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:
- 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
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. Note: Both the overtime hours and the weekly regular hours edit levels must always be the same. When you change the overtime edit rule, it automatically changes the edit rule on the Regular Hours Rules tab and vice versa.
These are the available options:
Note: This option is not editable if overtime is calculated and the
Overtime Distribution field on the Basic Information tab is set to
Daily.
|
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
Indicate if you want soft, hard, or no edits for daily overtime. If you specify a soft or hard edit, specify the hourly thresholds and overtime factors that apply.
Field | Description |
---|---|
Validation |
Select the level of editing for daily overtime.
Note: This option is not editable if overtime is calculated and the
Overtime Distribution field on the Basic Information tab is set to Weekly.
The available options are:
Note: If this option is set to Error or Warning, the
Overtime Distribution option on the Basic Information tab 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
Indicate if you want soft, hard, or no edits for overtime when an employee works all seven days of a work week. If you specify a soft or hard edit, 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 level of editing for overtime for working holidays.
Field | Description |
---|---|
Validation |
Select the level of editing for hoiday overtime. The available options are:
|
Saturday Overtime
Select the level of editing for overtime for working Saturdays.
Field | Description |
---|---|
Validation |
Select the level of editing for Saturday overtime. The available options are:
|
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:
|