How is overtime calculated for an employee paid two different hourly rates?
HRCalifornia
When an employee is paid two hourly rates in a workweek, overtime is calculated using a weighted average regular rate.
The weighted average is determined by dividing total weekly compensation by total hours worked, including overtime hours.
Overtime is then paid at one-half the weighted average rate, and double time at the full weighted average rate.
For example, an employee earns $20 per hour for 35 hours ($700) and $25 per hour for 15 hours ($375), totaling $1,075 for 50 hours worked. The regular rate is $1,075 divided by 50
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