When you work two or more pay rates in the same workweek, federal law figures overtime on a blended regular rate — your total straight-time pay divided by your total hours. Hours past 40 earn an extra half of that blended rate, not 1.5× of either single rate.
How to calculate blended overtime
- Add up straight-time pay. Multiply each rate by the hours worked at it, then total them. 30 hours at $10 plus 20 hours at $12 is $300 + $240 = $540.
- Find the regular rate. Divide that straight-time total by total hours worked: $540 ÷ 50 hours = $10.80 per hour.
- Count overtime hours. Every hour over 40 in the workweek is overtime — here, 50 − 40 = 10 hours.
- Add the half-time premium. Overtime hours owe an extra half of the regular rate: 10 × ½ × $10.80 = $54.00. Total gross is $540 + $54 = $594.00.
How the math works
The weighted-average method counts straight-time pay for every hour first, then adds a half-rate premium only for the overtime hours — because the straight-time portion of those hours is already in the total:
regular rate = total straight-time pay ÷ total hours
overtime premium = overtime hours × 0.5 × regular rate
total gross = total straight-time pay + overtime premium
The key idea is the single regular rate. The federal rule in 29 CFR 778.115 says that when an employee works at two or more rates, the regular rate for the week is the weighted average of those rates — total earnings divided by total hours. The overtime premium is then half of that one rate for each hour past 40, no matter which job or rate the overtime hours "belong" to. A common payroll mistake is to pay 1.5× of whichever rate was in effect during the 41st hour; that usually underpays the worker and isn't the federal default.
The figure that surprises people is that the overtime premium uses half the regular rate, not 1.5×. That's because each overtime hour has already been paid its straight-time rate in the first line. Adding a half-rate premium brings those hours up to one and one-half times the regular rate in total. You can read the federal floor in U.S. Department of Labor Fact Sheet #23.
Worked example: two rates in one week
Devon does two jobs for the same employer. This week he worked 30 hours at $10.00/hour on the floor and 20 hours at $12.00/hour covering a delivery route — 50 hours total.
- Straight-time pay: (30 × $10.00) + (20 × $12.00) = $300 + $240 = $540.00
- Regular rate: $540.00 ÷ 50 hours = $10.80/hour
- Overtime hours: 50 − 40 = 10 hours
- Overtime premium: 10 × ½ × $10.80 = $54.00
- Total gross pay: $540.00 + $54.00 = $594.00
Paid the wrong way — 1.5× of the lower $10 rate for the 10 overtime hours — Devon would have seen only $50 of premium instead of $54. The gap grows as the two rates spread further apart.
Blended regular rate at a glance
Each row below splits a 50-hour week between two rates and shows the resulting regular rate, the half-time premium on the 10 overtime hours, and total gross pay.
| Hours & rates | Straight-time | Regular rate | OT premium (10 h) | Total gross |
|---|---|---|---|---|
| 30 @ $10 + 20 @ $12 | $540.00 | $10.80 | $54.00 | $594.00 |
| 25 @ $15 + 25 @ $20 | $875.00 | $17.50 | $87.50 | $962.50 |
| 40 @ $18 + 10 @ $25 | $970.00 | $19.40 | $97.00 | $1,067.00 |
| 45 @ $22 + 5 @ $16 | $1,070.00 | $21.40 | $107.00 | $1,177.00 |
The two legal methods
The weighted average above is the default. Federal law also allows one alternative, under 29 CFR 778.419: if there's an agreement before the work is performed, overtime may be paid at 1.5× the rate in effect during the overtime hours instead of the blended rate. Without that prior agreement, the weighted-average method is what the FLSA requires, so it's the method this calculator uses. State rules can differ — a few states (notably California) add daily overtime and their own regular-rate wrinkles — so check the law where you work if you're near a state threshold.
Frequently asked questions
Which rate is my overtime based on if I work two rates?
By default, neither single rate — it's based on the weighted average of both. Add up everything you earned at straight time, divide by all the hours you worked, and that blended figure is your regular rate. Overtime hours past 40 earn an extra half of that rate. The only exception is if you agreed in advance to be paid at the rate in effect during the overtime hours.
Can my employer just use the lower rate for overtime?
Not under the federal default. Paying overtime at 1.5× the lower of two rates generally underpays you, because it ignores the higher-rate hours that are part of your regular rate for the week. The lawful shortcut — 1.5× the rate in effect during the overtime — requires an agreement made before the work, not chosen after the fact to pay the smaller amount.
Does this apply to two different jobs for the same employer?
Yes. If you work two roles at different rates for one employer in the same workweek, the hours combine and the regular rate is the weighted average across both jobs. Working for two genuinely separate, unrelated employers is different — each tracks its own 40-hour week.
What if I also earned a nondiscretionary bonus that week?
A nondiscretionary bonus — production, attendance, or shift bonuses promised in advance — is also part of the regular rate. Add the bonus to your total straight-time pay before dividing by total hours, which raises the regular rate and the overtime premium. Truly discretionary bonuses and most gifts are excluded. This calculator covers multiple hourly rates; for a bonus, fold its dollar amount into one of the rate lines or add it to straight-time pay by hand.
Do commissions or shift differentials change the regular rate too?
Yes — commissions, shift differentials, and most premium pay are part of the regular rate, just like a second hourly rate. A shift differential is the most common case, which is why the shift differential calculator handles it directly: it's a two-rate week where the second "rate" is your base plus the differential.
Is the result gross or take-home pay?
Gross. Everything here is gross pay before taxes and other deductions. Your take-home amount will be lower once withholding comes out, which depends on your individual situation and isn't modeled here.