What is weighted overtime?

Weighted overtime is a concept used in many industries, particularly in healthcare and manufacturing, to incentivize employees to work longer hours or less desirable shifts. This form of overtime pay is typically calculated by multiplying the employee's regular hourly rate by a certain factor, usually 1.5 or 2, depending on the specific agreement or company policy.

For example, if an employee's regular hourly rate is $20 per hour, and they work overtime at a weighted rate of 1.5, they would earn $30 per hour for each hour worked beyond their regular schedule.

Weighted overtime is often used to encourage employees to work outside of their normal hours, such as nights, weekends, or holidays, and can help employers manage scheduling challenges by offering a financial incentive for employees to take on these shifts.

It's important for both employers and employees to understand the specific policies and calculations for weighted overtime pay to ensure fair compensation for extra hours worked.