Business Example 7 - Guarantees Plus Rule
This example covers the business needs where employees are guaranteed a base rate and a minimum number of hours per day. For example, a base rate of $10.00 and a minimum of 180 minutes per day.
Configuration
Condition: Always True
Rule parameters:
| Parameter | Value |
|---|---|
| *Time Codes | WRK |
| *Guarantee Period | option selected |
| Guarantee Type |
Money option
selected
Rate to Use: Explicit option selected with 10.00 specified in the field |
| *Use Guaranteed Minutes from | Constant Duration option selected with 180 specified in the field |
| *Premium Time Code | Assign time code option selected with GUAR selected from the lookup |
| Premium Hour Type | Assign hour type option selected with REG selected from the lookup |
| Premium Rate | Money Owed option selected |
Results
These examples assume that all employees are guaranteed a base rate of $10.00 per hour.
7a - Employee works less than the minimum duration at the base rate
In this example, the employee works less than the minimum duration, all at the base rate.
| Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
|---|---|---|---|---|
| 180 | 120 | $10.00 | $20.00 | $10.00 |
The employee worked 120 minutes, but is guaranteed 180 minutes. Since the employee worked at the base rate and earned $20.00, a $10.00 premium is paid to cover the difference.
7b - Employee works the minimum duration at the base rate
In this example, the employee works the specified minimum duration, all at the base rate.
| Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
|---|---|---|---|---|
| 180 | 180 | $10.00 | $30.00 | $0.00 |
The employee worked 180 minutes, which is the amount that is guaranteed. Since the employee worked at the base rate and earned $30.00, no premium is paid.
7c - Employee works the minimum duration at a lower rate
In this example, the employee works the specified minimum duration, but at a lower rate than the base rate.
| Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
|---|---|---|---|---|
| 180 | 180 | $9.00 | $27.00 | $3.00 |
The employee worked 180 minutes, which is the amount that is guaranteed. Since the employee worked at a lower rate than the base rate and earned $27.00, a $3.00 premium is paid is cover the difference.
7d - Employee works less than the minimum duration, but makes more money
In this example, the employee works less than the minimum duration, but makes more money than is guaranteed.
| Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
|---|---|---|---|---|
| 180 | 150 | $15.00 | $37.50 | $0.00 |
The employee worked 150 minutes, but is guaranteed 180 minutes. But since the employee earned more money ($37.50) than is guaranteed, no premium is paid.
7e - Employee works more than the minimum duration, but makes less money
In this example, the employee works more than the minimum duration, but makes less money than is guaranteed.
| Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
|---|---|---|---|---|
| 180 | 210 | $7.25 | $25.38 | $4.63 |
The employee worked 210 minutes, which is more than the guaranteed 180 minutes. But since the employee earned less money ($25.38) than is guaranteed, a $4.63 premium is paid to cover the difference.