Business Example 7 - Guarantees Plus Rule
This example covers the business needs where employees are guaranteed a base rate and a minimum number of hours per day. For example, a base rate of $10.00 and a minimum of 180 minutes per day.
Configuration
Condition: Always True
Rule parameters:
Parameter | Value |
---|---|
*Time Codes | WRK |
*Guarantee Period | option selected |
Guarantee Type |
Money option
selected
Rate to Use: Explicit option selected with 10.00 specified in the field |
*Use Guaranteed Minutes from | Constant Duration option selected with 180 specified in the field |
*Premium Time Code | Assign time code option selected with GUAR selected from the lookup |
Premium Hour Type | Assign hour type option selected with REG selected from the lookup |
Premium Rate | Money Owed option selected |
Results
These examples assume that all employees are guaranteed a base rate of $10.00 per hour.
7a - Employee works less than the minimum duration at the base rate
In this example, the employee works less than the minimum duration, all at the base rate.
Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
---|---|---|---|---|
180 | 120 | $10.00 | $20.00 | $10.00 |
The employee worked 120 minutes, but is guaranteed 180 minutes. Since the employee worked at the base rate and earned $20.00, a $10.00 premium is paid to cover the difference.
7b - Employee works the minimum duration at the base rate
In this example, the employee works the specified minimum duration, all at the base rate.
Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
---|---|---|---|---|
180 | 180 | $10.00 | $30.00 | $0.00 |
The employee worked 180 minutes, which is the amount that is guaranteed. Since the employee worked at the base rate and earned $30.00, no premium is paid.
7c - Employee works the minimum duration at a lower rate
In this example, the employee works the specified minimum duration, but at a lower rate than the base rate.
Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
---|---|---|---|---|
180 | 180 | $9.00 | $27.00 | $3.00 |
The employee worked 180 minutes, which is the amount that is guaranteed. Since the employee worked at a lower rate than the base rate and earned $27.00, a $3.00 premium is paid is cover the difference.
7d - Employee works less than the minimum duration, but makes more money
In this example, the employee works less than the minimum duration, but makes more money than is guaranteed.
Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
---|---|---|---|---|
180 | 150 | $15.00 | $37.50 | $0.00 |
The employee worked 150 minutes, but is guaranteed 180 minutes. But since the employee earned more money ($37.50) than is guaranteed, no premium is paid.
7e - Employee works more than the minimum duration, but makes less money
In this example, the employee works more than the minimum duration, but makes less money than is guaranteed.
Guaranteed Minutes | Minimum Worked | Rate Worked | Total Earnings | Premium |
---|---|---|---|---|
180 | 210 | $7.25 | $25.38 | $4.63 |
The employee worked 210 minutes, which is more than the guaranteed 180 minutes. But since the employee earned less money ($25.38) than is guaranteed, a $4.63 premium is paid to cover the difference.