Davis Bacon Act

A contractor pays an employee $15 per hour with $10 per hour in fringe benefits. As per the Davis Bacon Act, what would this employee’s overtime rate be?

(a)     $22.50
(b)     $25.00
(c)     $32.50
(d)     $37.50

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Overtime

Overtime hours are defined as all hours worked on the site of the work in excess of 40 hours in any work week. Overtime hours must be paid at no less than on and on-half times the regular rate of basic pay plus the straight time rate of any required fringe benefits.

Therefore:

$15 (regular rate per hour) x 1 ½  = $22.50
$22.50 + $10 fringe benefits = $32.50