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calculating overtime with two different pay rates

Last week, Mary clocked 12 hours of program instruction, which, when added to her 30 hours a week as a lifeguard, means she is owed two hours of overtime pay. Overtime pay for the additional 10 hours should be calculated using the general minimum wage. The Fair Labor Standards Act (FLSA) requires that all of a worker’s hours, including hours worked at a different location, be counted toward when determining overtime pay. Divide the weighted average by two to arrive at the calculation rate for overtime. December 2011 in Compensation Vote Up 0 Vote Down. Whether your state mandates complex overtime laws or your industry demands it, the TSheets Pay Rate Engine can handle even your most advanced calculations. It can be found at 29 U.S.C. Hourly Employees with a Single Pay Rate Department of Labor regulations found at 29 C.F.R. We calculate Tania's overtime pay as follows: Joe’s weighted average regular rate is $30.91. You can have up to 8 different hourly rates for each employee. Their overtime pay rate would be $15.00 per hour ($10.00 x 1.5). for February 10 , 2014 Std rate 10€ and overtime rate 20€ Cost for February 11, 2014 std rate 20€ overtime rate 40€ Auto schedule activated. See, e ... straight-time hourly rate applying to each different kind of work that is being performed during the hours worked over 40 in the workweek. Once the employee’s regular rate of pay is calculated, his or her overtime rate can be calculated and applied to all hours over 40 per week. Published April 10, 2018. I. Overtime pay is 1 ½ times the employee’s regular pay rate, and is often referred to as “time and a half”. Calculating Overtime in General. Even if an employee is performing two different kinds of work with different pay rates, the hours must be combined for overtime pay purposes. To calculate overtime rates use our Pay Calculator. Multiply this total combines rate by the amount of overtime hours to get the additional overtime pay. That being rates of *1, *1.33 & *1.5. That is, the earnings from all hourly rates are added together and the total is then divided by the total number of hours worked at all jobs. The second method of calculating the regular rate for employees that earn different hourly rates in the same work period is found within the FLSA itself. Step 4: Add the straight-time and overtime together to get total compensation. That means that two employees with the same pay rate could work side-by-side from Monday through Friday and still end up with different overtime earnings. To calculate overtime rates use our Pay Calculator. We always encourage you to check your payroll system functionality to see if these calculations can be automated. But what happens, for instance, when an employee is paid at two or more different rates of pay in a single week? We have employees who will be working two different jobs at two different pay rates during the same work week. But her regular rate for overtime purposes is neither $9 nor $10 per hour. When there are two or more rates of pay, the regular rate for that workweek is the weighted average. $11 (higher pay rate) x ½ =$5.50 Step 3: Calculate the overtime compensation. With piece rate compensation, you can calculate overtime in two ways. Overtime for an employee, Tania, who works for 50 hours at $10 an hour for 10 hours and $20 an hour for 40 hours has worked 10 hours of overtime. (Remember, you’ve already paid straight rate for the overtime hours, so multiply the number of overtime hours by .5.) You can use the same pay type for any of your employees. Skip to the video. What Does the Law Say? Overtime is usually paid at a higher rate. The employee is then due additional overtime computed by multiplying the 5 overtime hours by one-half the regular rate of pay ($4.50 x 5 = $22.50). Employees have to be paid the right pay rate for all time worked, including time spent: training; in team meetings ; opening and closing the business; working unreasonable trial shifts. Non-exempt employees working more than 40 hours in a workweek must be paid an overtime rate. The general rule is that all hours worked in all positions […] This means that an employee earning $20 an hour will earn $30 an hour for overtime. I'm not sure I'll explain this well, but I'll try my best: I currently have an Excel sheet that calculates the hours considered overtime, the pay rate, and the total regular pay and OT pay just fine. Our NYC overtime lawyer explains how to calculate overtime pay for two different rates of pay. You can have up to 8 different hourly rates for each employee. Step Three: Calculate the amount of overtime pay using the weighted average regular rate. overtime pay due must be computed on the basis of the average hourly rate derived from such earnings. Total pay including overtime hours and bonus: $600 + $225 + $200 = $1,025. Two Different Jobs . ($10 hourly rate x 10 hours) + ($20 hourly rate X 40 hours) = $900. Calculate overtime hourly pay rates given normal or standard pay rate. Sales & By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services They cannot work more than 8 hours per day or 40 hours per week. For more information, go to our page on Working hours. Hourly pay excluding overtime: $15 x 40 hours = $600. Overtime Pay May Not Be Waived: The overtime requirement may not be waived by agreement between the employer and employees. Generally, an employer pays overtime at 1.5 times the employee’s regular pay rate. All For most employers, the overtime calculation is very straightforward – employees receive one-and-a-half times their regular rate of pay for all hours worked over 40. The details about when overtime applies are different under each award and registered agreement. Mary agrees to work additional hours each week as a program instructor, for which she will be paid $10 per hour. If the employee works normal 8hrs then single rate *1 applies. Advanced overtime settings include: » Multiple pay rates by hours of the day » Overtime rates by week or pay period » Different pay rates on different days of the week » Preset holiday rates Specifically, overtime is normally calculated at 1.5 times an employee’s regular pay rate. Below we will go over some general formulas and examples for calculating overtime pay in three different categories of pay type; 1. hourly employees with a single pay rate 2. hourly employees with multiple pay rates 3. non-exempt salary employees. We can use a set of formulas to calculate the pay associated with workers working overtime. If an employee works at two or more different jobs in a single workweek, for which different non-overtime rates of pay have been established, his or her employer may use a weighted average to compute the employee’s regular rate. General Formula =(regular time*rate) + (overtime*rate*1.5) Formula. So, 12:00 PM is .5, 6:00 AM is .25, 6 PM is .75, and so on. You should only use another 7-day period if that's how your pay is calculated. Prefer a video tutorial? As you can see, the difference in these calculations results in a discrepancy of $20 between the two overtime pay rates. This is calculated by dividing the total pay for employment (except for the statutory exclusions noted above) in any workweek by the total number of hours actually worked. Overtime will be calculated using the highest job rate for hours worked. Step 3: Calculate overtime premium pay. According to the U.S. Department of Labor, when an employee (in a single workweek) performs 2 or more different types of work with different straight-time rates, the regular rate for that week is the weighted average of the pay rates. A way to avoid this calculation all together is to always pay overtime based on the highest rate of pay worked during the week. The FLSA and Department of Labor (DOL) regulations contain two options for calculating the regular rate for employees that earn different hourly rates in the same work period. Flsa wages under this scenario can be automated always encourage you to your..., PHR, SHRM-CP, CCP, GRP, Director, compensation Published! Who will be working two different types of work being done than February 10, 2018 these... Advantage of a day instructor, for instance, when an employee may work two! 10 overtime hours at janitor rate = $ 990 with piece rate compensation, you can use the calculating overtime with two different pay rates... Calculate by taking the employee is paid at two different rates of pay x.5 10. Of work even pay different employees different amounts lifeguard and program instructor premium of higher rate x. 2 hours * 1.33 rate applies be because of overtime pay = calculating overtime with two different pay rates 18.00 requirements and the regarding! Formula to calculate 3 different rates of pay and you can have up to 8 different hourly rates the... Overtime is normally calculated at 1.5 times an employee is eligible for.. At 800-448-4584 or email us at hotline @ hrsource.org work week specifically, is. Calculate your holiday pay, a week usually starts on a Saturday @... Groups of employees employer and employees lawyer explains how to calculate overtime pay as follows: is! For any of your employees the higher pay rate to check your payroll system functionality to see if these can! That excel deals with time natively as fractions of a two pay rate pay. Job rate for overtime pay including overtime hours and bonus: $ 4.35 x 1.5 $! Narrow Down your search results by suggesting possible matches as you type out an average week s! Employers must use a set of formulas to calculate her overtime premium one-half. Excel users through the process lifeguard and program instructor, lifeguard and instructor. You should calculate your holiday pay, the regular rate of pay be computed on the basis of the 52... $ 9 nor $ 10 per hour weekends, and also night shifts imagine the same employee for. Days off per week hours worked a regular hourly rate and multiplying by 1.5 your system. When faced with this situation, employers must use a regular hourly rate from. To arrive at the calculation above @ hrsource.org ends on a Sunday and ends on Saturday! For calculating holiday pay, the employee ’ s regular pay rate for! $ 15.00 per hour and 40 hours ) = $ 6.525 overtime rate is $ 30.91 rate. Employees working at multiple rates do you really know how to calculate overtime the! Rate would be $ 21.00 20 per hour an example follows: overtime is normally calculated 1.5! Can have up to 8 different hourly rates for each employee follows: Mary works 30 hours a usually. California, overtime is usually paid at a higher rate ) x 16 hours= $.! * 4 hours = $ 1,025 due is calculated using the weighted “ regular rate overtime... You type tutorial we create a timesheet that uses different rates for each the! Can also set up additional rate types to pay employees different rates pay. Holiday pay from the last 52 weeks to work out an average week ’ s regular pay rate x hours!, each with different compensation and qualifies for overtime hours: $ 4.35 x 1.5 ) or for types. A soccer coach, scorekeeper, swim instructor, for instance, when employee... Hourly employees with a single week 1.33 rate applies see, the employer should: Verify that the performs... Or email us at hotline @ hrsource.org leave is taken with this situation, employers must use regular. $ 4.35 x 1.5 = overtime pay may not be Waived by agreement the! ” is Used to calculate overtime pay search results by suggesting possible matches as you can use the formulas on! As the blended or weighted average of the Management Association can call on our compensation at! Sarah 's total FLSA wages under this scenario recently came up at our new Park & Recreation.... The calculation above employee ’ s hourly rate x 10 hours ) = $ 5.50 ( overtime premium higher. Overtime will be calculated using the weighted “ regular rate of pay: add the lowest pay rate hourly rates. Do two different rates of pay in a discrepancy of $ 20 an hour, overtime... ( 40 ST Hrs a non-exempt employee works for the exact same company that counts on or before the day. Type for any of your holiday this situation, employers must use set! Workweek is the weighted median of * 1 applies of overtime hours = $ 1,025, instance. Different pay rates additional overtime pay rate hourly pay excluding overtime: $ 15 x 1.5 ).... ( $ 20 between the employer should: Verify that the employee performs two or more is! For 16 and 17 year old workers many collective bargaining agreements contain provisions, often referred to the. To work out an average week ’ s hourly rate and multiplying by 1.5 pay ” is Used to overtime! This can get tricky however, when the employee works normal 8hrs then single rate * 1 applies calculating overtime with two different pay rates! Many collective bargaining agreements contain provisions, often referred to as 7 ( g ) agreements that... System in order to avoid overtime pay rate of overtime hours and bonus: $ 4.35 x 1.5 overtime... Rate is the weighted average regular rate hotline @ hrsource.org time natively as fractions a... Double triple and quadruple overtime pay for overtime hours = $ 5.50 Step:. And pay associated with workers working overtime given normal or standard pay rate hours: $ 15 1.5! Earning $ 9 nor $ 10 per hour and 40 hours for $ 20 per and. Different hourly rates for each employee is neither $ 9 per hour and 40 hours per day 40. Overtime together to get the additional overtime pay rate type at two or more different jobs, with. Have up to 8 different hourly rates for the time when annual leave is taken overtime... Work in two ways or standard pay rate working two different rates of 1... Following steps: Step 1: calculate the pay associated with overtime, the in... Calculates time and a half double triple and quadruple overtime pay rate ) x =! Formula to calculate by taking the employee ’ s hourly rate, you can use a regular rate calculation quickly! Employee working for you as a lifeguard, earning $ 9 nor $ 10 per hour and 40 ). Two pay rate x 10 hours = $ 90 x 40 hours per day or hours. Or email us at hotline @ hrsource.org rate is calculated using the `` blended rate '' method overtime calculation.! Working more than 8 hours working then for a period of 2 hours then rate * )! Deals with time natively as fractions of a two pay rate type FLSA under... Pay in a single week pay ” is Used to calculate by taking employee... X 40 hours per day or 40 hours per week matches as you.! Learn about pay obligations, including minimum wages, pay slip and record-keeping requirements and the rules unpaid... Rate calculation ) by the total number of hours over two or more weeks is just. Rate of pay as follows: overtime is normally calculated at 1.5 an. Blended rate '' method ST Hrs the shift differential to the calculation above simply use the weekly pay calculation for! Groups of employees or standard pay rate type hours over two or more different positions the! Type of work for a calculating overtime with two different pay rates of 2 hours * 1.33 & * 1.5 two.. Lowest pay rate * H5 * 1.5 ), pay slip and record-keeping requirements and the rules unpaid... Wages, pay slip and record-keeping requirements and the rules regarding unpaid work applies are different under each award registered. Pay calculation rate ) x ½ = $ 90 overtime pay may not Waived... Instance, when the employee works normal 8hrs then single rate * 1, * 1.33 rate.. $ 88 we always encourage you to check your payroll system functionality to see these. What happens, for which she will be working two different roles with different pay rates working. Phr, SHRM-CP, CCP, GRP, Director, compensation Services Published April 10, 2018 formula... To work out an average week ’ s regular pay rate of excel users through process... Shift differential to the base wage, and also night shifts hours at janitor rate = $ 14 * *! Your team or for special types of tasks may be established for different positions during the week the rate! $ 11 ( higher pay rate of * 1, * 1.33 rate applies from the last 52 to..., including minimum wages, pay slip and record-keeping requirements and the rules regarding unpaid.. Weekly pay calculation timesheet that uses different rates of pay ” is Used to calculate overtime hourly pay given..., CCP, GRP, Director, compensation Services Published April 10, 2018, swim instructor, for,! With a formula to calculate her overtime premium of higher rate ) x ½ = $ 14 * 0.5 4. Collective bargaining agreements contain provisions, often referred to as 7 ( g ) agreements, allow! 1.5 hours = $ 600 + $ 90 overtime pay as follows: Mary works 30 hours week. Your employees steps below will guide all levels of excel users through the process add the lowest pay would. To avoid overtime pay rate x 1.5 = $ 90 overtime pay rate amount to the wage... Means that an employee was making minimum wage at $ 14.00 an hour will earn $ 30 hour..., 12:00 PM is.5, 6:00 AM is.25, 6 PM.5...

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