Multiple hourly rates
How is overtime calculated when you earn two hourly rates?
For a covered, nonexempt employee working two differently paid jobs for the same employer in one workweek, the usual federal method weights each rate by hours worked. In the example below, 30 hours at $20 plus 15 hours at $30 produces $1,108.33 in gross wages, including a $58.33 overtime premium. Do not simply average the two rates or choose the rate for the last shift.
All examples are hypothetical gross-wage calculations under the ordinary FLSA over-40-hours rule. They assume established lawful straight-time rates, payment for every hour worked, no tip credit, no special overtime exemption or alternative agreement, and no additional state or contractual premium. The base example has no bonuses or other includable pay. This is not a determination of an individual worker's legal entitlement.
Combine the work, not just the job titles
A second role or department at the same employer does not give each job its own 40-hour threshold. Under DOL Fact Sheet #23, combine the week's earnings at the different rates and divide by all hours worked to find the weighted regular rate. This is the method described in 29 CFR 778.115. Separately employed jobs and joint-employment questions need their own analysis; this example involves one employer.
Worked example: 30 hours at $20 and 15 hours at $30
Suppose an employee performs 30 hours of stockroom work at $20 per hour and 15 hours of equipment setup at $30 per hour. Both rates pay straight time for every hour in that role, including any hours beyond 40. There are no unpaid breaks counted as work and no paid leave in the 45 hours.
| Calculation step | Calculation | Result |
|---|---|---|
| Stockroom straight-time pay | 30 x $20 | $600.00 |
| Setup straight-time pay | 15 x $30 | $450.00 |
| Total hours worked | 30 + 15 | 45 hours |
| Straight-time earnings for all hours | $600 + $450 | $1,050.00 |
| Weighted regular rate | $1,050 / 45 | $23.33333... per hour |
| Federal overtime hours | 45 - 40 | 5 hours |
| Additional half-time premium | ($1,050 / 45) x 0.5 x 5 | $58.33 |
| Total gross wages | $1,050 + $58.33 | $1,108.33 |
The extra factor is 0.5, not 1.5, because $1,050 already pays straight time for all 45 hours. Adding another 1.5 times the regular rate for five hours would count their straight-time component twice. Under this weighted method, the order of the two jobs does not change the result when their weekly hours and earnings stay the same.
Keep precision until the premium is calculated
Carry $1,050 / 45 through the calculation instead of treating the displayed $23.33333... as a rounded input. The unrounded half-time amount is $11.66666... per overtime hour. Rounding that first to $11.67 and multiplying by five gives $58.35, two cents above the example's $58.33. Round the completed premium to cents, then add it to straight-time wages. A displayed rate with fewer decimals need not be the rate actually used by payroll.
An unweighted average is a different error: ($20 + $30) / 2 = $25.00. That produces a $62.50 premium and $1,112.50 total, not the weighted result. The employee worked twice as many hours at $20 as at $30, so those rates cannot receive equal weight.
A bonus can change the regular rate
The base example assumes hourly wages are the only includable compensation. A promised production or attendance bonus generally belongs in the regular rate unless a statutory exclusion applies. Calling it discretionary does not establish an exclusion. See DOL Fact Sheet #56C.
As a separate hypothetical variation, add a $90 nondiscretionary production bonus earned entirely in this same 45-hour week. Includable earnings become $1,140.00; the regular rate is $1,140 / 45 = $25.33333...; the premium is ($1,140 / 45) x 0.5 x 5 = $63.33. Gross wages become $1,203.33, which is $95.00 more than the base example: the $90 bonus plus $5.00 in additional overtime. A bonus covering several weeks requires allocation and possible overtime adjustments for those weeks, not automatic assignment to the payment week.
When can payroll use the rate for the overtime job?
The section 7(g)(2) alternative is not a retroactive choice of whichever rate is cheaper. Under 29 CFR 778.417 and 778.419, an employer and employee must agree before the work to the alternative for different kinds of work. Each rate must be genuine, meet the applicable minimum and actually apply to that work outside overtime. Overtime is paid at least at 1.5 times the applicable job rate; qualifying premium hours must cover at least the required overtime hours. Minimum-wage safeguards and overtime on other includable compensation still apply. The official Part 778 text, sections 778.415-778.421 sets out the conditions.
Ask payroll which method applies and for the agreement and time records supporting an alternative. A worker's consent alone does not waive overtime. State law or a contract may require more than this federal example, including daily premiums or different regular-rate treatment. For that separate issue, see the California bonus and regular-rate example; do not use its state-specific formula as a universal two-rate rule.
Common errors to check on the pay stub
- Resetting overtime at a department transfer. Keep both job codes in the same workweek calculation.
- Averaging workweeks. A 45-hour week followed by a 35-hour week still has five overtime hours in the first week, even though the biweekly average is 40. Use the employer's fixed seven-day workweek, not the check's payment interval.
- Using paid hours without checking hours actually worked. Vacation or holiday pay does not automatically count as federal overtime hours.
- Leaving out includable earnings, such as ordinary shift differentials, or adding an already-counted differential twice. Ask for the earnings included in the regular-rate numerator.
- Confusing the $58.33 additional premium with all pay for overtime hours, or with take-home pay. Reconcile the complete gross wage lines first.
What the calculator can and cannot reproduce
The overtime calculator has a single-rate limitation: it accepts one hourly rate, weekly hours and a multiplier, not separate hours at two rates or bonus allocation. It cannot audit this two-job ledger. Entering $20 or $30 for all 45 hours answers a different question; entering a rounded blended rate can change the cents. Use the worked calculation above and request payroll's unrounded regular rate, rate-by-rate hours and premium calculation for a direct comparison.
Sources checked September 7, 2026: DOL Fact Sheet #23, DOL Fact Sheet #56C, and GovInfo's latest available annual 29 CFR Part 778 text (July 1, 2025 edition), including sections 778.115, 778.209, 778.417 and 778.419. eCFR 778.115 is the current-text reference; direct eCFR retrieval was unavailable during this review, so the regulation text was checked through GovInfo alongside DOL guidance. Calculations are constructed examples, not payroll records.