FLSA Overtime Calculator

What is Weighted Overtime Under FLSA?

The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees 1.5 times their "regular rate" for all hours worked beyond 40 in a workweek. For workers who earn a single hourly rate, the math is straightforward. But many employees work multiple jobs, handle different tasks at different pay rates, or receive bonuses and other compensation that changes their effective rate from week to week.

When an employee earns two or more hourly rates in a single workweek, the employer cannot simply pick one rate for overtime. Instead, the FLSA requires a weighted average calculation. The employer totals all straight-time earnings, divides by total hours worked, and uses the resulting "regular rate" as the basis for the overtime premium. This ensures the overtime rate fairly reflects the blend of work the employee actually performed.

How to Calculate the Regular Rate

The formula for the weighted average regular rate is simple in concept:

Regular Rate = Total Straight-Time Earnings / Total Hours Worked

For each job or task, multiply the hourly rate by the hours worked at that rate. Sum all of these products to get total straight-time earnings. Then divide by the total number of hours worked across all jobs. The result is the weighted regular rate.

For example, if an employee works 25 hours at $15/hr and 20 hours at $20/hr, the total earnings are $375 + $400 = $775. Total hours are 45. The regular rate is $775 / 45 = $17.22/hr.

The OT Premium Method

Once you have the regular rate, the overtime premium is calculated at 0.5 times the regular rate, not 1.5 times. This is because the employee has already been paid straight-time wages for every hour worked — including the overtime hours. The employer only owes the additional half-time premium for each hour beyond 40.

OT Premium = Regular Rate x 0.5 x Overtime Hours

Using the example above: the employee worked 45 total hours, so there are 5 overtime hours. The OT premium is $17.22 x 0.5 x 5 = $43.06. Total Pay for the week is $775.00 + $43.06 = $818.06.

Worked Example

Consider a worker employed at a distribution center who splits time between warehouse duties at $15/hr and delivery driving at $20/hr. In a given week the schedule is:

• Warehouse: 25 hours at $15.00/hr = $375.00
• Driving: 20 hours at $20.00/hr = $400.00

Step 1 — Total Earnings: $375.00 + $400.00 = $775.00

Step 2 — Total Hours: 25 + 20 = 45 hours

Step 3 — Regular Rate: $775.00 / 45 = $17.22/hr

Step 4 — Overtime Hours: 45 - 40 = 5 hours

Step 5 — OT Premium: $17.22 x 0.5 x 5 = $43.06

Step 6 — Total Pay: $775.00 + $43.06 = $818.06

Notice the employee does not receive overtime at 1.5x the $20 driving rate or 1.5x the $15 warehouse rate. The blended regular rate of $17.22 serves as the fair middle ground, and only the half-time premium is owed because straight time has already been paid.

What is Included in the Regular Rate?

The FLSA defines the regular rate broadly. It includes all compensation that is part of the employee's agreed-upon wages for services rendered. Specifically, the regular rate includes:

• Hourly wages at all rates
• Piece-rate earnings
• Commissions
• Non-discretionary bonuses (production bonuses, attendance bonuses, etc.)
• Shift differentials

The regular rate excludes certain payments that are not tied to hours worked or productivity:

• Discretionary bonuses and gifts (holiday bonuses, etc.)
• Vacation, holiday, or sick pay when no work is performed
• Employer contributions to retirement plans and insurance
• Reimbursements for business expenses
• Premium payments for overtime already at 1.5x or higher