Overtime Hours Rules Tab
Use the Overtime Hour Rules tab to set up overtime validation rules for each of your timesheet classes.
The information you specify on this tab is used during time entry to do the following:
- Configure overtime handling and distribution options.
- Determine if hours entered should be treated as overtime hours based on work hours for the day or week.
- Verify that overtime hours have been entered for a UDT10 code with the correct overtime rate.
- Provide the correct level of edit for entries that violate the rules.
You can specify separate overtime rules for weekly, daily, seventh consecutive work day, holidays, Saturdays, or Sundays.
Overtime Rules
Overtime Options
Use fields in this section toset overtime handling options, including enabling automatic calculation and distribution of overtime.
Field | Description |
---|---|
Overtime Handling |
Use this setting to configure how overtime is handled when timesheets are entered. Choose from the following options:
|
Overtime Distribution |
This option is enabled if Overtime Handling is selected as Calculate. When overtime is automatically calculated, Time & Expense distributes the hours by moving them from the regular pay type to the mapped overtime pay type based on either a daily or weekly distribution method.
Note: Time & Expense distributes hours from regular to overtime only if the regular pay type counts towards overtime and is mapped to an overtime pay type (level 1 and/or level 2). See the
Pay Type Rules Source field description below.
From the Overtime Distribution drop-down list, choose the overtime time option that applies for this timesheet class. Choose from the following options:
|
Pay Type Rules Source |
Note: This field is disabled if Overtime Handling is selected as None.
This setting determines the source of the pay type rules used during the calculation and distribution of overtime. Choose from the following options:
|
Custom Overtime Dialog | Select this option to open the Custom Overtime dialog when a timesheet for an employee with this class is approved. |
Calculate on Save |
This setting is selected and enabled by default if Overtime Handling is selected as Calculate. When the checkbox is selected, overtime is calculated and distributed after the timesheet is saved. The overtime immediately populates the Overtime Distribution subtask of the timesheet |
Overtime Categories
- Holiday: If a timesheet includes non-holiday hours that exceed the overtime thresholds, rules in this section are applied first.
- 7 Consecutive Day Overtime: If a timesheet includes hours for seven consecutive days that exceed overtime thresholds, this rule is applied second.
- Saturday Overtime: If timesheet hours exceed Saturday overtime thresholds, this rule is applied third.
- Sunday Overtime: If timesheet hours exceed Sunday overtime thresholds, this rule is applied fourth.
- Daily Overtime: If timesheet hours exceed the daily overtime thresholds, this rule is applied fifth.
- Weekly Overtime: If timesheet hours exceed weekly overtime thresholds but not daily ones, this rule is applied last.
Weekly Overtime
Use this section to select validation rules for overtime for this timesheet class.
Field | Description |
---|---|
Validation |
Select the level of editing for weekly overtime. These are the available options:
|
Use |
This option indicates the threshold levels you want to use for determining overtime for a week. Use is always checked for Level 1, but you can clear it for Level 2 if you only have one weekly overtime rate. |
Threshold |
This is the number of hours for a week beyond which employees are paid an overtime rate. You can use one or two thresholds, each with its own overtime rate. For example, you might set up the Level 1 threshold to pay overtime at a rate of 1.50 for hours over 40 for the week, and set up the Level 2 threshold to pay overtime at a rate of 2.00 for hours over 50. |
Hours Over |
For each weekly threshold you are using, enter the number of hours beyond which employees are paid the overtime rate for that threshold. For example, you enter 40 for Level 1 to pay overtime at a rate of 1.50 for hours over 40 for the week, and you enter 50 for Level 2 to pay overtime at a rate of 2.00 for hours over 50. |
Perform Edit By | This drop-down allows you to base the edit rule on a specific time frame. It is enabled when you choose either
Error or
Warning from the Validation drop-down.
Choose from the following options:
|
Payroll Week Starts |
Select the day of the week on which the work week starts. The week's start day for overtime must be the same as for weekly regular hours. If you change this setting on one of the tabs, it is changed automatically on the other as well. This entry is also used to determine if an employee has worked seven consecutive days. To be eligible for overtime for working a seventh consecutive day (assuming your company offers such overtime), the employee must have recorded time for each day of the work week, beginning with this day. |
Include Previous Day(s) Overtime Hours in Calculation (Pyramid OT) |
Select this option to include overtime hours already worked when determining whether to apply the regular or overtime rate to new hours worked. Assume that between Monday and Thursday an employee works 32 regular hours (8 per day) and 8 overtime hours (2 per day), for a total of 40 hours. If this option is selected, the 8 overtime hours already worked are counted when determining whether to apply the regular or overtime rate to any hours worked on the fifth day. In this example, all hours worked on Friday, the fifth day, are paid at the overtime rate because 40 hours were already worked between Monday and Thursday, even though a portion of those hours were categorized as overtime, not regular. In this same example, if this option is not selected the overtime rate is not applied until the employee accumulates 8 additional regular hours on the fifth day, Friday. In either scenario, the employee is paid overtime for the two extra hours worked each day between Monday and Thursday, but when this option is selected, all the Friday hours are paid at the overtime rate. When the option is not selected, the first eight hours worked on Friday are paid at the regular rate. This setting is especially useful for companies who employ workers in California, where overtime rules stipulate that certain classes of employees, such as nonexempt workers over 18 years of age, cannot work more than 8 hours per day, or more than 40 per week, at a rate that is less than one and one-half times their regular pay rate. |
Daily Overtime
Select the type of validation to apply for daily overtime. If you specify select a Error or Warning, specify the hourly thresholds and overtime factors that apply.
Field | Description |
---|---|
Validation |
Select the level of editing for daily overtime. The available options are: Note: This option is not editable if Overtime Distribution is selected as Weekly.
Note: If this option is set to Error or Warning,
Overtime Distribution defaults to
Daily.
|
Use |
Indicate the threshold levels you want to use for determining overtime for a day. Use is always checked for Level 1, but you can clear the option for Level 2 if you only have one daily overtime rate. |
Threshold |
Indicates the number of hours for a day beyond which employees are paid an overtime rate. You can use one or two thresholds, each with its own overtime rate. For example, you might set up the Level 1 threshold to pay overtime at a rate of 1.50 for hours over 8 for a day and set up the Level 2 threshold to pay overtime at a rate of 2.00 for hours over 12. |
Hours Over |
For each daily threshold you are using, enter the number of hours beyond which employees are paid the overtime rate for that threshold. For example, enter 8 for Level 1 to pay overtime at a rate of 1.50 for hours over 8 for a day, and you enter 12 for Level 2 to pay overtime at a rate of 2.00 for hours over 12. |
7 Consecutive Day Overtime
Select the type of validation to apply when an employee works all seven days of a work week. Indicate if you want soft, hard, or no edits for overtime . If you select Error or Warning, specify the hourly thresholds and overtime factors that apply.
Field | Description |
---|---|
Validation |
Select the level of editing for overtime for working a seventh consecutive day. These are the available options:
|
Use |
Indicate the threshold levels you want to use for determining overtime for a seventh consecutive day. Use is always checked for Level 1, but you can clear it for Level 2 if you only have one overtime rate for work on a seventh day. |
Threshold |
Indicates the number of work hours for a seventh consecutive work day beyond which employees are paid an overtime rate. You can use one or two thresholds, each with its own overtime rate. For example, you might set up the Level 1 threshold to pay overtime at a rate of 1.50 for any hours worked on an employee's seventh consecutive work day and set up the Level 2 threshold to pay overtime at a rate of 2.00 for hours over 8. |
Hours Over |
For each seven consecutive days threshold you are using, enter the number of hours beyond which employees are paid the overtime rate for that threshold. For example, enter 0 for Level 1 to pay overtime at a rate of 1.50 for any work hours on a seventh consecutive day, and you enter 8 for Level 2 to pay overtime at a rate of 2.00 for work hours over 8. |
Holiday Overtime
Select the type of validation to apply for overtime on holidays.
Field | Description |
---|---|
Validation |
Select the level of editing for holiday overtime. The available options are:
|
Saturday Overtime
Select the type of validation for overtime on Saturdays.
Field | Description |
---|---|
Validation |
Select the level of editing for Saturday overtime. The available options are:
|
Use |
Indicate the threshold levels you want to use for determining overtime. Use is always checked for Level 1, but you can clear it for Level 2 if you only have one overtime rate for work on a seventh day. |
Threshold |
Indicates the number of work hours for which employees are paid an overtime rate. You can use one or two thresholds, each with its own overtime rate. For example, you might set up the Level 1 threshold to pay overtime at a rate of 1.50 for any hours worked on an employee's seventh consecutive work day and set up the Level 2 threshold to pay overtime at a rate of 2.00 for hours over 8. |
Hours Over |
For each threshold you are using, enter the number of hours beyond which employees are paid the overtime rate for that threshold. For example, enter 0 for Level 1 to pay overtime at a rate of 1.50 for any work hours on a seventh consecutive day, and you enter 8 for Level 2 to pay overtime at a rate of 2.00 for work hours over 8. |
Sunday Overtime
Select the level of editing for overtime for working Sundays.
Field | Description |
---|---|
Validation |
Select the level of editing for Sunday overtime. The available options are:
|
Use |
Indicate the threshold levels you want to use for determining overtime. Use is always checked for Level 1, but you can clear it for Level 2 if you only have one overtime rate for work on a Sunday. |
Threshold |
Indicates the number of work hours for which employees are paid an overtime rate. You can use one or two thresholds, each with its own overtime rate. For example, you might set up the Level 1 threshold to pay overtime at a rate of 1.50 for any hours worked on a Sunday and set up the Level 2 threshold to pay overtime at a rate of 2.00 for hours over 8. |
Hours Over |
For each threshold you are using, enter the number of hours beyond which employees are paid the overtime rate for that threshold. For example, enter 0 for Level 1 to pay overtime at a rate of 1.50 for any work hours on a seventh consecutive day, and you enter 8 for Level 2 to pay overtime at a rate of 2.00 for work hours over 8. |