Quite often, the compensatory time is calculated at
times the overtime hours worked. For example, 12 hours might be given as compensation for 8 hours of previously worked overtime. Occasionally, an employee is given a choice of overtime pay or comp time. Many companies reserve the use of compensatory time for their supervisory or managerial employees.