Blended Overtime Calculator

Formula

The formula to calculate the Blended Overtime Rate is:

\[ \text{Blended Overtime Rate} = \frac{RR \cdot RH + OR \cdot OH}{TH} \]

Where:

$\text{Blended Overtime Rate}$ is the overall rate for both regular and overtime hours
$RR$ is the hourly rate for regular hours
$RH$ is the total number of regular hours worked
$OR$ is the hourly rate for overtime hours
$OH$ is the total number of overtime hours worked
$TH$ is the sum of regular hours and overtime hours

What is 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.

Example Calculations

Example 1:

Regular Rate (RR) = $20
Regular Hours (RH) = 35
Overtime Rate (OR) = $30
Overtime Hours (OH) = 10

Using the formula:

\[ \text{Blended Overtime Rate} = \frac{20 \cdot 35 + 30 \cdot 10}{35 + 10} = \frac{700 + 300}{45} = \frac{1000}{45} \approx 22.22 \]

The Blended Overtime Rate is approximately $22.22 per hour.

Example 2:

Regular Rate (RR) = $25
Regular Hours (RH) = 40
Overtime Rate (OR) = $37.50
Overtime Hours (OH) = 5

Using the formula:

\[ \text{Blended Overtime Rate} = \frac{25 \cdot 40 + 37.5 \cdot 5}{40 + 5} = \frac{1000 + 187.5}{45} = \frac{1187.5}{45} \approx 26.39 \]

The Blended Overtime Rate is approximately $26.39 per hour.