Business Example 2 - Daily Overtime Plus Rule

This example covers these business needs:

  • Employees are paid premiums at time and half their normal rate for every hour they work beyond 8 hours a day.
  • Overtime premiums are charged against the employees' default jobs and projects, but also charged to the OVERTIME department, regardless of the department in which the employee worked.
  • Any eligible work that earned employees overtime premiums must be marked on the timesheet, for reporting purposes. Also, employees are not paid for this time; the time is only paid as an overtime premium.
  • When employees work multiple shifts on the same day, each shift is considered a separate day, for overtime purposes, if more than 4 hours separates the shifts.

Configuration

Condition: Always True

Rule parameters:

Parameter Value
Hour Set Description REG=480, OT1=9999
Work Detail Hour Types REG, R1
Work Detail Time Codes WRK
Overtime Reset Description GAP=240
Apply overtime as a premium Selected
Premium Hour Type Assign hour type according to the Hour Set Description
Premium Time Code Assign time code (PRM)
Hour type marker for work details with overtime R1
Premium Job Assign job (blank)
Premium Department Assign department (OVERTIME)
Premium Project Assign project (blank)
Populate Premium Time Fields Selected

Additional configuration:

The R1 hour type has a Multiple value of 0, set on the related configuration page.

See Payroll settings.

Results

2a - Employee earns overtime

In this example result, the employee works 10:00 to 19:00 without taking a break. The employee's default labor allocation charges the work against the SALES department, INSIDE SALES job and the AMERICAS project.

The employee worked 9 hours (540 minutes) of eligible time, 1 hour of which is beyond the regular rate threshold, earning the employee overtime. The rule pays the employee a 1-hour overtime premium. Since the rule is configured to use the default labor allocations, the premium is charged against the INSIDE SALES job and the AMERICAS project. However, the Premium Department parameter overrides the employee's department and charges the premium against the OVERTIME department.

The rule also changes the hour type of the eligible work that earned the premium to the unpaid R1 hour type, so that the employee is not paid double time and a half for that hour.

These tables summarize the employee's pay before and after the overtime is paid.

Before overtime:

Hours Time Code Hour Type Rate Paid
9 WRK REG Regular rate at $20 an hour $180
Total: $180

After overtime:

Hours Time Code Hour Type Rate Paid
8 WRK REG Regular rate at $20 an hour $160
1 WRK R1 Unpaid $0
1 PRM OT1 Premium time and a half overtime rate at $30 an hour $30
Total: $190

2b - Employee's worked time is reset

In this example result, the employee is scheduled to the morning shift, and agrees to cover an evening shift as well. The employee works from 7:00 to 14:00 and 19:00 to midnight.

Over the course of the day, the employee worked 12 hours (720 minutes), which is enough to earn 5 hours of overtime. However, since the Overtime Reset Description parameter was configured with GAP=240, and the employee recorded a gap between shifts of 5 hours (300 minutes), the rule resets the count of eligible work at 14:00. Since the employee only worked 7 hours before the reset, and 5 hours after, the rule does not pay any overtime.