<\/p>\n
In a bid to stay profitable, many businesses are operating with a lean staff. But even with fewer employees, work still needs to get done in a timely manner, so it\u2019s no surprise that some companies are increasingly asking employees to put in more hours. Calculating overtime pay for non-exempt, or hourly workers\u2014who must generally be paid 1.5 times their base hourly pay once they work more than 40 hours in a week\u2014is pretty simple.<\/span><\/p>\n An employee may do different tasks at different hourly rates<\/b><\/span><\/p>\n But what happens if an employee has two or more job titles at the same business, and receives a different base hourly pay for each job? Then things get a little more complicated, but it\u2019s not too tough to determine the wages that are due.<\/span><\/p>\n Basically, the employer determines a \u201cblended\u201d overtime rate by using the \u201cweighted averaged\u201d method. The first step is to determine the total gross wages due on a straight-time basis (hours worked at job title \u201cA\u201d times hourly rate, plus hours worked at job title \u201cB\u201d times the \u201cB\u201d hourly rate, and so on). Then take that gross total and divide it by the total number of hours worked to obtain the \u201cregular\u201d blended hourly wage. <\/span><\/p>\n Now take that blended \u201cregular\u201d hourly wage and divide it in half to determine the additional \u201cpremium\u201d (half-time) rate that\u2019s due to the employee. Finally, add that \u201cpremium\u201d rate to the \u201cregular\u201d blended rate, and multiply that by the number of hours worked in excess of 40 hours. Voila, you have the blended overtime premium that\u2019s owed to the employee.<\/span><\/p>\n An example<\/b><\/span><\/p>\n Here\u2019s an example. Let\u2019s assume that William works as an hourly draftsman at $22.00 an hour; but is so talented that he also spends part of each week developing his employer\u2019s Web site, for which he gets $39.00 an hour. Let\u2019s further assume that in a single week, William works for 30 hours as a draftsman, but puts in another 15 hours developing the company\u2019s Web site.<\/span><\/p>\n So in this week, William put in a total of 45 hours. He earned $660 (30 hours x $22.00 an hour) for his draftsman\u2019s work, and $585 (15 hours x $39.00 an hour) for his Web development work. We would calculate William\u2019s<\/em> overtime rate as follows:<\/span><\/p>\n 30 hours x $22.00 per hour = $660<\/span><\/p>\n 15 hours x $39.00 per hour = $585<\/span><\/p>\n Total gross = $1,245<\/span><\/p>\n That total straight-time gross ($1,245.00) is then divided by the total hours worked (45) to calculate the \u201cregular\u201d (straight-time) blended hourly wage, which is equal to $27.67 per hour. Of course, William is still due the additional premium pay (half-time) for the five overtime hours he worked. So the average \u201cblended\u201d straight time hourly rate ($27.67) is divided in half, yielding a half-time rate of $13.83 (rounded to the nearest tenth) per hour.<\/span><\/p>\n The 5 overtime hours are multiplied by the \u201cblended\u201d overtime premium of $13.83, to yield a total \u201cpremium pay\u201d of $69.17 (if you do the multiplication, the difference is due to rounding), which is added to the original gross amount of $1,245.00, giving us the new gross amount of $1,314.17, which is the amount that must be paid to William for the week.<\/span><\/p>\n Both the state and US Department of Labor are paying more attention to wage-and-hour calculations, and an increasing number of wage and hour lawsuits are being filed. To stay on the safe side, be sure to consult with your accounting and\/or legal advisor if you have any employee classification, overtime or other questions.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Overtime calculations for employees with two different rates of pay for two different job titles<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,20],"tags":[164],"class_list":{"0":"post-2515","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-overtime-pay","7":"category-staffing-agencies","8":"tag-overtime-wages","9":"entry"},"_links":{"self":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/comments?post=2515"}],"version-history":[{"count":0,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/posts\/2515\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/media?parent=2515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/categories?post=2515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ua-cpas.com\/blog\/index.php\/wp-json\/wp\/v2\/tags?post=2515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}