When working on federal land/jobs, we are required to calculate blended rates.
Will SAGE be addressing this issue soon so that it can be paid and reported on CP reports correctly?

https://www.energy.gov/sites/prod/files/2014/10/f18/DBA%20FAQs%20for%20Posting.pdf

A: Where employees work more than 40 hours on DBA covered contracts during
a period of seven consecutive days (workweek), pursuant to the Contract Work
Revised 10/1/2014 Page 16
Davis Bacon Frequently Asked Questions (FAQs)
Hours and Safety Standards Act (CWHSSA), contractors and subcontractors are
required to pay these employees one and one-half times their basic rates of pay
for all hours over 40 worked on covered contract work in a workweek.
If
employees work more than 40 hours in a workweek that includes both DBA and
non-DBA work, and the DBA work does not exceed 40 hour, the CWHSSA is not
applicable. However, these contractors and subcontractors are probably subject
to the Fair Labor Standards Act (FLSA), which requires employees receive one
and one-half times their basic rates of pay for all hours over 40 worked in a
workweek, regardless of whether it is DBA-covered work.

When an employee works at two or more different rates in an overtime workweek, the WEIGHTED
AVERAGE is to be used for calculating the employee’s regular rate. Additional
information may be found in DOL Regulations 29 CFR § 778.115, stating the
weighted average method is the method to be used when an employee works
both DBA covered and non-covered hours. The following is an example of how to
calculate overtime using the weighted average method. Using this methodology,
the number of hours worked at each rate is multiplied by the rate of pay and the
total is divided by the total hours worked in the week, including those over 40.
Example:
• DBA-covered WAP work = 40 hours @ $20.00/hour = $800.00
• Non-DBA covered work = 7 hours @ $10.00 = $70.00
• $800.00 + $70.00 = $870.00/47 hours for the week = $18.51 blended rate
• $18.51/2 = $9.26 (half time due for each overtime hour)
• $9.26 X 7 overtime hours = $64.82 (overtime premium due)
• $870.00 + $64.82 = $934.82 (total compensation due)
Where DBA-covered work and non-DBA covered work are performed in a
workweek the employer may pay the rate in effect when the worker exceeds a
total of 40 hours in the work week, provided specific rules in 29 CFR 778.419 are
followed. These rules include: (1) notify workers of the regular non-DBA work
wage at the beginning of the work week, and (2) segregate the hours to show
when the DBA and non-DBA hours were performed. The contractor must be able
to provide detailed documentation showing when the hours were worked to
explain why the employee was not paid either the blended rate or the DBA rate
on the hours worked over 40 in a work week. Using the example above, the
employer may pay 7 hours of overtime at the rate of $15.00 per hour (time and
one-half the $10.00 pay rate), if the employer keeps detailed records showing
that the 7 overtime hours were worked on non-DBA covered work. Travel would
be non-DBA covered work.

by: Charlene D. | over a year ago | Payroll