Davis-Bacon Weighted-Average Overtime, Worked Example

Published October 5, 2026

A worker who spends part of the week in one classification and part in another has two straight-time rates. When the week goes over 40 hours, which rate does overtime use? The Department of Labor allows two methods, and without an agreement made in advance it is the weighted average.

The rule

Overtime on covered contracts comes from the Contract Work Hours and Safety Standards Act: at least 1.5 times the basic rate of pay for every hour over 40 in the workweek. (Source: 40 U.S.C. 3702, Contract Work Hours and Safety Standards Act overtime, (a).) When a worker has more than one rate in the week, DOL's guidance says the overtime pay may be computed on the weighted average rate, the total straight-time pay for the week divided by the total hours worked. (Source: DOL Prevailing Wage Resource Book: Overtime Pay on Government Contracts.) That is the same regular-rate method in the Fair Labor Standards Act regulations. (Source: 29 CFR 778.115, regular rate when two or more rates are paid.)

Regular rate = total straight-time pay at all rates ÷ total hours worked
Overtime premium = regular rate × 0.5 × overtime hours

The straight-time pay already pays every hour once, overtime hours included, so the overtime adds the half-time premium on top.

Worked example

One week: 26 hours as a carpenter at $40.00 and 20 hours as a laborer at $28.00. That is 46 hours, so 6 are overtime.

Carry the regular rate at full precision and round the result to the cent: $34.78 × 0.5 × 6 would give $104.34.

The other method: agreed in advance

DOL's guidance also allows the worker and employer to agree, in advance of doing the work, that overtime hours are paid at not less than 1.5 times the rate for the type of work performed during those overtime hours. (Source: DOL Prevailing Wage Resource Book: Overtime Pay on Government Contracts.) In the example, if the 6 overtime hours were carpenter work, the premium is 6 × $40.00 × 0.5 = $120.00. If they were laborer work, it is 6 × $28.00 × 0.5 = $84.00. Without an agreement made before the work, the regular rate is the weighted average. (Source: 29 CFR 778.115, regular rate when two or more rates are paid.)

Fringe stays out of the multiplier

Fringe benefits paid to bona fide plans, and cash paid to meet the fringe part of the prevailing wage, are excluded when computing overtime under the Act. (Source: DOL Prevailing Wage Resource Book: Overtime Pay on Government Contracts.) The regulation allows the exclusion as long as it does not bring the rate below the basic hourly rate on the wage determination. (Source: 29 CFR 5.32, overtime payments.) Fringe is still owed for every hour worked, at the straight amount. If the carpenter fringe is $15.00 and the laborer fringe $10.00:

So do not add fringe to the hourly rate and then multiply the total by 1.5 for overtime hours. Figure overtime on the basic rate, and add fringe for every hour at the straight amount.