A method of controlling output torque in a hybrid or electric vehicle transmissions includes calculating a first long-term output torque constraint and a first short-term output torque constraint. A first effective output torque constraint is determined from at least one of the first long-term and short-term output torque constraints. The first effective output torque constraint is bounded by both of the first long-term and short-term output torque constraints. The method may further include calculating a rate limit, such that determining the first effective output torque constraint includes restricting the magnitude of changes in the first long-term output torque constraint to the calculated rate limit. A spread between the first short-term output torque constraint and the first effective output torque constraint may be measured, and the rate limit calculated as a function of that spread. The rate limit may also be calculated with an inversely-proportional relationship to the spread.