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 

Description

Overtime pay is based on a guaranteed wage for the workweek.

  • For semimonthly and monthly pay periods, the overtime rates might be different for different days within the same workweek.
  • For the premium earning types to be used, the earning types must be configured in the Earning Types screen.

ParametersParameterDescription
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.

ParametersParameterDescription
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.

ParametersParameterDescription
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.

Note: Premium earning types are configured in the Earning Types screen.

To select premium types, click the field and add the earning types using the Select Earning Types dialog box.

 Click here for more information...

  1. Click the Premium Types field.
  2. Click the Options button (  ).
    The Select Earning Types dialog box appears.
  3. Add the earning types you want to include:
    • To add all available types, click the Add All button (  ).
    • To add a single earning type, in the Available section, click the earning type name and then click the Move Selected Right button (  ).
    • If you need to move selected items back to the Available section, click the items in the Selected section and use the the Move All Left (  ) or Move Selected Left (  ) buttons.
  4. Click OK.
    The dialog box closes.

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.

ParametersParameterDescription
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.

Note: Premium earning types are configured in the Earning Types screen.

To select premium types, click the field and add the earning types using the Select Earning Types dialog box.

 Click here for more information...

  1. Click the Premium Types field.
  2. Click the Options button (  ).
    The Select Earning Types dialog box appears.
  3. Add the earning types you want to include:
    • To add all available types, click the Add All button (  ).
    • To add a single earning type, in the Available section, click the earning type name and then click the Move Selected Right button (  ).
    • If you need to move selected items back to the Available section, click the items in the Selected section and use the the Move All Left (  ) or Move Selected Left (  ) buttons.
  4. Click OK.
    The dialog box closes.


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.

ParametersParameterDescription
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.

Note: Premium earning types are configured in the Earning Types screen.

To select premium types, click the field and add the earning types using the Select Earning Types dialog box.

 Click here for more information...

  1. Click the Premium Types field.
  2. Click the Options button (  ).
    The Select Earning Types dialog box appears.
  3. Add the earning types you want to include:
    • To add all available types, click the Add All button (  ).
    • To add a single earning type, in the Available section, click the earning type name and then click the Move Selected Right button (  ).
    • If you need to move selected items back to the Available section, click the items in the Selected section and use the the Move All Left (  ) or Move Selected Left (  ) buttons.
  4. Click OK.
    The dialog box closes.


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.

ParametersParameterDescription
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.

Note: Premium earning types are configured in the Earning Types screen.

To select premium types, click the field and add the earning types using the Select Earning Types dialog box.

 Click here for more information...

  1. Click the Premium Types field.
  2. Click the Options button (  ).
    The Select Earning Types dialog box appears.
  3. Add the earning types you want to include:
    • To add all available types, click the Add All button (  ).
    • To add a single earning type, in the Available section, click the earning type name and then click the Move Selected Right button (  ).
    • If you need to move selected items back to the Available section, click the items in the Selected section and use the the Move All Left (  ) or Move Selected Left (  ) buttons.
  4. Click OK.
    The dialog box closes.

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.

ParametersParameterDescription
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.

Note: Premium earning types are configured in the Earning Types screen.

To select premium types, click the field and add the earning types using the Select Earning Types dialog box.

 Click here for more information...

  1. Click the Premium Types field.
  2. Click the Options button (  ).
    The Select Earning Types dialog box appears.
  3. Add the earning types you want to include:
    • To add all available types, click the Add All button (  ).
    • To add a single earning type, in the Available section, click the earning type name and then click the Move Selected Right button (  ).
    • If you need to move selected items back to the Available section, click the items in the Selected section and use the the Move All Left (  ) or Move Selected Left (  ) buttons.
  4. Click OK.
    The dialog box closes.


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.

ParametersParameter 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.

Note: Premium earning types are configured in the Earning Types screen.

To select premium types, click the field and add the earning types using the Select Earning Types dialog box.

 Click here for more information...

  1. Click the Premium Types field.
  2. Click the Options button (  ).
    The Select Earning Types dialog box appears.
  3. Add the earning types you want to include:
    • To add all available types, click the Add All button (  ).
    • To add a single earning type, in the Available section, click the earning type name and then click the Move Selected Right button (  ).
    • If you need to move selected items back to the Available section, click the items in the Selected section and use the the Move All Left (  ) or Move Selected Left (  ) buttons.
  4. Click OK.
    The dialog box closes.