When calculating the effective hourly rate for a salaried employee who takes a 60-minute unpaid lunch daily, what happens to the effective rate compared to taking a 30-minute unpaid lunch?

Answer

The effective hourly rate decreases

When the duration of the assumed unpaid lunch increases from 30 minutes to 60 minutes, the total actual hours spent at the workplace rises, causing the effective hourly rate based on time at site to decrease from $28.85/hr to $25.64/hr for a $60,000 salary example.

When calculating the effective hourly rate for a salaried employee who takes a 60-minute unpaid lunch daily, what happens to the effective rate compared to taking a 30-minute unpaid lunch?
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