Weighted Average Regular Pay Rate for Overtime
If an employee earns two or more different pay rates for different tasks during a single 7 day workweek, a weighted average of the pay rates is calculated to establish a "regular pay rate" for use in all pay calculations for that workweek.
For example, suppose within one workweek, an employee works a total of 45 hours where the first 24 hours were at a rate of $10.00 and the next 21 hours were at a rate of $15.00. The weighted average "Regular Rate" for use in overtime calculations would be calculated using the following formula.
(24 hrs * $10.00/hr) + (21 hrs * $15.00/hr) ------------------------------------------- = $12.33 regular rate per hour. 45 total hours worked.
Therefore the employee would have gross pay based on the following:
24 hours * $12.33 per hour regular rate = $295.92 16 hours * $12.33 per hour regular rate = $197.28 5 hours * $12.33 per hour regular rate * 1.5 OT = $92.48 ======= $585.68 Gross Pay
Some of the actual US legal code appears below...
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