Simplifying Blended Rate Calculation

HR Services members challenged with calculating the regular rate for overtime when a nonexempt employee performs two or more jobs at different pay rate can find help in the HR Library.

It is a common practice in school districts to employ one nonexempt employee in two different capacities with different pay rates, such as bus driver/custodian or instructional aide/bus monitor. When this occurs, the employer must ensure the overtime pay is at least the weighted average of their two rates. This is called a blended rate.

For ease, TASB HR Services members may use the HR Library Blended Rate Calculation Worksheet (xlxs, TASB login required). Simply enter the rates and hours worked and let the worksheet complete the calculations for you.

Alternatively, districts may choose to pay time and a half at the highest rate of pay to avoid the payroll complexities of calculating weighted averages.