Business Example 5 - Weekly Overtime Plus Rule
This example covers these business needs:
- Employees are paid at time and half their normal rate whenever they work more than a regular month. Employees work shift work Monday to Friday. They never work more than 20 days a month, but each employee can have a different regular shift, anywhere from 6 to 9 hours in duration. This specific duration is defined in the application for each employee.
- Overtime is paid as a premium against employees default labor allocations. Overtime is paid against the jobs in which the employees were working when the overtime was earned.
Configuration
Condition: Always True
Rule parameters:
| Parameter | Value |
|---|---|
| Hour Set Description | REG=EMPUDF~REGSHIFT(20), OT1=9999 |
| Work Detail Hour Types | REG, OT1, OTS |
| Work Detail Time Codes | WRK |
| Eligible Overtime Period | Calendar Month |
| Premium Hour Type | Assign hour type according to the Hour Set Description |
| Premium Time Code | Assign Time Code (PRM) |
| Premium Job | Allocate proportionally by job |
| Hour type marker for work details with overtime | OTS |
Additional configuration:
The Auto Recalc parameter in the Quick Rule Editor is set to ENTIRE MONTH.
On each employee's configuration page (), the REGSHIFT UDF contains the duration (in minutes) of the employee's regular shift.
The OTS hour type has a Multiple value of 0, set on the related configuration page.
See Payroll settings.
Results
5a - Employee earns overtime
In this example result, the employee’s regular shifts are 6 hours (360 minutes in the REGSHIFT UDF) in duration. During the month of June, the employee is scheduled from 10:00 to 16:00 in the CLERK job for 15 shifts and 4 shifts from 12:00 to 18:00.
On June 23rd to 26th, the employees stays an additional 2 hours, from 18:00 to 20:00, working the CS_CASHIER job.
The employee worked 122 eligible hours in the month. The employee’s threshold is 120 hours a month, so the employee earns 2 hours worth of premiums. Since the Allocate by: Job check box was selected, the rule is configured to pay the premium proportionally against the same jobs as the time that earned the overtime.
The employee reported 8 hours of eligible time against the CS_CASHIER job, and 114 hours against the CLERK job. Or, roughly 7% of the eligible work was in the CS_CASHIER job, and 93% in the MEETING job.
The rule pays 2 hours of overtime premiums, but as 2 premiums against different jobs. The premium time is split in the same proportions, and 9 minutes is paid against the CS_CASHIER job while 1 hour and 51 minutes is paid against the CLERK job.
The rule also changes the hour type of the work details that earned the overtime to OTS.
These tables summarize the employee’s pay for the week before and after the overtime is paid.
Before overtime:
| Hours | Time Code | Hour Type | Rate | Paid |
|---|---|---|---|---|
| 122 | WRK | REG | Regular rate at $8 an hour | $976 |
| Total: | $976 |
After overtime:
| Hours | Time Code | Hour Type | Rate | Paid |
|---|---|---|---|---|
| 120 | WRK | REG | Regular rate at $8 an hour | $960 |
| 2 | WRK | OTS | Unpaid | $0 |
| 2 | PRM | OT1 | Premium time and a half overtime rate at $12 an hour | $24 |
| Total: | $984 |
5b - Employee does not have a regular shift defined
In this example result, the employee's regular shift duration is not defined. The UDF is empty and the rule's configuration does not specify a default value.
When the employee submits their timesheet and the rule runs, the timesheet rows are highlighted in red with the issue icon displayed. When the user clicks on the issue icon, an error is displayed.
The employee's supervisor, a system administrator, or any user with access to the employee's maintenance page, must define the employee's regular shift duration in the REGSHIFT UDF for the rule to function as configured.