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Thus, unless it is listed above, all earnings for the workweek are used in computing an employee’s regular rate of pay
(RROP). Any type of production bonus, shift premiums, travel pay, or any other type of payment is also included.
Example of RROP using the federally mandated WAOT formula
Assume 60 hours total for the workweek includes regular hours, travel hours, and overtime rates. Employee’s assigned
hourly rate is $25hr and $10hr travel.

40 hrs regular = $1000 (40x25) straight time
10 hrs overtime = $ 250 (10x25) straight time
5 hrs reg travel @$10hr = $ 50 (5x10) straight time
5 hrs overtime travel = $ 50 (5x10) straight time
Total Gross Straight Time: = $1350

Step 1 Calculate the RROP
RROP = $22.50 (1350/60)
Overtime Multiplier = $11.25 (0.50 x 22.50)
Step 2 Calculate overtime premium based off of RROP
10hrs overtime = $112.50 ($11.25 x 10 overtime hours = $36.25hr rate)
5hr overtime travel = $56.25 ($11.25 x 5 overtime travel hours = $21.25hr rate)
Step 3 Gross Wages Paid
$1350 all straight time pay
112.50 10 hrs overtime
56.25 5 hrs travel overtime
$1,518.75 Total Gross Earnings for the workweek

For more information about the RROP and WAOT visit: https://www.dol.gov/whd/regs/compliance/whdfs23.Pdf

Per Diem Policy
Per Diem is paid to nonexempt employees through their weekly paychecks as a meal/lodging reimbursement in order to
help cover the cost of the employee's meals and lodging when their job assignment requires them to spend the night away
from home. This is treated as a tax-free lodging/meals/incidentals reimbursement and is not a part of your regular
earnings/wages.

Per Diem will be paid for each day to all non-exempt (hourly) employees that spend the night away from home. Per Diem
in any amount is not paid when there is not a requirement to spend the night away from home. No Per Diem is paid for
employees attending new hire training as all lodging and meals are provided for the employee by the Company.

Per Diem rates vary year to year as well as job location to location. Ask your supervisor for the per diem rate during a
specific assignment location. There is no official established split between the meal or lodging portion of the per diem
rate. Managers have the authority to adjust the whole rate or the split of (meals/lodging) the per diem as it suits the
contract and circumstance. The Employee is responsible for noting their per diem and the established amount on their
weekly time card in order to be paid their per diem and/or Supervisors of rig crews will add per diem to each crew member
as applicable per job assignment.

Examples on how per diem is paid:
• Employee works Monday through Friday, travels to the site on Sunday and travels home on Saturday. Established
Per Diem rate is paid Sunday through Friday
• Employee works Monday through Friday, travels to the site on Sunday and home on Friday after work. Per Diem
is paid Sunday through Thursday
• Employee works Monday through the following Wednesday (10 days), travels to the site on Sunday and home on
Thursday. Per Diem is paid Sunday through Wednesday
• Employee works Monday through Friday, travels to the site on Monday and home on Friday after work. Per Diem
is paid Monday through Thursday

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