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Weighted Average Overtime
Sometimes called “Blended Average Overtime”, this Federal Requirement is often overlooked or unknown until audit time. In summary, when an employee works at more than one straight time rate in any week (often seen when working Prevailing Wage), federal law states overtime is to be paid at a blended rate, not necessarily one and one-half times any specific hourly rate. Topics include identifying when overtime pay is required, differences and discrepancies between state and federal law, and how to properly calculate the weighted average rate.