Overtime Rate
Use the Overtime Rate work rules to configure how employees are paid for overtime hours.
The Overtime Rate work rule type includes the following work rules:
- Guaranteed Wage OT Rate
- Job OT Rate
- Home Department OT Rate
- Home Job OT Rate
- FLSA OT Rate
- FLSA Weighted OT Rate
- Weighted OT Rate
- Commissioned Based OT Rate
Guaranteed Wage OT Rate
Description | Overtime pay is based on a guaranteed wage for the workweek.
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Parameters | Parameter | Description |
Overtime Factor | The overtime factor applied to the rate of pay. Overtime Factor = Job Rate + (Job Rate × OT Factor). | |
Premium Types | The premium earning types applied to the rate of pay. For the premium earning types to be used, the earning types must be configured in the Earning Types screen. | |
Weekly Hours | The number of hours that can be worked in a workweek before weekly overtime is applied. For example, if the Weekly Hours field is set to 40, an employee that works more than 40 hours will enter into weekly overtime. |
Job OT Rate
Description | Sets overtime rate according to the job pay rate multiplied by the overtime factor. Job Rate + (Job Rate × OT Factor)
For the premium earning types to be used, the earning types must be configured in the Earning Types screen.
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Parameters | Parameter | Description |
Overtime Factor | The overtime factor to apply against the rate of pay. Overtime Factor = Job Rate + (Job Rate × OT Factor) | |
Premium Types | The premium earning types applied to the rate of pay. For the premium earning types to be used, the earning types must be configured in the Earning Types screen. |
Home Department OT Rate
Description | Sets the overtime rate for the home department according to home job pay rate multiplied by the overtime factor. Jobs outside of the home department will use the the property default rates multiplied by the overtime factor. The overtime rate for the home department is set according to the home job. Home Job Rate + (Home Job Rate × OT Factor) Jobs that are outside of the home department use the default rate that is specific to the property. Job Rate + (Job Rate × OT Factor) If an employee has both a home job and secondary job, the overtime factor is applied to the home job rate of pay. If the employee works a secondary job and earns overtime, the rate is based on the default rate set for that job in the labor structure.
For the premium earning types to be used, the earning types must be configured in the Earning Types screen.
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Parameters | Parameter | Description |
Overtime Factor | The overtime factor that is applied to the rate of pay for the home job. Job Rate + (Job Rate × OT Factor) | |
Premium Types | The premium earning types applied to the rate of pay. Premium earning type to which the rate is applied. To select premium types, click the field and add the earning types using the Select Earning Types dialog box. |
Home Job OT Rate
Description | Sets the overtime rate according to home job pay rate multiplied by the overtime rate factor. Overtime Rate = OT Home Job Rate + (Home Job Rate × OT Factor) If an employee has both a home job and another job, the overtime factor is applied to the home job rate of pay. If the employee works a secondary job and earns overtime, the rate is based on the default rate set in the labor structure for that job.
For the premium earning types to be used, the earning types must be configured in the Earning Types screen.
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Parameters | Parameter | Description |
Overtime Factor | The overtime factor that is applied to the rate of pay. Job Rate + (Job Rate × OT Factor). | |
Premium Types | The premium earning types applied to the rate of pay. Premium earning type to which the rate is applied. To select premium types, click the field and add the earning types using the Select Earning Types dialog box. |
FLSA OT Rate
Description | This rate is calculated by dividing the total compensation (Earnings + Other Compensation) for the workweek by the total number of hours actually worked during that week. The rate is then multiplied by the overtime factor, which is applied to the premium hours. Compensation includes earning types that are included in the average wage calculations. ((Earnings + Other Compensation) ÷ (Worked Hours)) × OT Factor
For the premium earning types to be used, the earning types must be configured in the Earning Types screen.
For more information, see Fair Labor Standards Act (FLSA) - Examples. | |
Parameters | Parameter | Description |
Adjust OT Rate for Shortfall | If there is a shortfall between the regular rate of pay and minimum wage, the calculated overtime rate is adjusted. | |
Calculate Over Pay Period | Calculates the average rate of pay for clients with multiweek pay periods. Compensation includes earning types that are included in the average wage calculations. | |
Min Wage Per Shift | If selected, the rule compares the amount of overtime to the hourly rate of minimum wage. If the overtime rate is lower than minimum wage, the rate is raised to meet the amount of minimum wage. | |
Overtime Factor | The overtime factor that is applied to the rate. Job Rate + (Job Rate × OT Factor) | |
Premium Types | The premium earning types applied to the rate of pay. Premium earning type to which the rate is applied. To select premium types, click the field and add the earning types using the Select Earning Types dialog box. |
FLSA Weighted OT Rate
Description | If an employee works multiple jobs that have different pay rates, the FSLA Weighted OT Rate work rule calculates the average rate.
For the premium earning types to be used, the earning types must be configured in the Earning Types screen.
For more information, see Fair Labor Standards Act (FLSA) - Examples. | |
Parameters | Parameter | Description |
Overtime Factor | The overtime factor that is applied to the rate. Job Rate + (Job Rate × OT Factor) | |
Premium Types | The premium earning types applied to the rate of pay. Premium earning type to which the rate is applied. To select premium types, click the field and add the earning types using the Select Earning Types dialog box. |
Weighted OT Rate
Description | Calculates the weighted rate by dividing total compensation for the workweek by the total number of hours actually worked during that week. The weighted rate is then multiplied by the overtime factor and the number of overtime hours worked. Overtime Dollars = Weighted Rate * OT Factor * OT Hours. The value stored in the OT rate is adjusted to take into account the way the system uses straight time pay to calculate OT dollars.
For the premium earning types to be used, the earning types must be configured in the Earning Types screen.
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Parameters | Parameter | Description |
Min. Wage Before Calc. | If selected, the rule compares the amount of overtime to the hourly rate of minimum wage. If the overtime rate is lower than minimum wage, the rate is raised to meet the minimum wage. | |
Overtime Factor | The overtime factor that is applied to the rate. Job Rate + (Job Rate × OT Factor) | |
Premium Types | The premium earning types applied to the rate of pay. Premium earning type to which the rate is applied. To select premium types, click the field and add the earning types using the Select Earning Types dialog box. |
Commissioned Based OT Rate
Description | In RMS: Rate calculated by dividing total commission for the day by the total number of hours worked in the day. The rate is then multiplied by the overtime factor. Calculates the rate by dividing total commission for the workweek by the total number of hours worked in the workweek. The rate is then multiplied by the overtime factor. (Commissions ÷ Worked Hours) × OT Factor
For the premium earning types to be used, the earning types must be configured in the Earning Types screen.
For more information, see Commission-based Premiums. | |
Parameters | Parameter | Description |
Earning Types | Earning type to which the overtime rate is applied. The earning types can be selected on the Earning Types screen. | |
Minimum Commission Rate | Minimum commission rate before the overtime rate factor is applied. | |
Overtime Factor | The overtime factor that is applied to the rate. (Commissions ÷ Worked Hours) × OT Factor | |
Premium Types | The premium earning types applied to the rate of pay. Premium earning type to which the rate is applied. To select premium types, click the field and add the earning types using the Select Earning Types dialog box. |