Code TT for Employees Paid Two Different Rates

When someone works at two rates in one week, the regular rate is the average of all their pay, weighted by hours.

Add up the pay at every rate, divide by total hours to get one regular rate, then take half of it for each hour over 40. For 30 hours at $15 and 15 hours at $20, the regular rate is $16.67 and qualified overtime is $41.67.

Worked example

An employee works 30 hours as a cashier at $15 and 15 hours as a shift lead at $20 in the same workweek (DOL Fact Sheet #56A uses these figures).

StepCalculationAmount
Pay at $1530 hours × $15$450.00
Pay at $2015 hours × $20$300.00
Total pay$450 + $300$750.00
Regular rate$750 ÷ 45 hours$16.67
Overtime hours45 − 405
Qualified overtime (code TT)½ × $16.67 × 5$41.67

Common mistakes

Paying overtime at each job's own rate (the "rate in effect" method) is allowed only with an agreement made in advance and has its own rules. These calculators use the standard weighted-average method.

Check a week in seconds

The free calculator shows every step. For a whole team's W-2 totals, the batch version reads your timesheet export.

Questions

What is the regular rate with two pay rates?

Total pay at all rates (plus non-discretionary bonuses and differentials) divided by total hours worked in the workweek.

Do hours at both jobs count toward 40?

Yes. For the same employer in the same workweek, hours at every rate add together, and overtime is the total over 40.