Tie-out tool / Two pay rates
Code TT with two pay rates in one workweek
Use the weighted average of the two rates as the regular rate. 30 hours at $18 and 16 hours at $24 is $924 for 46 hours: a regular rate of $20.0870, and $60.26 of Code TT for the 6 hours over 40.
Steps
- Add the straight-time earnings at both rates for the workweek.
- Divide by all hours worked that week. That is the regular rate.
- Multiply the hours worked over 40 by one-half of the regular rate.
The regulation: where an employee works in one workweek at two or more kinds of work with different rates, "his regular rate for that week is the weighted average of such rates." (29 CFR 778.115) The IRS formula then uses that regular rate. (IRS FS-2026-13, Q12 and Q15)
Worked examples
| Hours and rates | Code TT | Regular rate | Hours over 40 | Straight-time earnings | Hours |
|---|---|---|---|---|---|
| 30 h at $18 + 16 h at $24 | $60.26 | $20.0870 | 6 | $924.00 | 46 |
| 40 h at $15 + 10 h at $22 | $82.00 | $16.4000 | 10 | $820.00 | 50 |
| 25 h at $20 + 25 h at $30 | $125.00 | $25.0000 | 10 | $1,250.00 | 50 |
| 44 h at $16 + 4 h at $28 | $68.00 | $17.0000 | 8 | $816.00 | 48 |
| 20 h at $25 + 30 h at $25 | $125.00 | $25.0000 | 10 | $1,250.00 | 50 |
Where the register differs
- Overtime paid at 1.5 times the rate of the job being done during the overtime hours. Federal rules allow this by agreement, and it gives a different premium from the weighted average. The premium actually paid under a permitted method is what counts. (FS-2026-13, Q17)
- Overtime paid at 1.5 times the lower rate only. If that is less than the weighted-average premium, pay is short.
- A shift differential treated as a separate line and left out of the regular rate.
The tie-out tool stops on an employee with two rates in one workweek and says so, because the file alone cannot show which method the employer agreed to use. This page is the hand method for those employees.
Do the whole year from a file
Drop a timesheet CSV, paste the register overtime totals, and get a worksheet per employee with the reason for every difference.
Open the tie-out toolRuns in your browser. Payroll data is never uploaded.
Questions
Is the regular rate the higher rate, the lower rate or the average?
The weighted average: total straight-time earnings for the workweek divided by total hours worked, under 29 CFR 778.115.
Do two rates in different weeks need a weighted average?
No. The average is only for two rates inside one workweek. A raise that starts in a new week simply uses the new rate from that week.
Sources
- 29 CFR 778.115, employees working at two or more rates
- IRS Fact Sheet FS-2026-13, qualified overtime questions and answers (August 2026)
- 29 CFR 778.110, hourly rate employee
Fetched 2026-11-10. Regulation text was checked against the federal annual edition; links open the current online version.
Updated 2026-11-10. Tickfoot is an information tool, not tax, legal or professional advice.