Calculating FLSA overtime (U.S. and CA)

Run FLSA Overtime Calculation (PR132) to calculate the weighted average rate for the required overtime premium amount due, based on the overtime pay plan assigned to the employee. Use this form if you gave a retroactive pay increase to non-exempt employees on Retroactive Pay Calculation (PR131).

The method for calculating overtime depends on how the overtime plan is set up and whether or not the user supplies overtime pay codes.

If the manually entered overtime on the time record is less than the overtime amount due, then the application adjusts the premium on the supplied overtime paycode. If additional overtime hours are due, then the application creates an FLSA overtime paycode using the weighted average rate.

Note: If you defined the overtime calculation as a required report in the payroll cycle for the company or process level, then this procedure is required.

Before calculating overtime, you must verify that the employee is nonexempt and has a valid overtime pay plan assigned on the Pay tab on Employee (HR11.1).

See Assigning employee pay.

The FLSA Overtime Calculation (PR132) can be required as part of the Payroll Cycle if PR132 is flagged as required on the Company (HR00.1) or Process Level (HR01.1) forms.

Access FLSA Overtime Calculation (PR132) .
Run the report by Processing Group or Process Level by completing the appropriate field.
Select the report options. Use these guidelines to specify the field values:
Update Option

Select whether or not to update the application with changes when the report is run.

Select Report Only to produce an edit report without creating overtime records.

Select Update to create overtime records in addition to the edit report.

Distribution Option
If you create overtime time records through PR132, then select C (Current) or P (Prorate to Timerecords) to indicate whether you want the overtime wages distributed to the home (Current) distribution account or prorated to the distribution on the time records.

The valid options are Current; Default, Current; Home, and Prorate to Time Records. If you leave this field blank, then Current; Default is set as default. If you leave this field blank, then Current is set as default.
- Current; Default: the system uses the home (current) distribution account for the current pay period’s overtime adjustment and for any additional hours that are paid from previous pay periods. However, if processing a previous pay period and PR132 calculates an adjustment for a history overtime time record, then it will use the distribution account from history.
- Current; Home: the system uses the home (current) distribution account for all created overtime time records. Any historical overtime time record distribution accounts are ignored.
- Prorate to Time records: the system calculates the percentage of time spent in each reporting area. (A reporting area is a general ledger account and activity.) Only time records used in the calculation of hours are used.
If you choose to rerun the PR132, then you must first delete any created overtime record entries using Time Record Entry (PR36.1), and then rerun PR132.
Distribution Report

Select whether or not to create a General Ledger distribution report.

If you leave this field blank, then No is set as default and a report is not created.
Run the report.

FLSA Overtime Calculation (PR132) cannot correctly calculate overtime on payroll history converted through Payroll History Load CSV (PR560) because the overtime premium field is not available in the conversion work file on PR560.

Access Payroll Cycle Status (PR00.1) to see if PR132 calculated properly.


If the status marker under Ovt Calc is	It indicates that PR132
an asterisk (*)	ran properly
R	is still running
E	ended in error
(blank)	has not been run

If FLSA Overtime Calculation (PR132) ended with errors, or if time records are deleted, added or otherwise changed after running PR132, then you must rerun the PR132 before continuing the payroll cycle.

See What Causes Errors in the Payroll Cycle?.