Business Example 3 - Daily Overtime Plus Rule

This example covers these business needs:

  • Employees are paid at time and half their normal rate whenever they work more than 10% longer than their regular day. Employees work part-time, in shifts. Their regular work days are anywhere from 4 to 7.5 hours in length. The employee’s regular work day duration is defined for each employee in the application. By default, employees earn overtime after 8 hours. The overtime rate is paid on the time which earned employees the overtime.
  • Unpaid time spent in training counts toward the duration of an employee’s worked time, but employees do not earn overtime on the training time.

Configuration

Condition: Always True

Rule parameters:

Parameter Value
Hour Set Description REG=EMP_VAL1(1.1)|540, OT1=9999
Work Detail Time Codes WRK, TRN
Work Detail Hour Types REG
Protected Work Detail Hour Types REG
Protected Work Detail Time Codes TRN

Additional configuration:

On each employee’s configuration page (Maintenance > Employees > Employee > Details), the Val 1 field contains the duration of a regular work day, specific to that employee, in minutes. The duration can be anywhere from 240 to 450.

Results

3a - Employee earns overtime

In this example result, the employee's regular work day is 5 hours and earns overtime after 5.5 hours. The Val 1 field contains 300. The employee works an extra half hour on Tuesday and stays for another hour of unpaid training.

The employee worked 5 hours of eligible time, and spent an additional 1 hour in training, which counts toward the employee's work day. The employee's work day is 6 hours (360 minutes). The rule multiplies the 300 in the Val 1 field by 1.1, which equals 330, and determines the employee earned 30 minutes of overtime.

Since the Allocate overtime based on the schedule check box is cleared, the rule applies the overtime rate to the work which earned overtime. The last 60 minutes the employee worked earned overtime, however the overtime was unpaid time, spent in training. Since unpaid training is configured as protected time, the rule does not pay the overtime on the training time. Rather, the rule assigns the overtime rate to the last 30 minutes the employee spent working.

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

Before overtime:

Hours Time Code Hour Type Rate Paid
5 WRK REG Regular rate at $8 an hour $40
1 TRN REG Regular rate at $8 an hour $8
Total: $48

After overtime:

Hours Time Code Hour Type Rate Paid
4.5 WRK REG Regular rate at $8 an hour $36
1 TRN REG Regular rate at $8 an hour $8
.5 WRK OT1 Time and a half overtime rate at $12 an hour $6
Total: $50

3b - Employee does not have a regular work day defined

In this example result, the employee has not been configured with a defined regular work day. The Val 1 field on the employee's configuration page is blank, so the rule assumes the employee earns overtime after 9 hours. The employee works a 5 hour shift, from 12:00 to 17:00, and stays an hour late for unpaid training.

The employee worked 5 hours of eligible time, and spent an additional hour in training, which counts toward the employee's work day. Since the employee's worked time is 6 hours, less than the 9 hours the employee must work to earn overtime, the rule does not assign any overtime to the employee.