The hourly rate plan is by far the most common method for calculating wages for hourly employees. This involves simply multiplying the wage rate per hour times the number of hours worked during the workweek. It can be complicated by adding shift differentials, overtime, and other forms of bonus pay to the base wage rate. (The overtime calculation is covered in a later section.)

Example. Manuel Eversol works the second shift at a manufacturing facility, where he earns an extra $0.25 per hour as a shift differential, as well as a base wage of $12.50 per hour. He worked a standard 40 hours in the most recent workweek. The calculation of his total wages earned is:

• ($12.50 base wage + $0.25 shift differential) × 40 hours = $510 weekly pay