Business Example 6 - Weekly Overtime Plus Rule
This example covers these business needs:
- Employees are paid overtime premiums, at time and a half, for any eligible time they work beyond 40 hours a week.
- Any eligible work that earns employees overtime premiums is only paid as an overtime premium.
- Overtime premiums are charged against the same jobs and departments as the work that earned the premium. If employees work in multiple jobs or departments, the premiums are paid proportionally against the different jobs or departments.
Configuration
Condition: Always True
Rule parameters:
| Parameter | Value |
|---|---|
| Hour Set Description | REG=2400, OT1=9999 |
| Work Detail Hour Types | REG, R1, OT1 |
| Work Detail Time Codes | WRK |
| Premium Hour Type | Assign hour type according to the Hour Set Description |
| Hour type marker for work details with overtime | R1 |
| Premium Time Code | Assign time code (PRM) |
| Premium Job | Allocate proportionally by job |
| Premium Department | Allocate proportionally by department |
The R1 hour type has a Multiple value of 0, set on the related configuration page.
See Payroll settings.
Results
In this example result, the employee works these shifts during the week:
- 35 hours in the INSIDESALES department, working the SUPERVISOR job.
- 5 hours in the SALESSPT department, working the SUPERVISOR job.
- 1 hour in the INSIDESALES department, working the MEETING job.
- 2 hours in the SALESSPT department, working the MEETING job.
The employee has worked 43 hours of eligible time, earning 3 hours of overtime premiums.
The rule pays 3 hours in premiums at the OT1 rate. To pay this time proportionally against both jobs and departments, the rule creates 4 different premiums, one for each set of labor metrics.
The calculations to determine the length of the premiums are the same, regardless of the number of different sets of labor metrics. The rule:
- Calculates the percentage of eligible time the employee recorded against each set of labor metrics. So, 35 hours of 43 total eligible time was recorded against the SUPERVISOR job and INSIDESALES department, roughly 81%.
- Calculates the amount of overtime the employee earned (3 hours at OT1)
- Multiplies the amount of overtime against the percentage of each set of labor metrics. So, 81% of the 3 hours at OT1 is a 147 minute (2 hour and 27 minutes) premium with the OT1 rate, paid against the SUPERVISOR job and INSIDESSALES department.
The result of these calculations is 4 premiums, paid proportionally against the labor metrics of the time that earned them. The rule also changes the hour type of the work details that earned the premiums to R1.