Commissions or production bonuses included in regular rate
Please enter valid positive numbers for rates and hours.
Total Gross Pay
$953.13
Total Hours Worked
45.00
Weighted Average Rate
$19.67 / hr
Overtime Premium Pay
$49.17
Formula Used: (Total Straight-Time Pay / Total Hours) × 0.5 × Overtime Hours + Total Straight-Time Pay
Pay Breakdown
Component
Value
Calculation Notes
What is a Weighted Average Overtime Calculator?
A weighted average overtime calculator is a specialized financial tool designed to determine the correct overtime pay rate for employees who work at multiple different pay rates within a single workweek. This calculation is crucial for compliance with the Fair Labor Standards Act (FLSA) in the United States.
Unlike standard overtime calculations where you simply multiply a single hourly rate by 1.5, employees with varying roles, shift differentials, or non-discretionary bonuses require a "blended" or "weighted average" regular rate. This ensures that the overtime premium reflects the true average value of the employee's time.
Who needs this tool? Payroll administrators, HR professionals, and employees who work multiple jobs for the same employer (e.g., a server who also works as a bartender) or receive production bonuses.
Weighted Average Overtime Formula
The math behind the weighted average overtime calculator follows a specific sequence required by federal labor laws. The goal is to find the "Regular Rate of Pay" before applying the overtime multiplier.
Step 1: Calculate Total Straight-Time Earnings
Sum the earnings from all hours worked at their respective base rates, plus any eligible bonuses.
Step 2: Calculate Weighted Average Regular Rate
Divide Total Straight-Time Earnings by Total Hours Worked.
Step 3: Calculate Overtime Premium
Multiply the Weighted Average Regular Rate by 0.5 (the "half-time" premium) and then by the number of overtime hours.
Step 4: Total Gross Pay
Add Total Straight-Time Earnings to the Overtime Premium.
Variable
Meaning
Typical Unit
Straight-Time Earnings
Total pay earned for all hours at base rates
USD ($)
Total Hours
Sum of all hours worked across all roles
Hours
Regular Rate
The calculated blended hourly rate
$/Hour
Overtime Premium
Extra pay owed specifically for OT hours (0.5x)
USD ($)
Practical Examples
Example 1: The Dual-Role Employee
John works as a Forklift Driver ($20/hr) for 30 hours and as a Warehouse Clerk ($15/hr) for 20 hours in one week.
Total Hours: 50 hours (10 hours OT)
Forklift Pay: 30 hrs × $20 = $600
Clerk Pay: 20 hrs × $15 = $300
Total Straight-Time: $900
Weighted Rate: $900 / 50 hrs = $18.00/hr
OT Premium: $18.00 × 0.5 × 10 hrs = $90.00
Total Pay: $900 + $90 = $990.00
Example 2: Bonus Inclusion
Sarah works 45 hours at $20/hr and earns a $100 production bonus.
Base Pay: 45 hrs × $20 = $900
Total Straight Earnings: $900 + $100 (Bonus) = $1,000
Weighted Rate: $1,000 / 45 hrs = $22.22/hr
OT Premium: $22.22 × 0.5 × 5 hrs = $55.55
Total Pay: $1,000 + $55.55 = $1,055.55
How to Use This Weighted Average Overtime Calculator
Enter Rates and Hours: Input the hourly rate and hours worked for each distinct job role (Job 1, Job 2, etc.).
Add Bonuses: If the employee earned any non-discretionary bonuses or commissions that week, enter the total dollar amount.
Review the Regular Rate: Check the "Weighted Average Rate" metric to see the effective hourly wage used for OT calculations.
Analyze the Results: The calculator displays the total gross pay, separating the straight-time earnings from the overtime premium.
Key Factors That Affect Overtime Results
Several variables impact the final payout in a weighted average scenario:
Rate Disparity: The larger the gap between the highest and lowest hourly rates, the more the weighted average will deviate from the base rates depending on where hours are spent.
Hours Allocation: Working more hours in the lower-paying role will lower the weighted average rate, thereby reducing the overtime premium value.
Non-Discretionary Bonuses: Bonuses tied to performance, attendance, or production must be included in the regular rate, effectively increasing the cost of overtime hours.
Shift Differentials: Night or weekend premiums are treated similarly to higher base rates and increase the weighted average.
State Laws: While this calculator follows federal FLSA standards, some states (like California) have stricter daily overtime rules that may require different calculations.
Pay Frequency: This tool calculates weekly pay. Bi-weekly or semi-monthly payrolls generally require calculating overtime for each individual workweek separately.
Frequently Asked Questions (FAQ)
Why can't I just pay 1.5x the highest rate?
While you can do this (it favors the employee), it is not required by law. Most businesses prefer the weighted average method to control costs accurately while remaining compliant.
Do discretionary bonuses affect the overtime rate?
No. Discretionary bonuses (like a holiday gift) that are not promised in advance usually do not need to be included in the weighted average regular rate calculation.
How are overtime hours defined?
Under federal law, overtime is typically any time worked over 40 hours in a fixed, recurring 168-hour period (7 consecutive 24-hour periods).
What if the weighted average rate is below minimum wage?
The regular rate of pay can never be less than the applicable federal or state minimum wage. If the calculation falls below, you must use the minimum wage as the baseline.
Does this calculator handle daily overtime?
This calculator focuses on weekly overtime (FLSA standard). States like California, Nevada, or Alaska with daily overtime rules require more complex daily tracking.
Can I use this for salaried employees?
Yes, specifically for non-exempt salaried employees who receive overtime. You would convert their salary to an hourly equivalent for the week to find the regular rate.
What is a "Blended Rate"?
"Blended rate" is simply another term for the weighted average regular rate calculated by this tool.
Why is the overtime coefficient 0.5 and not 1.5?
Because the straight-time earnings (the "1.0") have already been calculated for all hours (including OT hours) in Step 1. We only need to add the "half-time" premium (the "0.5") for the hours over 40.
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