Multiply the amount of hours worked in both roles by hourly rates.ĭetermine the sum of the total wages from these positions to figure out the total amount compensated.Ģ. You can follow these steps for calculating overtime with two different pay rates:Ī. It gets its name because a weighted average of two different pay rates is used to determine the overtime rate. Yes, blended overtime is often referred to as weighted or weighted average. Is Weighted Overtime the Same as Blended Overtime? ![]() Confused? Understandable – so let’s dig deeper. You may have employees that perform different duties or tasks at different rates. However, this becomes more complicated for employers that have employees that work different jobs at different rates. When is a Blended Rate Required?įor most employers, calculating overtime is straightforward: employees receive one-and-a-half times their regular rate of pay for all hours worked over 40. A “blended rate” is a rate of not less than one-and-a-half times the weighted average of all non-overtime rates used during that workweek. The federal government’s Fair Labor Standards Act requires that when work is performed at two or more rates, overtime must be paid out at a blended rate. However, for some employees, the employer may need to use a blended or weighted average rate to accurately pay the employee. In most instances this is pretty straightforward. ![]() According to the Fair Labor and Standards Act (FLSA), employees working over 40 hours should be paid at 1.5 times their regular wage. In general, overtime is defined by any time an employee works beyond a standard 40-hour work week.
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