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: None: This is the default setting for new timesheet classes. When this option is selected, automatic overtime calculation and distribution is turned off, and overtime entries are not validated on the timesheet. Leave this option selected if you do not want to enable calculation of overtime or have manual overtime entries validated. Validate: Choose this option if you want overtime entered on the timesheet validated based on overtime rules, but you do not want it automatically calculated by Time & Expense. Calculate: Choose this option if you want Time & Expense to automatically calculate and distribute overtime hours during time entry. When this setting is enabled, employees need only enter regular hours, and when the timesheet is saved, overtime is automatically calculated based on the mapping of regular pay types to overtime pay types and overtime rules. Selecting Calculate also enables the Overtime Distribution subtask link on the timesheet.
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: None: Choose this option if you want overtime calculated but not distributed Daily: This is the default value when Overtime Handling is selected as Calculate. Note: This option is not valid if Start/Stop Detail is selected from Entry Mode on the Basic Information Tab When this option is selected, overtime is calculated based on a daily threshold. For example, if the threshold per day is 8 hours, and 12 are entered for a given day, then 4 hours are distributed to overtime. When overtime hours are distributed on a daily basis, Time & Expense handles the labor distribution by spreading the hours to the charge with the least number of hours first and the one with the most number of hours last. For any given day where overtime occurs, all regular charges that count towards overtime, and which are mapped to an overtime pay type (either level 1 or level 2), receive some portion of the hours so that the amount is distributed evenly across the pay types. Charges on the last day are plugged if necessary. When performing automatic overtime calculations, Time & Expense also refers to settings selected under each Overtime section (for example, Daily, 7th Consecutive Day, Holiday, Saturday, and Sunday). See Overtime Categories below for more information. Weekly: Select this option if overtime is calculated based on a weekly hours threshold on the Overtime Hours Rules tab. For example, if the threshold per week is 40 hours, and 44 are entered for a given week, then 4 hours are distributed to overtime. When overtime hours are distributed on a weekly basis, Time & Expense handles the labor distribution by first calculating how many hours to distribute to each day based on the number of hours that count towards overtime as compared to the total for the week. All regular charges that count towards overtime, and which are mapped to an overtime pay type (either level 1 or level 2), receive some portion of the hours so that the amount is distributed evenly across days and pay types. If necessary, hours on the last day are rounded and plugged. Note: This option is not valid if any of the daily overtime rules are enabled.
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: Pay Type: This is the default setting if Overtime Handling is selected as either Calculate or Validate. . Leave this option selected to have Time & Expense refer directly to the overtime mapping configured in the Time & Expense > Configuration > Master Data > UDT10S screen. Timesheet Class: Choose this option to have Time & Expense refer to the pay types selected in the Pay Types (UDT10) Links subtask of the Timesheet Classes screen. Options you select in the subtask, such Level 1 and Level 2 mapping options, apply just to the selected Timesheet Class, and the options can be different than the same options in the UDT10 (Pay Type) application. Note: When this option is selected, you must be sure to map regular pay types that count towards overtime to the overtime pay type to which the hours should be distributed. For example, if sufficient hours are entered against a regular pay type to meet the level 1 or level 2 hours threshold and a level 1 or level 2 overtime mapping charge is not selected, members of the timesheet class will receive a charge error when the timesheet is signed.
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

This section describes the various overtime categories that you can configure for the timesheet class. When validating overtime on timesheets, Time & Expense applies overtime rules in the following order:

• 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 validation for weekly overtime. These are the available options: None - No edit based on weekly overtime rules is done. Error - Entries are checked based on weekly overtime rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed. Warning - Entries are checked based on weekly overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections.
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: Each Day: Select this option if you want to perform the edit based on daily hours. Whole Week : Select this option if you want to perform the edit based on weekly totals. Note: Fields under Daily Overtime remain editable when this option is selected.
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 validation for daily overtime. The available options are: Note: This option is not editable if Overtime Distribution is selected as Weekly. None — No edit based on daily overtime rules is done. Error — Entries are checked based on daily overtime rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed. Warning — Entries are checked based on daily overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections. 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 validation for overtime for working a seventh consecutive day. These are the available options: None — No edit based on seven consecutive days overtime rules is done. Error — Entries are selected based on seven consecutive days overtime rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed. Warning — Entries are selected based on seven consecutive days overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections.
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 validation for holiday overtime. The available options are: None — No edit based on holiday overtime rules is performed. Error — Entries are checked based on holiday rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed. Warning — Entries are checked based on holiday overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections.

Note: When holidays count towards overtime, if the holiday falls at the end of the week, such as on Thursday or Friday, then hours on those days are taken into account first.

Saturday Overtime

Select the type of validation for overtime on Saturdays.

Field	Description
Validation	Select the level of validation for Saturday overtime. The available options are: None — No edit based on Saturday overtime rules is performed. Error — Entries are checked based on Saturday overtime rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed. Warning — Entries are checked based on Saturday overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections.
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 validation for overtime for working Sundays.

Field	Description
Validation	Select the level of validation for Sunday overtime. The available options are: None — No edit based on Sunday overtime rules is performed. Error — Entries are checked based on Sunday overtime rules. If an entry violates the rules, an error message is displayed. The entry must be corrected before the timesheet can be signed. Warning — Entries are checked based on Sunday overtime rules. If an entry violates the rules, a warning message is displayed. However, the employee can sign the timesheet without making any corrections.
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.