How is overtime calculated when employees work at different rates of pay in the same workweek?
A. The average rate of pay is used to compute overtime. EXAMPLE: If an employee worked 16 hours at $10.00 per hour and 30 hours at $12.00 per hour the total straight time amount earned is $520.00. That amount is divided by total hours-worked (46), and the average hourly rate is $11.30. Since the employer has already paid the straight time rates for all hours worked, only an additional ½ times the average hourly rate is due for the overtime hours (½ x $11.30 x 6 hours = $33.90).
