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What Is a Weighted Salary Average?
According to the Fair Labor Standards Act, a weighted salary average is one option for computing the regular pay rate for an employee who works more than 40 hours in a single workweek in two or more different roles that have different salaries. Although by definition a weighted salary average considers both the time an employee works at each job and the corresponding pay rates, understanding the term is often easier by performing a sample calculation.
To get a weighted average for a regular pay rate, add the earnings from each job together and then divide the amount by the total number of hours -- including any overtime -- worked for all jobs. To determine how much to add for overtime, multiply the straight time rate by 0.5 to get half-time pay for the weighted regular rate and then multiply this amount by the total overtime hours.
If an employee works 45 hours at $10 per hour in a clerical position and another eight hours at $12 per hour as a call center agent, you’ll pay the employee for 53 total hours. Add the earnings from the clerical work -- $450 -- and the earnings from the call center -- $96 -- to get total straight time pay of $546. Then divide $546 by the total hours worked -- 53 -- to calculate a weighted average regular rate of $10.30 per hour. Multiply $10.30 by 0.5 to get the overtime pay rate of $5.25 and then multiply this amount by 13 overtime hours. Add the straight pay -- $546 -- and overtime pay-- $68.25 -- to get $614.25, the total pay including overtime.
Based in Green Bay, Wisc., Jackie Lohrey has been writing professionally since 2009. In addition to writing web content and training manuals for small business clients and nonprofit organizations, including ERA Realtors and the Bay Area Humane Society, Lohrey also works as a finance data analyst for a global business outsourcing company.
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