Weighted Average Overtime Calculator

Calculate Weighted Average Overtime





Formula

The formula to calculate the Weighted Average Overtime (WAOT) is:

\[ \text{Weighted Average Pay Rate} = \frac{\text{Total Compensation}}{\text{Total Hours Worked}} \]

\[ \text{Weighted Overtime Rate} = \text{Weighted Average Pay Rate} \times 1.5 \]

Where:

What is Weighted Average Overtime?

Weighted Average Overtime (WAOT) is used to calculate overtime pay for employees who work multiple jobs with different pay rates. It ensures that the overtime pay reflects the average rate of pay across all jobs [^1^][^2^].

Example Calculation

Consider an example where the hours worked, pay rates, and overtime hours are:

Using the formula to calculate the Weighted Average Overtime:

\[ \text{Total Compensation} = (20 \times 15) + (15 \times 20) + (10 \times 25) = 300 + 300 + 250 = 850 \]

\[ \text{Total Hours Worked} = 20 + 15 + 10 = 45 \]

\[ \text{Weighted Average Pay Rate} = \frac{850}{45} \approx 18.89 \]

\[ \text{Weighted Overtime Rate} = 18.89 \times 1.5 \approx 28.33 \]

\[ \text{Overtime Pay} = 28.33 \times 5 \approx 141.65 \]

This means that the overtime pay for this example is approximately 141.65.