Blended Overtime Rate Calculator
Find the weighted average regular rate and correct overtime pay for multiple pay rates
Last updated: October 2026
If you work two different jobs for the same employer in one week, or earn a higher rate for some shifts, your overtime is not simply 1.5 times your base wage. Federal law requires a blended (weighted average) regular rate. This calculator works out that rate, your overtime premium, and your correct gross pay for the week, and it shows how much you would be shorted if overtime were paid at your lowest rate.
- Regular rate: total straight-time pay (all rates plus nondiscretionary bonuses) divided by total hours worked.
- Overtime premium: 0.5 x regular rate x overtime hours, added on top of straight-time pay.
- Blended overtime rate: 1.5 x the regular rate for every hour over 40.
- Watch out: paying overtime at the lowest rate is a common payroll error unless both sides agreed to a different method in advance.
What Is a Blended Overtime Rate?
The Fair Labor Standards Act (FLSA) says overtime must be paid at one and a half times the employee's regular rate. When someone earns one hourly wage, the regular rate is just that wage. When they earn two or more rates in the same workweek, the regular rate becomes the weighted average of all of them. This is called the blended rate, and the federal rule is spelled out in 29 CFR 778.115.
Common situations where it applies:
- A retail worker who covers both the register and shift lead duties at different rates.
- A nurse or CNA who picks up shifts in another unit with a different pay rate.
- A warehouse worker paid more for forklift hours than for picking hours.
- Anyone who earns a nondiscretionary bonus, commission, or shift differential in the same week as overtime.
The Weighted Average Overtime Formula
Why only 0.5 and not 1.5? Because every hour, including the overtime hours, has already been paid once at straight time in step 1. The overtime hours only need the extra "half" on top.
Worked Example: Two Pay Rates in One Week
Jordan works 30 hours as a cashier at $16 an hour and 15 hours as a shift lead at $20 an hour, for 45 hours in total.
- Straight-time pay: (30 x $16) + (15 x $20) = $480 + $300 = $780
- Regular rate: $780 / 45 hours = $17.33 an hour
- Overtime hours: 45 - 40 = 5 hours
- Overtime premium: 0.5 x $17.33 x 5 = $43.33
- Total gross pay: $780 + $43.33 = $823.33
The blended overtime rate is $26.00 an hour (1.5 x $17.33). If the employer had paid overtime at the $16 cashier rate, the premium would only be $40.00, and Jordan would be short $3.33 for the week. That sounds small, but across a year of regular overtime it adds up, and it is the kind of error that shows up in wage claims.
| Method | OT Premium | Total Pay | Compliant? |
|---|---|---|---|
| Weighted average (blended) | $43.33 | $823.33 | Yes (default rule) |
| Lowest rate only ($16) | $40.00 | $820.00 | No, underpays |
| Highest rate ($20) | $50.00 | $830.00 | Yes, pays more than required |
How Bonuses and Shift Premiums Change the Rate
Nondiscretionary pay must be included in the regular rate. That covers production and attendance bonuses, commissions, shift differentials, and any bonus promised in advance. Add a $50 production bonus to Jordan's week and the straight-time pay becomes $830. The regular rate rises to $18.44, the overtime premium becomes $46.11, and total pay is $876.11.
Pay that is truly discretionary, such as an unannounced holiday gift, is left out. So are premium payments that already count as overtime under the law. If you are unsure whether a bonus counts, check with your payroll department or the US Department of Labor's guidance on the regular rate.
The "Rate in Effect" Alternative
The FLSA allows one other option, found in 29 CFR 778.419. An employee and employer can agree, before the work is performed, that overtime will be paid at 1.5 times the rate of the job actually done during the overtime hours. If Jordan's overtime hours were all cashier hours and there was a prior agreement, overtime could be paid at $24 an hour (1.5 x $16). Without that agreement, the weighted average method above is required.
Two Jobs, Two Employers?
The blended rate only applies to hours worked for the same employer (or joint employers) in one workweek. If you have two unrelated part-time jobs with two different companies, each employer tracks your hours separately, and you only earn overtime from one of them if you work more than 40 hours for that employer alone.
For single-rate overtime, the Overtime Pay Calculator and Time and a Half Calculator are faster. If you work rotating 12-hour shifts, the Shift Schedule Pay Calculator shows how overtime builds up week by week.
Frequently Asked Questions
How is overtime calculated with two different pay rates?
Under the FLSA weighted average method, add up everything you earned at straight time for all hours, including nondiscretionary bonuses, and divide by your total hours. That gives your regular rate. Every overtime hour then earns an extra half of that regular rate on top of the straight-time pay you already counted.
What is a blended overtime rate?
A blended overtime rate is 1.5 times your weighted average regular rate. If you earned $780 for 45 hours at two different rates, your regular rate is $17.33 and your blended overtime rate is $26.00 per overtime hour.
Can my employer pay overtime at my lower rate?
Only in a narrow case. The FLSA allows overtime to be paid at 1.5 times the rate of the job actually performed during the overtime hours, but only if you and your employer agreed to this before the work was done. Otherwise, the weighted average method applies. Paying overtime at your lowest or base rate without that agreement usually underpays you.
Do bonuses count in the regular rate for overtime?
Nondiscretionary bonuses do. These are bonuses promised in advance for meeting a goal, such as attendance, production, or safety bonuses, plus commissions and shift differentials. Discretionary gifts, like a surprise holiday bonus, are excluded. Add the bonus for the week in the calculator and the regular rate updates automatically.
Does shift differential pay increase my overtime rate?
Yes. Shift differentials are part of your regular rate. If you earn an extra $2 an hour for night hours, those dollars go into your straight-time earnings before the weighted average is calculated. Our Shift Differential Calculator breaks down night and weekend premiums in more detail.
What is the regular rate of pay?
The regular rate of pay is the hourly rate the FLSA uses to calculate overtime. It is not always your base wage. It equals your total straight-time compensation for the workweek, including most bonuses and premiums, divided by the total hours you actually worked that week.
Calculations follow the weighted average method in the federal FLSA regulations (29 CFR 778.115). State rules can differ. This is an estimate, not legal or payroll advice.