Weighted
Average (Blended) Overtime Example Calculations
For this example, assume that an employee normally
earns $10 an hour working at trade shows, but
receives a premium flat rate of $8.75 an hour
for travel time. In one week the employee has
earned 10 hours of travel time, and 40 hours worked
at trade show. The employee in question earns
“Daily” overtime.
Regular Rate Calculation
The Weekly
Hours Compensation is calculated. All hours
worked during the week at different associated
rate amounts are taken. Overtime hours are
included, but at the rate worked with overtime
not yet applied.
From
the Pay Codes section of the program, Holidays
and Absences are excluded, and Premiums and Regular
amounts are included (as this only applies to
amounts from hours worked). Hours can earn the
Base Rate, Pay Level, and Premiums.
The
Total Weekly Compensation is calculated. Any
Premium amounts awarded during the week are
added.
The
ability exists to include or exclude Disbursements.
The Regular
Rate/Average Rate is calculated. The Total
Weekly Compensation is divided by Weekly Total
Hours (worked hours only).
From
the Threshold Pay Codes, any Worked pay codes
and applicable Premium Pay Codes are included,
and Holiday and Absence pay codes are excluded.
Weighted Average (Blended) Overtime Calculation
Important:
Note that overtime rules for the state of California
are different than those of other states. The
following example uses the California OT formula
of:
(Regular Rate
* Multiplier) + Current Rate.
From the above example, assume that the same
employee earned 2 hours of “Daily” overtime during
the trade shows, 2 hours of “Daily” overtime for
travel, and 6 hours of “Weekly” overtime for trade
shows.
The Weighted
Average Overtime Rate (Blended OT) is calculated
using the following formula: Regular
Rate * Overtime Multiplier = Overtime Rate
The Earned
Overtime Amount is calculated using the following
formula: Overtime
Rate + Actual Rate = Blended Overtime Rate.
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