Overview

If a user works more than one position with different pay rates in the work week, When I Work calculates a user’s overtime using the weighted average wages of the positions worked.

Considerations

• Weighted average overtime is currently only supported on weekly or every two week pay periods.
• Weighted average overtime is only calculated on the pay period exports.

Weighted average overtime calculation

Calculate weighted average overtime by following these steps:

1. Calculate the ratio of hours worked across all positions worked. Divide the hours worked in a certain position by the total worked hours.
2. Find the number of overtime hours attributable to each position. Take the total number of hours worked in the week and subtract by the weekly overtime threshold. Then multiply by the ratio of hours worked for that position.
3. Find the regular worked hours for each position. Subtract the total hours worked in a position from the number of overtime hours that are attributable to that position.
4. Calculate the regular pay for each position by multiplying the regular hours by the the position’s wage rate. Then calculate overtime hours for each position by multiplying the overtime hours by the positions wage rate multiplied 1.5
5. Calculate the attributed pay. Add together the regular and overtime pay for each position.

Example calculation

In this example:

• The user works two different positions during the week:
  • Roaster at $20/hour for 8 hours.
  • Barista at $10/ hour for 40 hours.
• The account’s weekly overtime threshold is set to 40 hours/week.

1. Calculate the regular earnings for each position worked:
   

   Position	Roaster
   Calculation	$20 x 8 = $160
   Position	Barista
   Calculation	$10 x 40 = $400

   Position	Calculation
   Roaster	$20 x 8 = $160
   Barista	$10 x 40 = $400

2. Add these together, then divide by total hours worked to get weighted average rate:
   

   Action	Add together
   Calculation	$160 + $400 = $560
   Action	Divide by total hours
   Calculation	$560/48 = $11.67

   Action	Calculation
   Add together	$160 + $400 = $560
   Divide by total hours	$560/48 = $11.67

3. Multiply weighted average rate by 1.5 to get weighted overtime rate:
   

   $11.67 x 1.5 = $17.51 ($17.505 rounded up)

   $11.67 x 1.5 = $17.51 ($17.505 rounded up)

4. Multiply the overtime rate by the number of overtime hours to get overtime earnings:
   

   $17.51 x 8 = $140.08

   $17.51 x 8 = $140.08

5. Multiply the weighted average rate by the number of non-OT hours to get regular time earnings:
   

   $11.67 x 40 = $466.80

   $11.67 x 40 = $466.80

6. Add overtime earnings plus regular time earnings to get total pay amount:
   

   $140.08 + $466.80 = $606.88

   $140.08 + $466.80 = $606.88