Business Example 8 - Shift Premium Zone
This example covers these business needs:
- Employees earn premium pay for every hour of eligible work between 23:00 and 07:00 (night premium).
- Night premiums are paid as a percentage (50%) of the employee's worked rate multiplied by the premium's hour type multiplier.
- The employer's payroll system does not permit separate records for the premium time. Therefore, instead of creating a premium record for the shift premium, the rate of the eligible work details is updated directly.
Configuration
Condition: Always True
Rule parameters:
| Parameter | Value |
|---|---|
| Shift Premium Zone | GRAVEYARD |
Shift Premium Zone parameters:
| Parameter | Value |
|---|---|
| *Zone Name | GRAVEYARD |
| Zone Description | Overnight Bonus |
| *Zone Start Time | 23:00 |
| *Zone End Time | 07:00 |
| Time Code | <blank> |
| Hour Type | <blank> |
| *Labor Metrics Method | Update Details Directly option selected |
| *Rate | 0.50 |
| Rate is a Percentage? | Selected |
| *Rate to Use | Worked Rate |
| Apply Hour Type Multiplier to the Rate | Selected |
| Eligible Time Codes | WRK |
| Eligible Hour Types | REG, OT1 |
| *Type of Time Eligible for Premium | Both option selected |
| *Base Shift Eligibility on | Actual Shift option selected |
| *Type of Eligible Detail | Work option selected |
Results
In this example, the employee worked 8 hours in the shift premium zone from 23:00 to 07:00 at a rate of $15.00 an hour.
The employee had this work detail before the rule was applied:
| Start Time | End Time | Hours | Rate | Time Code | Hour Type |
|---|---|---|---|---|---|
| 23:00 | 07:00 | 8 | 15.00 | WRK | OT1 |
The premium rate is calculated as 50% of the employee's worked rate ($7.50) multiplied by the hour type multiplier (1.5), or $11.25. This amount is added to the employee's worked rate ($15.00) for an updated rate of $26.25.
The employee has this work detail after the rule is applied:
| Start Time | End Time | Hours | Rate | Time Code | Hour Type |
|---|---|---|---|---|---|
| 23:00 | 07:00 | 8 | 26.25 | WRK | OT1 |