Business example 5: Shift Premium Zone Rule
This example covers these business needs:
- Employees earn one hour of premium pay for every hour of eligible time worked on a holiday, up to a maximum duration of 5 hours.
- The duration of the premium is multiplied by the hour type multiplier of the work details which earn the premium pay.
- Premiums are paid at 75% of the employee’s base rate, against the job and department of the first work details which earn the premium pay.
- Employees are only paid a premium for the unscheduled time they work during a holiday.
Configuration
Condition: Is Holiday
Rule parameters:
| Parameter | Value |
|---|---|
| Shift Premium Zone | Unscheduled Holiday Premium |
Shift Premium Zone parameters:
| Parameter | Value |
|---|---|
| *Zone Name | Unscheduled Holiday Premium |
| *Zone Start Time | 00:00 |
| *Zone End Time | 00:00 |
| Time Code | PRM |
| Hour Type | REG |
| *Labor Metrics Method | First |
| Project | HOL PREM |
| *Rate | 75 |
| Rate is a Percentage? | Selected |
| Apply Hour Type Multiplier to Hours | Selected |
| Premium Maximum Minutes per Day | 300 |
| Eligible Time Codes | WRK |
| *Type of Time Eligible for Premium | Unscheduled |
Results
5a - Employee earns a premium
The employee is scheduled from 10:00 to 14:00 on December 26th, which is configured as a holiday in the application. The employee works from 10:00 to 16:00 in the SUPPORT department, earning $12 an hour. The employee works in multiple jobs through the day, from 10:00 to 14:00 on the ONSITE job, 14:00 to 15:00 on the HELPDESK job, and returns to the ONSITE job for 15:00 to 16:00.
Although the employee recorded 6 hours of work in the zone, only 2 hours are unscheduled time and eligible to earn the employee premium pay. The employee earns a 3 hour premium (2 hours of eligible time multiplied by the OT1 hour type’s multiplier of 1.5), paid at $9.00 an hour (75% of the employee’s base rate of $12 an hour).
The premium is paid against the HELPDESK job (the first work detail which earned the employee the premium) and the SUPPORT department.
5b - Employee earns the maximum premium
The employee is not scheduled to work on December 26th. The employee records working from 12:00 to 16:00 in the SALES department on the CSERVE job and from 17:00 to 19:00 on the CASHIER job, in SALES. The employee earns $10 an hour.
Although the employee recorded 6 hours of eligible time in the zone, the maximum duration of the premium is 5 hours, so the Shift Premium Zone pays the employee a 5 hour premium at $7.50 an hour.
The premium is paid against the CSERVE job and the SALES department, the labor metrics of the first work detail which earn the employee the premium.