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**How to calculate a blended rate**

To calculate overtime in California you need to use a blended rate. The blended rate is a weighted average of the wages worked by an employee.

This is important when employees are paid at different wages for different positions. This rate is used when no bonuses or payouts are required. To calculate blended rate:

1. Determine the hourly wage for each position. For example: Joe works as a dishwasher with the hourly wage of $13.00 and as a host with an hourly wage of $12.00

2. Determine the amount of hours worked in each position. For example: Joe worked 15 hours as a dishwasher and 12 hours as a host.

3. Take the total amount of wages (($13.00×15) + ($12.00×12)) and divide by the total number of hours worked (27)= $339 / 27 = $12.56 blended rate

You now have the employee’s blended rate. Please not this does not include bonuses or payouts. Now that you have a blended rate, you can calculate your employee’s overtime pay.

**Overtime limits**

Overtime in California is calculated on both a day or weekly rate. Limits are as follows:

- Over 8 hours per day
- Over 40 hours per week

Both require the same calculation

**To calculate overtime pay**

- Take the total amount of hours (48) and subtract 40 hours to get the amount of overtime owed = 8 hours weekly overtime
- Determine the blended rate by taking the total amount of wages (($13.00×24) + ($12.00×24)) and divide by the total number of hours worked (48) = ($312 + $288) / 48 = $12.50 blended rate
- Multiply the blended rate from the example above by 1.5 to get the blended overtime rate = $18.75 overtime blended rate
- The total overtime pay owed = ($18.75 x 8 hours) = $150.00 of overtime pay

California has a daily maximum of 8 hours or a weekly maximum of 40 hours before daily or weekly overtime is owed.

**Overtime ****calculation**** Example**

Restaurant A’s workweek is from Monday to Sunday. Joe worked 8 hours daily from Monday to Wednesday as a host with an hourly rate of $12.00 / hour and 8 hours daily from Friday to Sunday as a dishwasher with an hourly rate of $13.00 / hour. He did not work more than 8 hours in 1 workday, therefore he does not have any daily overtime but he has worked in excess of 40 hours during the workweek meaning he has weekly overtime.

*This document is provided by Push Technologies Inc. (“Push Operations”) for information purposes only. This is not an official or legal document and should not be taken as legal advice. Push Operations does not guarantee or warrant the accuracy or completeness of the information provided. For the most accurate and up-to-date information, please check with the proper governing authority.*

Push Operations is Software Crafted for Restaurants.

We provide a powerful integrated solution in managing your workforce. No more fragmented systems. No more confusion. Push solutions are made specifically for the restaurant industry. Every aspect of restaurant workforce management is found in one place.

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Understand how overtime is required to be calculated by California's labor code. You can also download the free overtime rate calculator to make calculations for penalties, that require blended rates, even easier for your hourly employees.