When an employee works under more than pay rate,
Labor Management supports compliance with regulations requiring weighted average overtime calculations. For example, at a location configured with an overtime labor pay rule using 1.5 as the wage modifier, an employee might work the following two jobs and pay rates:
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Bartender, $10 per hour, 10 hours
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Kitchen, $12 per hour, 32 hours
Without factoring overtime pay, the employee would earn $100 (10 x 10) for the bartending shifts and $384 (12 x 32) for the kitchen shifts, for a total of $484. Because the employee worked two hours over the weekly threshold of 40 hours,
Labor Management uses the following formulas to calculate overtime pay to account for the two overtime hours:
Labor Management calculates 484 / 42 = $11.52 as the weighted average rate and [11.52 x (1.5 - 1)] = $5.76 as the overtime rate. Multiply the overtime rate by the number of overtime hours worked to determine the overtime pay: 5.76 x 2 = $11.52.