Overtime Rules are used to change the rate of pay for employee automatically based on the number of hours they exceed a threshold of hours worked during a period of time.
Overtime Rule
Open
Time and Attendance > Installation & Maintenance > Overtime Rules.Create a new Overtime Rule by pressing Insert.
The 8/44 overtime rule will use two intervals to determine when overtime will be paid per-day and per-week. When you have completed the guide, the overtime rule should look similar to the one below.
| 1 |
|
| 2 |
|
Daily Interval
The daily interval should apply overtime pay when more than 8 hours are worked in any given day.
Add a new interval from the Details tab of the Overtime Rule by pressing Insert.
From the Details tab, the daily interval will be setup to apply on any day of the week. The Earning Code used to pay overtime is selected here as well (see Daily Details).
From the Threshold tab, the 8-hour limit on hours worked before overtime is paid will be setup (see Daily Threshold).
| 1 | A Daily interval is used for the per-day overtime rule. |
| 2 | All days all applicable for overtime. |
| 3 | An appropriate Earn Code is selected to pay the overtime on. |
| 4 | The overtime accumulator used by the Earn Code will be displayed here. |
Overtime Accumulator If the overtime accumulator is not setup correctly on the overtime interval Earning Code, the overtime hours will not be calculated correctly when overtime rules are applied. |
| 1 | Selecting Number for the Threshold Source allows the hours and minutes for the overtime threshold to be entered below. |
| 2 | The daily maximum for the 8/44 overtime rule is 8 hours. |
Weekly Interval
The weekly overtime interval will be setup much the same as the daily interval. The key differences are that the interval is setup as Weekly, and the threshold is 44 hours.
| 1 | A weekly interval is used for the per-week overtime rule. |
| 2 | This rule will be applicable for any week. |
| 3 | An appropriate Earn Code is selected to pay the overtime on. |
| 4 | The overtime accumulator used by the Earn Code will be displayed here. |
Important The overtime accumulator for the weekly interval should be the same as the daily interval accumulator. |
Applicable weeks The Applicable field of the weekly overtime rule can be used to specify which week of a number of weeks the rule will apply.
Examples
|
| 1 | Selecting Number for the Threshold Source allows the hours and minutes for the overtime threshold to be entered below. |
| 2 | The weekly maximum for the 8/44 overtime rule is 44 hours. |
When an interval other than Daily it is important to know what day of the week will be the start of the interval. Conveniently, this can be reviewed from the aptly named Interval Start Dates tab of the Overtime Rule.
To change the interval start date:
Open
Time and Attendance > Installation & Maintenance > Work Groups.Open the Work Group to maintain.
Open the Details tab and change the Interval Start Date as required. (The current day of the week is displayed to the right).
Assign Overtime Rules to Work Groups
The last thing to do after creating an overtime rule is to apply it to a Work Group so that it can actually be used. Overtime Rules on a Work Group are automatically applied when Time Data is approved within Maintain Time Data.
Open
Time and Attendance > Installation & Maintenance > Work Groups.Open the
Work Groupto add the overtime rule to:From the
Detailstab, select theOvertime Rulefrom the drop down.
Save the changes by pressing OK.
Overtime in action
When time is processed from Maintain Time Data the overtime rules will be applied automatically.
The following weekly schedule contains two shifts that would qualify for overtime according to the 8/44 overtime rule.
| 1 | Monday qualifies for overtime because the number of hours worked in that day exceeds 8 hours. |
| 2 | Friday qualifies for overtime because the number of hours worked in the week exceeds 44 hours. |
When the time is approved in Maintain Time Data the overtime rules are applied and the overtime hours are generated automatically.
| 1 | On Monday, 2 hours of overtime are generated because the daily maximum was exceeded. |
| 2 | On Friday, 4 hours of overtime are generated because the weekly maximum was exceeded. |
Overtime Accumulators
Overtime accumulators are used to keep track of which hours worked during a shift should be considered normal pay, and which should be overtime pay. Making things slightly more complicated is that within hours that are considered overtime, some of those hours may be paid at a higher rate than others.
For example, in British Columbia the overtime regulations (as of 2018) mandates two overtime rates for hours during the same day.
| 1 | 1.5 times on the first 4 hours worked after 8 hours in a day, and |
| 2 | 2.0 times on any hours beyond 12 hours in a day. |
| 3 | Any hours worked beyond 40 hours in a week are paid at 1.5 times. |
Below is an example shift that an employee worked 14 hours in total. The first 8 are paid as regular earnings, with the next 4 paid at 1.5 times, and the final 2 hours are paid at 2.0 times.
This works because the Earning Code for the two overtime pays are setup to use different accumulators, with Overtime 1.5 accumulating under the Time and One-Half accumulator, and Doubletime 2.0 accumulating under the Double Time accumulator.
| Overtime accumulators are tiered, so hours accumulated in a lower tier will be included with the hours of the accumulator above it. (Time and One-Half hours will count towards Double Time hours, but not vice-versa.) |