How do I calculate the hourly rate to be paid for employees who earn multiple hourly rates?

If an employee makes multiple hourly rates, the employer may choose between two methods to compensate them. An employer may pay the employee the wage they would have been paid for the exact hours they would have worked, or pay the weighted average of all hourly rates paid in the last pay cycle. For example, if an employee worked 35 hours at an hourly rate of $20.00 per hour and 5 hours at $25.00 per hour, the weighted average is $20.63.