FLSA 29 CFR § 778.115
Authoritative Statutory Source
Weighted Average Overtime Rate
Overtime calculation method for employees working two distinct pay rates in the same workweek.
Detailed Definition & Statutory Context
Weighted Average Overtime Rate is governed by FLSA 29 CFR § 778.115 standards across corporate payroll administration, statutory tax withholding, and general ledger labor accounting. Rigorous compliance with Weighted Average Overtime Rate prevents IRS Form 941 deposit penalties and FLSA wage-and-hour litigation.
Statutory Formula & Equation
Regular Rate = Total Weekly Earnings at Both Rates ÷ Total Weekly Hours Worked
General Ledger / Payroll Journal Entry Standard
Debit: Gross Payroll Expense / Employer Tax Expense
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Common Operational Pitfalls
- Excluding non-discretionary bonuses from FLSA overtime regular-rate calculations.
- Failing to cap Social Security tax withholding once employee earnings exceed the $168,600 wage base.
- Misclassifying non-exempt hourly employees as exempt salaried workers.