The average rate of pay is used to compute overtime.
Example: If an employee worked 16 hours at $7.00 per hour and 30 hours at $8.00 per hour the total straight time amount earned is $352.00. That amount is divided by total hours worked (46) and the average hourly rate is $7.65. Since the employer has already paid the straight time rates for all hours worked, only an additional 1/2 times the average hourly rate is due for the overtime hours (1/2 x $7.65 x 6 hours = $22.95 overtime).
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