When an employee works multiple jobs at different pay rates within the same pay period, overtime is calculated using a weighted average rate of pay in accordance with USDOL guidelines.
Calculate gross wages with weighted overtime
- Calculate total job pay: Multiply each job's hourly rate by all hours worked in that job (including overtime hours), then add those totals together.
- Find the weighted average rate: Divide total job pay by total hours worked across all jobs in the pay period.
- Calculate additional overtime pay:
- Multiply the weighted average rate by 50% (for regular overtime) or 100% (for double overtime).
- Multiply that result by the total overtime hours.
- Calculate total gross wages: Add total job pay and total overtime pay together.
Step-by-step formula breakdown
- Step 1: (Primary job hours + OT hours) × Primary pay rate = Primary job pay
- Step 2: (Additional job hours + OT hours) × Additional pay rate = Additional job pay
- Step 3: Primary job pay + Additional job pay = Total job pay
- Step 4: Total job pay ÷ Total hours worked (both jobs) = Weighted average rate
- Step 5:
- Primary OT pay = Weighted average rate × 0.5 × OT hours
- Additional job OT pay = Weighted average rate × 0.5 × OT hours
- Step 6: Total job pay + Primary OT pay + Additional job OT pay = Total gross wages
📌 Note: Paystubs and payroll reports may display weighted overtime rates slightly differently due to system formatting, but the total net pay remains the same.
Need to identify an employee's primary and additional pay jobs? Go to the employee's profile and open the Employment Info seciton. 
Example calculation 🧮
An employee works 20 hours at $15/hr (Job A) and 25 hours at $20/hr (Job B) in a single week. This equals 45 total hours, resulting in 5 hours of regular overtime.
- Calculate total job pay:
- Job A: 20 hrs × $15 = $300
- Job B: 25 hrs × $20 = $500
- Total job pay = $800
- Find the weighted average rate:
- $800 ÷ 45 total hours = $17.78/hr
- Calculate additional overtime pay (50% premium):
- Overtime rate: $17.78 × 0.5 = $8.89/hr
- 5 overtime hours × $8.89 = $44.45
- Calculate total gross wages:
- $800 (job pay) + $44.45 (overtime pay) = $844.45
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