If an employee works two or more jobs at different hourly pay rates for the same employer during a single workweek, calculating overtime is not as simple as taking 1.5x of whichever rate they worked during the overtime shift.
Under the **Fair Labor Standards Act (FLSA)** regulations (specifically 29 CFR ยง 778.115), the legal method is the **Weighted Average** (also known as the **Blended Rate** or **Regular Rate of Pay** method).
1. Calculate Total Straight-Time Earnings:
Compute what you earned at your straight-time rates for all hours worked.
• Job 1: 30 hours × $18.00 = $540.00
• Job 2: 10 hours × $22.00 = $220.00
• Total Straight-Time = $540.00 + $220.00 = $760.00
2. Calculate Blended Regular Rate:
Divide your total straight-time earnings by the total hours worked.
• Total Hours = 30 + 10 = 40 hours.
• Weighted Regular Rate = $760.00 ÷ 40 = $19.00 per hour.
3. Calculate Overtime Premium (0.5x):
Because the "straight time" (1.0x) is already paid in step 1, the overtime hours are now owed the remaining **0.5x premium** of the weighted regular rate.
• Overtime Premium Rate = $19.00 × 0.5 = $9.50 per hour.
• Overtime Premium Earnings = 5 overtime hours × $9.50 = $47.50.
4. Compute Total Gross Pay:
Add your total straight-time earnings to your overtime premium earnings.
• Total Gross Pay = $760.00 + $47.50 = $807.50.
The FLSA blended rate method ensures that workers are compensated fairly based on their actual average earnings for the week. Employers are legally blocked from assigning you to lower-paying duties during overtime hours in order to pay a lower overtime rate.