FLSA Rule
Class Name
com.workbrain.app.ta.quickrules.FLSAWeeklyOTRule
Overview
The FLSA Rule is used when clients must conform to the Fair Labor Standards Act (FLSA) labor law. FLSA states that employees are due overtime at 1.5 times their "regular rate of pay" for time worked over 40 hours in a work week. An employee's "regular rate of pay" is defined as an employee's total earnings for the week divided by the number of hours worked during that same week.
The US government defines regular rate of pay (RROP) as follows:
"Generally, the regular rate includes all payments made by the employer to or on behalf of the employee (except certain statutory exclusions). The regular rate is determined by adding together the employee's pay for the workweek and all other earnings and dividing the total by the number of hours the employee worked in that week."
Source: http://www.dol.gov/elaws/esa/flsa/otcalc/glossary.asp?p=Regular%20Rate
From a WFM perspective, when they say an "employee's pay for the workweek", they are referring to that employee's straight time earnings plus any premiums that may have been paid out. Some implementations, though, may also have overtime rules that are already applied to work details by the time the FLSA Rule is run. For this reason, the WFM rule can also reverse-engineer the straight time value of those overtime records to be able to calculate that employee's straight time earnings. The purpose of the Overtime Earned Time Codes and the Overtime Earned Hour Types parameters are to define which details are eligible to be used in calculating the straight time earning equivalent (for full details, see the "Parameters" section).
For example, an employee has a work detail of 60 minutes in duration, paid at $15.00 with an hour type of OT1. The multiplier of this hour type is 1.5. The straight time earnings equivalent of this work detail then is the rate divided by the multiplier: $15.00 / 1.5 = $10.00.
Parameters
Parameters marked with an asterisk (*) are required.
| Parameter | Description | Example |
|---|---|---|
| *Must Worked Minutes | The length of the defined workweek in minutes. In the
vast majority of cases, this will be 2400 minutes (40 hours), but it's possible
for an agreed upon workweek to be less than that (for example, 35 hours).
For a daily FLSA, this would mostly be set to 480 minutes (8 hours). |
2400 |
| *FLSA Hours Time Codes | Straight-time details that should count toward the hours and earnings that are used when calculating the employee's RROP for the week. | WRK,TRN |
| FLSA Hours Hour Types | Details that should count toward the hours and earnings that are used when calculating the employee's RROP for the week. | REG |
| *FLSA Dollars Time Codes | Details that should count toward the earnings that are used when calculating the employee's RROP for the week, but not the hours (for example, shift premiums). | SHIFTDIFF |
| FLSA Dollars Hour Types | Details that should count toward the earnings that are used when calculating the employee's RROP for the week, but not the hours (for example, shift premiums). | REG |
| Overtime Earned Time Codes | Details that should count toward the hours and earnings that are used when calculating the employee's RROP for the week, but need to be counted at their straight-time value. These will apply when a weekly overtime rule has already been applied before this rule is run. | WRK,TRN |
| Overtime Earned Hour Types | Details that should count toward the hours and earnings that are used when calculating the employee's RROP for the week, but need to be counted at their straight-time value. | OT1,OT2 |
| *Premium Time Code | The time code of the premium to be inserted if an FLSA top-up premium is required. | FLSA |
| Premium Hour Type | The hour type of the premium to be inserted if an FLSA top-up premium is required. | REG |
| *Details Calculated | This parameter should be set to All since premiums almost always "count" in the regular rate of pay calculation. | All |
| *Calculation Period | Indicates whether the rule is applied daily or weekly.
The default is Weekly.
For details on the weekly calculation, see the Day Week Starts parameter. |
Weekly |
| *Day Week Starts | Applies only when Weekly is selected as the calculation
period.
This parameter indicates the day on which the weekly FLSA calculation period starts. You can select Application Default to use the value of the DAY_WEEK_STARTS registry parameter, or select one of the days of the week. |
Sunday |
Example
This table shows the parameter settings:
| Parameter | Value |
|---|---|
| *Must Worked Minutes | 2400 |
| *FLSA Hours Time Codes | WRK,TRN |
| FLSA Hours Hour Types | REG |
| *FLSA Dollars Time Codes | SHIFTDIFF |
| FLSA Dollars Hour Types | REG |
| Overtime Earned Time Codes | WRK,TRN |
| Overtime Earned Hour Types | OT1 |
| *Premium Time Code | FLSA |
| Premium Hour Type | REG |
| *Details Calculated | All |
| *Calculation Period | Weekly |
| *Day Week Starts | Sunday |
This table shows the timesheet data of an employee:
| Timesheet Data | |||||||
|---|---|---|---|---|---|---|---|
| Day | Worked Hours | Multiplier | Rate | Straight Hours | Straight Dollars | Worked Dollars | Extra Dollars |
| SUNDAY | 0 | 0.0 | $0.00 | $0.00 | $0.00 | $0.00 | |
| MONDAY | 8 | 1.0 | $12.00 | $12.00 | $96.00 | $96.00 | $4.00 |
| TUESDAY | 8 | 1.0 | $12.00 | $12.00 | $96.00 | $96.00 | $4.00 |
| WEDNESDAY | 8 | 1.0 | $10.00 | $10.00 | $80.00 | $80.00 | $4.00 |
| THURSDAY | 8 | 1.0 | $10.00 | $10.00 | $80.00 | $80.00 | $4.00 |
| FRIDAY | 8 | 1.0 | $10.00 | $10.00 | $80.00 | $80.00 | $4.00 |
| FRIDAY | 3 | 1.0 | $10.00 | $10.00 | $30.00 | $30.00 | |
| SATURDAY | 0 | 0.0 | $0.00 | $0.00 | $0.00 | $0.00 | |
| TOTALS | 43 | $462.00 | $462.00 | $20.00 | |||
The employee worked 16 hours at a job that pays $12.00/hr and 27 hours at a job that pays $10.00/hr. The employee earned an extra $4.00/day from Monday to Friday. Combined, the employee has worked 43 hours and earned $482.00 before any "overtime" calculations. The employee's regular rate of pay is calculated to be $11.21 ($482.00 / 43). As per the Department of Labor, the employee's additional compensation owed as overtime is $16.81 ($11.21 * 0.5 * 3). The final amount owed to the employee for the week is $498.81 ($482.00 + $16.81).
This table summarizes the calculations:
| Results | ||
|---|---|---|
| Earnings | $482.00 | |
| Hours Worked | 43 | |
| Regular Rate of Pay | $11.21 | (earnings divided by hours worked) |
| Overtime Earned | $16.81 | (on top of straight time pay for hours over 40) |
| Amount Due | $498.81 | (as per the FLSA rules that are defined by the Department of Labor) |
| Amount Paid | $482.00 | (amount paid per the rules that led up to this rule) |
| Premium | $16.81 | (Amount Due - Amount Paid) |