Business Example 4 - Daily Overtime Plus Rule

This example covers these business needs:

  • Employees earn overtime after working 8 hours. Any time worked longer than 10 hours is paid at double-time.
  • Employees earn premiums as bonuses for meeting quotas. These do not count toward employees’ overtime and are paid with the special PRM time code. However, premiums paid as incentive for working undesirable shifts do count toward the duration of an employee’s worked time. These are paid with the WRK time code.
  • Overtime is paid on eligible time worked during unscheduled time, first.

Configuration

Condition: Always True

Rule parameters:

Parameter Value
Hour Set Description REG=480, OT1=120, OT2=9999
Work Detail Hour Types REG, OT1, OT2
Work Detail Time Codes WRK
Premium Hour Types REG
Premium Time Codes WRK
Allocate overtime based on the schedule Selected

Results

4a - Employee earns overtime

In this example result, the employee is scheduled to work from 10:00 to 17:00, with a half hour break at 13:00. The employee comes into work early, at 8:00.

The employee worked 8.5 hours.

The rule assigns 30 minutes of overtime, on a schedule-basis so that eligible work paid at the employee’s regular rate is allocated during the employee’s scheduled time, first. Then, the rule assigns any remaining eligible work paid at the regular rate to the unscheduled time at the start of the day. In this example, the rule pays 1.5 hours of work at the regular rate. Then, the rule assigns the overtime rate to the remaining unscheduled time. The rule changes the hour type of 30 minutes of unscheduled work between 9:30 and 10:00 to OT1.

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

Before overtime:

Hours Time Code Hour Type Rate Paid
8.5 WRK REG Regular rate at $20 an hour $170
.5 BRK REG Regular rate at $20 an hour $10
Total: $180

After overtime:

Hours Time Code Hour Type Rate Paid
8 WRK REG Regular rate at $20 an hour $160
.5 BRK REG Regular rate at $20 $10
.5 WRK OT1 Time and a half overtime rate at $30 an hour $15
Total: $185

4b - Employee earns double-time rate

In this example result, the employee is scheduled to work the night shift over a holiday, from 01:00 to 10:00, with an hour break at 5:00. The employee is paid a 4-hour shift premium for working overnight on the holiday.

The employee works 8 hours of eligible time during the day. Plus, the 4 hours of premium time counts towards overtime, so the employee earns overtime on 12 hours (720 minutes) of work. 2 hours are paid at time and a half and another 2, beyond the 10 hour threshold, are paid at double time.

The rule assigns 4 hours of overtime. The employee only worked during scheduled times, so the last 4 hours are paid at overtime rates.

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

Before overtime:

Hours Time Code Hour Type Rate Paid
8 WRK REG Regular rate at $15 an hour $120
1 BRK REG Regular rate at $15 an hour $15
4 WRK REG Regular premium rate at $15 an hour $60
Total: $195

After overtime:

Hours Time Code Hour Type Rate Paid
4 WRK REG Regular rate at $15 an hour $60
1 BRK REG Regular rate at $15 an hour $15
2 WRK OT1 Time and a half overtime rate at $22.5 an hour $45
2 WRK OT2 Double time overtime rate at $30 an hour $60
4 WRK REG Regular premium rate at $15 an hour $60
Total: $240

4c - Employee does not work any eligible time

In this example result, the employee is on vacation at the end of the year. The employee has met several sales quotas and is paid a yearly bonus.

The employee is paid an 85 hour premium as a yearly bonus, however the premium does not have the WRK time code, and is not considered by the rule. The rule does not assign any overtime.