Under the Fair Labor Standards Act (FLSA), when an employee works more than one pay rate during a workweek, overtime must be calculated using a blended (weighted-average) regular rate. The Inn-Flow Calculation Engine performs this automatically at the FEIN payroll-group level, combining all hours worked across positions and across hotels that share the same FEIN. This applies to any employee who works more than one pay rate, position, or hotel within the same payroll group during a workweek.

When an employee works two or more distinct rates in a single workweek, the blended regular rate is calculated as Total Straight-Time Earnings divided by Total Hours Worked. It is rounded to 2 decimals using banker's rounding and is recomputed whenever historical entries change (unless payroll has already been processed). The overtime rate is the blended regular rate times 1.5.

Most hotels follow the FLSA default of 40 hours per workweek, but the threshold honors the entity-defined workweek start. If an employee crosses the threshold mid-shift, hours up to the threshold are paid as straight time and hours beyond it in that same shift are paid as overtime at the blended OT rate. Once the rate is computed, it applies to all subsequent overtime hours for that workweek unless earlier records are edited, in which case the week is recalculated (subject to payroll lock).

The blended rate calculation includes all hours and earnings across all positions and across all hotels with the same FEIN. It does not combine hotels with different FEINs. Regular hours accumulate until the threshold is reached, overtime hours are stored in their own OT rows by position, and Paid-Per-Room (PPR) hours – hours credited for rooms cleaned – do not count toward overtime eligibility.

If an employee belongs to multiple properties or positions, Inn-Flow determines their standard weekly hour requirement using the primary position if one exists, or the oldest active entity-wide setting if no primary is defined. This keeps thresholding consistent for employees shared across locations.

Example A -- Multi-rate blended overtime. The employee works 20 hours at $12/hr and 25 hours at $15/hr. Straight-time earnings are $240 + $375 = $615 across 45 total hours. The blended regular rate is $615 / 45 = $13.67, and the OT rate is $13.67 x 1.5 = $20.51. The first 40 hours are paid at straight time per position, and the remaining 5 overtime hours are paid at $20.51.

Example B -- Mid-shift threshold. The employee already has 37.0 hours and works an 8-hour shift. The first 3.0 hours are straight time, and the remaining 5.0 hours are overtime at the blended OT rate.

The engine computes blended overtime in two layers. In the regular layer, each day's hours go into daily regular rows by position, PPR rows do not count toward overtime, and thresholding occurs at the FEIN group level. In the overtime layer, any hours above the threshold are placed into OT rows under the position worked, the OT rate is locked when the threshold is crossed, and if prior entries change the engine recalculates the entire affected week unless it is locked.

PPR rows are inserted or updated based on rooms cleaned per service level, but PPR hours never count toward overtime qualification.

All blended OT logic honors the local time zone of the hotel and the entity-configured workweek start (for example, Monday 12:00 AM). Daily and weekly boundaries are computed using these exact configurations.

State-specific rules such as California daily overtime, Colorado daily overtime, and double-time rules are also part of the Inn-Flow Labor and Payroll products.