How does the blended rate work fo r overtime when an employee is in 2 non-exempt positions?
The blended rate is based on the total hours worked in all positions divided into total compensation earned in all positions. The blended rate of pay is applied to the premium (.5 hours) rate of pay. For example, a person worked 45 hours at a pay rate of $10 per hour and worked 40 hours in a second position at $15 per hour. Multiply 45 x $10 = $450 and 40 x $15 = $600. Add $600 + $450 = $1050 / by 85 hours = $12.35294 (blended rate) per hour. Multiply 5 x $12.35294 x 0.5 = $30.88. Total compensation is $1050 + 30.88 = $1080.88.
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