averaging agreement

In an averaging agreement, you agree to get overtime on the average number of overtime hours you work over 2 weeks or more, not the actual number of hours.

In most jobs, the hours you work over 44 hours a week are overtime hours. And for those hours you get paid 1 ½ times your regular wage.

To average your overtime hours over a certain number of weeks, take the total number of hours you worked in that period and divide by the number of weeks in that period.

Then subtract 44 hours from the total and multiply by the number of weeks in the period to figure out the overtime hours you’ll have.

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