Blended Overtime Math for Multiple Pay Rates
An exhaustive mathematical and legal guide detailing the FLSA weighted average regular rate of pay formula for dual-rate non-exempt employees.
Employment Law Analysts
1. The Statutory Blended Rate Formula
Under 29 CFR § 778.115, when a non-exempt employee in a single workweek performs two or more different types of work for which different hourly rates have been established, their regular rate for overtime purposes is the weighted average of those rates:
1. Weighted Regular Rate = Total Straight-Time Earnings ÷ Total Hours Worked
2. Overtime Half-Time Rate = Weighted Regular Rate × 0.5
3. Overtime Premium Owed = Overtime Half-Time Rate × Total Overtime Hours
2. Worked Math Example: Dual-Rate Employee
An employee works 30 hours as a Cashier ($20.00/hr) and 20 hours as a Shift Lead ($30.00/hr) in the same workweek (Total: 50 hours worked, 10 hours of FLSA overtime).
Frequently Asked Questions (Blended Overtime)
Can an employer pay overtime based solely on the rate in effect when overtime occurs? ↓
Only if an explicit agreement exists under FLSA § 7(g)(2) prior to performance of the work. Without a formal, pre-established agreement meeting strict Department of Labor criteria, the weighted average regular rate method (29 CFR § 778.115) is mandatory by law.
Do shift differentials have to be included in the weighted regular rate? ↓
Yes. Shift differentials, non-discretionary bonuses, and hazardous duty pay must be included in total straight-time earnings before dividing by total hours worked to calculate the regular rate of pay.