Blended Overtime Rate for Two Different Pay Rates: The FLSA Method
Working two jobs or two pay rates for one employer? Federal law requires a blended (weighted-average) regular rate for overtime. Here's exactly how to calculate it.
When an employee earns two different hourly rates for the same employer in one week — a server who also preps in the kitchen, a nurse who picks up a higher-paid shift — overtime is not calculated at either rate. Federal law requires a blended regular rate, and getting it wrong is one of the most common (and most penalized) payroll mistakes.
Under the FLSA, when a nonexempt employee works at two or more pay rates in the same workweek, overtime must be paid at 1.5× the blended (weighted-average) regular rate — total straight-time earnings divided by total hours worked. You cannot just apply time-and-a-half to whichever rate the overtime hours "belong" to.
Calculate the blended regular rate here:
The Correct Method, Step by Step
- Total straight-time pay: multiply hours at each rate by that rate, then add.
- Total hours: add up all hours worked in the week.
- Regular rate: divide total straight-time pay by total hours.
- Overtime premium: for each hour over 40, add 0.5× the regular rate (the straight-time portion is already counted in step 1).
Regular Rate = Total Straight-Time Earnings / Total Hours Worked
Overtime Premium = 0.5 × Regular Rate × Overtime Hours
Worked Example
An employee works 30 hours at $20 (skilled work) and 20 hours at $15 (general work) — 50 hours total, 10 of them overtime:
| Rate | Hours | Straight-time pay |
|---|---|---|
| $20/hr | 30 | $600 |
| $15/hr | 20 | $300 |
| Total | 50 | $900 |
- Regular (blended) rate: $900 ÷ 50 = $18.00/hr
- Overtime premium: 0.5 × $18.00 × 10 = $90
- Total pay: $900 + $90 = $990
Note the overtime is based on $18, not $20 or $15. Paying OT at the higher $20 rate overpays; paying at $15 underpays and violates the FLSA.
Common Mistakes
- Using the higher rate for all OT. Overpays and sets a bad precedent, but at least it's legal.
- Using the lower rate for all OT. Underpays — a direct FLSA violation with back-pay and penalty exposure.
- Forgetting nondiscretionary bonuses. Shift differentials and production bonuses must be folded into the regular rate too, as covered in FLSA regular rate rules. If you work day and night shifts at different rates, our shift differential calculator handles the weighting for you.
Frequently Asked Questions
How do I calculate overtime for an employee with two pay rates?
Add all straight-time earnings (hours × rate for each job), divide by total hours worked to get the blended regular rate, then pay an extra 0.5× that regular rate for each hour over 40. The straight-time portion of the overtime hours is already included in total earnings.
Which rate is overtime based on when I work two jobs?
Neither individual rate. The FLSA requires overtime to be based on the weighted-average regular rate — your total straight-time pay divided by your total hours. This blended rate falls between your two pay rates, weighted by how many hours you worked at each.
Is the weighted-average overtime method required by law?
Yes, by default. Under the FLSA, when an employee works at multiple rates in one workweek, overtime must use the weighted-average regular rate — unless the employer and employee agree in advance to use the rate in effect during the overtime hours.
Do bonuses affect the blended overtime rate?
Yes. Nondiscretionary bonuses and shift differentials must be included in total straight-time earnings before computing the regular rate. Only truly discretionary bonuses are excluded. Leaving required bonuses out understates the regular rate and the overtime owed.
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