If a user works more than one position with different pay rates in the work week, When I Work calculates a user’s overtime using the weighted average wages of the positions worked.
- Weighted average overtime is currently only supported on weekly or every two week pay periods.
- Weighted average overtime is only calculated on the pay period exports.
Calculate weighted average overtime by following these steps:
- Calculate the ratio of hours worked across all positions worked. Divide the hours worked in a certain position by the total worked hours.
- Find the number of overtime hours attributable to each position. Take the total number of hours worked in the week and subtract by the weekly overtime threshold. Then multiply by the ratio of hours worked for that position.
- Find the regular worked hours for each position.Subtract the total hours worked in a position from the number of overtime hours that are attributable to that position.
- Calculate the regular pay for each position by multiplying the regular hours by the the position’s wage rate. Then calculate overtime hours for each position by multiplying the overtime hours by the positions wage rate multiplied 1.5
- Calculate the attributed pay. Add together the regular and overtime pay for each position.
Example calculation
In this example:
- The user works two different positions during the week:
- Roaster at $20/hour for 8 hours.
- Barista at $10/ hour for 40 hours.
- The account’s weekly overtime threshold is set to 40 hours/week.
- Calculate the ratio of hours worked:
| Position | Roaster |
| Calculation | 8 / (8 + 40) = 16.67 % |
| Position | Barista |
| Calculation | 40 / (8 + 40) = 83.33% |
| Position | Calculation |
| Roaster | 8 / (8 + 40) = 16.67 % |
| Barista | 40 / (8 + 40) = 83.33% |
- Calculate the number of overtime hours for each position:
| Position | Roaster |
| Calculation | (48 – 40) x 16.67% =1.333333333 |
| Position | Barista |
| Calculation | (48-40) x 83.33% = 6.666666666 |
| Position | Calculation |
| Roaster | (48 – 40) x 16.67% =1.333333333 |
| Barista | (48-40) x 83.33% = 6.666666666 |
- Calculate the regular hours for each position:
| Position | Roaster |
| Calculation | 8 –1.333333333 =6.666666667 |
| Position | Barista |
| Calculation | 40 –6.666666667 =33.333333333 |
| Position | Calculation |
| Roaster | 8 –1.333333333 =6.666666667 |
| Barista | 40 –6.666666667 =33.333333333 |
- Calculate the regular and overtime pay for each position:
| Position | Roaster |
| Wage | 20 |
| Regular pay calculation | 20 x 6.666666667 = $133.3333 |
| Overtime pay calculation | 20 x 1.333333333 x 1.5 = $40.00 |
| Position | Barista |
| Wage | 10 |
| Regular pay calculation | 10 x 33.333333333 = $333.3333 |
| Overtime pay calculation | 10 x 6.666666667 x 1.5 = $100.00 |
| Position | Wage | Regular pay calculation | Overtime pay calculation |
| Roaster | 20 | 20 x 6.666666667 = $133.3333 | 20 x 1.333333333 x 1.5 = $40.00 |
| Barista | 10 | 10 x 33.333333333 = $333.3333 | 10 x 6.666666667 x 1.5 = $100.00 |
- Find the total attributed pay: (133.3333 +333.3333) + (40.00 +100.00) =$606.6667The Adjusted Hourly Rates for the example user are as follows:
| Adjusted Hourly Rate |
| 606.6667 / 48 = $12.6389 |
| Adjusted Overtime Hourly Rate |
| 140 / 8 = $17.50 |
| Adjusted Hourly Rate | 606.6667 / 48 = $12.6389 |
| Adjusted Overtime Hourly Rate | 140 / 8 = $17.50 |
FAQs
Weighted average overtime calculation
How do you calculate weighted average for overtime? ›
Steps to Calculate Weighted Average Overtime
1. Total number of private hours x agreed rate = $ Total number of PWR hours x PWR base rate = $_____ = $ Total straight-time wages earned; 2. Divide total straight-time wages earned by total hours worked = weighted average rate; 3.
Does FLSA require weighted average overtime? ›
Weighted Overtime and FLSA Compliance
The federally mandated minimal overtime rate is 1.5 times the employee's normal rate. For employees who earn only one wage, weighted overtime does not come into play. But for those who earn more than one wage in a pay period, you must average their time worked at each rate.
Is overtime 1.5 or 2x? ›
What's the difference between overtime and double time? Overtime is usually 1.5 times the regular hourly rate, and it usually kicks in when an employee works more than 40 hours per week. Double time happens after overtime is surpassed. Anywhere between 10 and 15 hours over those 40 hours incurs twice the hourly rate.
What is the average rate basis for the overtime pay? ›
According to the FLSA, the formula for calculating overtime pay is the nonexempt employee's regular rate of pay x 1.5 x overtime hours worked.
What is a weighted overtime? ›
Weighted Average Overtime (WAOT) is a calculation method used in situations in which an employee works two different jobs at two different rates of pay.
What does overtime hours weighted mean? ›
Weighted overtime is a way of calculating an overtime rate of pay when an employee works two or more shifts at different rates of pay during the pay period and working enough hours in total that they would get a specially calculated overtime rate of pay.
Is weighted average legal? ›
The DLSE manual's adoption of the weighted-average method is not binding because it reflects no expertise and special competence with the problem at issue. California law requires employers to use a method of compensation that is most economically beneficial to the group of employees at issue.
How do you calculate average overtime hours? ›
Divide the hours worked in a certain position by the total worked hours. Find the number of overtime hours attributable to each position. Take the total number of hours worked in the week and subtract by the weekly overtime threshold. Then multiply by the ratio of hours worked for that position.
What is the difference between FLSA overtime and regular overtime? ›
Under FLSA, employers are required to pay overtime wages only when employees work over 40 hours in a single workweek. However, under the California Labor Code, employers must pay workers overtime wages for working more than 40 hours in a week.
Add the bonus to the employee's total wages for the workweek. Divide the total wages for the workweek by the total hours worked for the workweek to arrive at the regular rate of pay. Multiply the regular rate of pay by 1.5 to get the overtime rate of pay.
How much is overtime for $17 an hour? ›
Overtime is when you pay your employees 1.5 times their normal rate, while double time is when you pay your employees twice their normal rate. For instance, if an employee regularly earns $17, their overtime rate is $25.5 per hour, while their double time rate is $34 per hour.
Is working 6 days in a row overtime? ›
More than 6 consecutive days in a workweek. Non-exempt employees are generally entitled to overtime pay for a seventh consecutive day of work in a workweek. Working more than 6 days in a row over two separate workweeks does not trigger overtime pay.
What is the most common overtime rate? ›
Basic overtime pay rate
Overtime hours must be paid out at least 1.5 times the employee's wage rate. This overtime rate of pay is multiplied by the total number of overtime hours that employee has worked.
What are the two most common rates of overtime? ›
Modern awards that provide for overtime require overtime to be paid:
- At 150% (time and a half) of an employee's ordinary time hourly rate for the first two or three hours of overtime worked.
- At 200% (double time) of an employee's ordinary time hourly rate after the two or three hours of overtime worked.
The results provide a window into how much overtime is too much. Twenty-five percent beyond normal weekly working hours may be the acceptable limit.
How do I calculate weighted average? ›
Simply, in order to find the weighted average, one must first multiply all values in the data set by their corresponding weights. Then, add up the resulting products and divide by the sum of the weights. When dealing with percentages, one will usually find that the sum of weights is equal to 1 or 100%.
How do you estimate the weighted average? ›
To find a weighted average, multiply each number by its weight, then add the results. If the weights don't add up to one, find the sum of all the variables multiplied by their weight, then divide by the sum of the weights.
How do you calculate weighted average rate? ›
To calculate the weighted average interest rate using this example, follow these steps.
- Step 1: Multiply each loan balance by the corresponding interest rate.
- Step 2: Add the products together.
- Step 3: Divide the sum by the total debt.
- Step 4: Round the result to the nearest 1/8th of a percentage point.
Divide the total by your time period
Dividing the total by your time period gives you your average for each unit. If you're calculating your average for a 30-day period, divide by 30. If you're calculative over a 12-month period, divide by 12.
