Enter all but one of the blended overtime rate, regular rate, regular hours, overtime rate, and overtime hours into the calculator to determine the total hours. This calculator can also evaluate any of the variables given the others are known.
Blended Overtime Formula
The following formula is used to calculate the blended overtime rate:
Blended Overtime Rate = (RR * RH + OR * OH) / TH
Variables:
- Blended Overtime Rate is the overall rate for both regular and overtime hours
- Regular Rate is the hourly rate for regular hours
- Regular Hours is the total number of regular hours worked
- Overtime Rate is the hourly rate for overtime hours
- Overtime Hours is the total number of overtime hours worked
- Total Hours is the sum of regular hours and overtime hours
To calculate the blended overtime rate, multiply the regular rate by the total number of regular hours worked. Multiply the overtime rate by the total number of overtime hours worked. Add the two results together. Divide the sum by the total number of hours worked (regular hours + overtime hours).
What is a Blended Overtime?
Blended Overtime is a method of calculating overtime pay for employees who work in multiple positions with different pay rates. Under the Fair Labor Standards Act (FLSA), employers are required to pay employees a rate of 1.5 times their regular rate of pay for any hours worked over 40 in a workweek. However, when an employee works in more than one position with different pay rates, the employer must calculate a “blended” or “weighted average” rate to determine the overtime pay. This is done by adding together the total earnings from all jobs for the week, and then dividing by the total hours worked in all jobs. The resulting figure is the regular rate of pay, which is then multiplied by 1.5 to calculate the overtime rate. This ensures that the employee is fairly compensated for all hours worked, regardless of the different pay rates for each job.
How to Calculate Blended Overtime?
The following steps outline how to calculate the Blended Overtime.
- First, determine the regular hours worked (RH).
- Next, determine the overtime hours worked (OH).
- Next, determine the regular hourly rate (RHR).
- Next, determine the overtime hourly rate (OHR).
- Next, calculate the total regular pay (TRP) by multiplying RH by RHR.
- Next, calculate the total overtime pay (TOP) by multiplying OH by OHR.
- Finally, calculate the Blended Overtime by adding TRP and TOP.
Example Problem:
Use the following variables as an example problem to test your knowledge.
regular hours worked (RH) = 40
overtime hours worked (OH) = 10
regular hourly rate (RHR) = $15
overtime hourly rate (OHR) = $22
Calculate the Blended Overtime.
