Highlights
- When employees perform multiple jobs with different hourly rates within the same workweek, calculating overtime requires a “blended rate” to ensure accurate and fair compensation.
- The blended rate is determined by dividing the employee’s total weekly earnings (from all jobs) by the total number of hours worked that week.
- EPAY’s time and attendance solution simplifies payroll calculations for your hourly workforce, automatically calculating blended overtime rates. Schedule a free demo to see how it works.
Calculating overtime is generally straightforward for employees with a single hourly rate. According to the Fair Labor Standards Act (FLSA), eligible employees must receive overtime pay at 1.5 times their regular hourly wage for all hours worked exceeding 40 in a standard workweek.
However, for those who perform multiple jobs with varying pay rates within the same workweek, calculating overtime can be more complex. In such cases, employers must use a blended overtime rate. For instance, consider a warehouse employee who earns $15 per hour as a general warehouse worker and $18 per hour while operating a forklift. If this employee works 45 hours a week, with 30 hours as a warehouse worker and 15 hours as a forklift operator, their employer would need to calculate a blended rate to determine their overtime pay.
Let’s explore this concept in more detail!

What Is Blended Overtime?
The Fair Labor Standards Act requires that when work is performed at two or more rates, overtime must be paid out at a blended overtime rate, also known as weighted overtime or weighted average. A “blended rate” is a rate of not less than 1.5 times the weighted average of all non-overtime rates used during that workweek.
This type of payroll calculation is required when you have employees who perform different duties or tasks at different rates.
How to Calculate Blended Overtime Rates? A Calculator Formula
Follow these steps to calculate overtime with two different pay rates:
- Determine the employee’s base pay:
- Multiply the number of hours worked in both roles by hourly rates.
- Determine the sum of the total wages from these positions to figure out the total amount compensated.
- Calculate the blended rate:
- Divide the total weekly earnings by the total number of hours worked in the week.
- Calculate Overtime Pay:
- Determine the number of overtime hours worked (hours worked exceeding 40 in a standard workweek).
- Multiply the blended rate by 1.5 to find the overtime rate.
- Multiply the overtime rate by the number of overtime hours to calculate the overtime pay.
- Calculate the total earnings:
- Add the total weekly earnings to the overtime pay.
Blended Overtime Rate Calculation Example
You own a building service contracting company and your employees perform a variety of duties at the following rates:
Your employee acts as a supervisor at $20 per hour, washes floors at $15 per hour, and empties trash at $10 per hour. When an employee works over 40 hours a week, how do you calculate their overtime rate? Let’s assume the employee supervised for 20 hours, washed floors for 20 hours, and emptied trash for 10 hours in a workweek. The blended rate would be determined by the following overtime rate calculation formula:
20 hours x $20 + 20 hours x $15 +10 hours x $10 = $800; $800/50 total hours = $16 per hour
Therefore, $16 per hour is the blended rate. The premium pay for overtime is then half of $16, $8, multiplied by the 10 overtime hours for a total of $80. Total compensation would be $880 for this week. Using the blended rate, the overtime rate may change as the total hours worked in a week change. For instance, if the employee worked 5 hours supervising, 25 hours washing floors, and 20 hours emptying trash, the blended rate per hour would be $13.50.
Employers must calculate this every single week for each employee who performs work at different rates. All rates must be over minimum wage, and the regular rate must include any other compensation, such as bonuses, cost-of-living adjustments, and the like.

Why You Need a Blended Overtime Rate Calculator
Calculating overtime for employees who perform multiple jobs with varying pay rates can be complex. Manually calculating blended overtime rates is prone to errors, which can lead to inaccurate pay and potential legal issues.
A blended overtime rate calculator can significantly streamline this process. A blended overtime rate calculator takes into account the weighted overtime rate and uses a multiplier coefficient of 0.5 to calculate the blended overtime pay rate. By automating the calculations, these tools help ensure accurate and compliant overtime pay for all employees. This not only improves payroll accuracy but also minimizes the risk of costly penalties and legal disputes related to non-compliance with labor laws.
Overtime Blended Rate Calculation Made Simple
EPAY’s time and attendance solution can calculate blended rates for your employees who work overtime at varying pay rates within the same pay period.
Specifically, this solution allows you to:
- Identify employees that will be paid based on a blended rate.
- Specify which rate types would participate in the blended rate calculation.
- Process the blended rate, based on hours worked and applicable regular pay, and use that to decide the final pay of the employee.
- Display blended rates on the screen and in printed reports and exports.
Using EPAY’s time and attendance system, you’ll be able to conduct blended rate calculations easily. Our software also makes it easy to manage other aspects of your business, giving you everything you need for effective workforce and labor management. With a complete human capital management solution, payroll software, and workforce management software from EPAY, you can have even more control over every aspect of your business.
Get a personalized demonstration of EPAY’s full human capital management suite to see all the ways EPAY can help you.