Overtime Specifications

This window is used to setup the overtime pay rules for a Pay Period. These are the Totalizer Overtime Specifications for Pay Period Rules. They can be set up and used alone or with Pay Period Rules in Interpreter.

Prerequisites

Rules and Guidelines

  • Rules for overtime by day are defined in the Daily Rules profile.
  • Specify if overtime is to be paid Weekly or by Pay Period.

Field Information

The method this rule will use to calculate overtime

Code Description
B Both - Both Flex and Time methods are used.
F Flex -The day begins at a specified number of hours after the employee's last out punch.
T Time - The day begins at a specified time of day.

 

If using both the time of day divide and the flex day divide, a time record will be considered a new day either if the in punch occurs after the day divide, or if the employee is punched out for a period of time greater than the amount entered in the Flex Day Divide Hours field.

This is the time that each day officially starts for overtime calculation purposes. If an employee's time record crosses over the day divide into another day, the system separates the accumulated time for each day to calculate overtime.

Employees who work day shifts will usually have a day that ends at midnight, enter 0000 or 1200a.

For employees working night shifts, their day might end in the early morning e.g. enter 500 or 500a. In this case, their 24 hour day for overtime purposes would end at 5:00 am each day.

This field is used only when overtime is calculated by the day and the Day Divide Method field is set to Time or Both.

The number of hours an employee needs to be punched out, the interval from an out punch to the next in punch, for the daily overtime accumulator to rest. The flex day divide can be used when an employee does not work a set schedule.

  • This field is used only when overtime is calculated by the day and the Day Divide Method field is set to Flex or Both. If the Day Divide Method field is set to Flex, the time of day divide will be overridden by the flex day divide hours.
  • Example:
    Day Divide MethodDay Divide TimeFlex Day Divide
    Flex1200 a4.00 hours
    • For an employee who punches out on Monday at 3:00 am and back in on Monday at 8:00 am, the in punch is considered a new day when calculating daily overtime.
    • Even though the day divide is set for midnight and the punch out and in were performed on the same day, the time interval between the out punch at 3:00 am and the in punch at 8:00 am is greater than 4 hours.
    • The three morning hours will not count toward the day's overtime.

 

This field determines the number of hours an employee needs to punch out, the interval from an out punch to the next in punch, before the next punch is considered a new shift.

The Shift Divide Hours field is used for premium processing, punches crossing over the pay period ending date and time, determining which pay period the punch should be applied to, and meal deductions automatic meal deductions will not be taken twice for the same shift.

  • If an employee is punched out for an amount of time less than or equal to the number of hours entered in this field, the punch records are considered the same shift.
  • Example:

    If the shift Divide Hours is set to 4.00 and an employee works from 8:00 am to 5:00 pm, any punch occurring at or between 5:00 pm and 9:00 pm is considered the same shift, Any punch occurring after 9:00 pm is considered a new shift.

 

The day of the week the pay week starts. This field is used for calculating weekly overtime.

 

Time punched in/out from a terminal or time clock is normally assigned to the Regular hours time code. All hours that exceed the parameters set by the associated Pay on All Hours Over field, are assigned to the Overtime Block 1, 2, 3 and 4 Time Codes.

  • Once any criteria has been met as to how many hours can be assigned to Regular Hours then these are the Time Codes this time is allocated to.

  • Example:

    To pay employees a Time Code of ORD for all regular hours worked in a week, then ORD would be entered in the Regular Hours field.

    If the employee is to receive a Time Code of OT1.5 for all hours over 40 in a week, enter OT1.5 in the Overtime Block 1 field and 40.00 in the Pay on AllHours Over field along side the Overtime Block 1 Pay Code.

  • The Time Code to used when paying the hours that exceed the number of hours specified in the OT Block 1, 2, 3 and 4 Pay On All Hours Over field.

 

These fields related to the OT by Week option. The number of hours employees in the class must work in a week, before additional hours accrue as overtime. Up to four weekly overtime settings can be defined so that employees can earn overtime hours at different rates of pay as each limit is reached.

  • Example:

    If an employee worked 49.00 hours for the week, they would accumulate 40.00 hours on the regular hours Time Code REG and 9 hours on the overtime block 1 Time Code OT1.5.

This determines if overtime is paid to employees who work for more than a specified number of hours during a week.

Code Description
Y The weekly overtime program checks the parameters set in the Start Day of Week, Pay Code, and weekly pay on All Hours Over fields to determine if overtime is paid
N Overtime is not calculated by the week
  • The Time Code to used when paying the hours that exceed the number of hours specified in the OT Block 1, 2, 3 and 4 Pay On All Hours Over field.
  • These fields, related to the OT by Week option set as Y, specify the number of hours employees in this code must work in a week, before additional hours accrue as Time Codes specified in Overtime Block 1, 2, 3, & 4.
  • Up to four weekly overtime settings can be specified so that employees can earn overtime hours at different rates of pay as each limit is reached.
  • When using OT by Week field, you also need to configure Program Control TOTAL Position 20 to indicate if the Time Code should be excluded or not from the overtime calculations.

 

If OT by Period is set to Y, the following fields specify the number of hours employees must work in a pay period before additional hours accrue as overtime. Up to four pay period overtime settings can be specified, so that employee can earn overtime hours at different rates of pay as each limit is reached.

 If an employee is to receive the Overtime Block 1 Time Code for all hours over 40 for the pay period, and double time for all hours over 50, 40.00 is entered in the Pay on All Hours Over field beside Overtime Block 1 Time Code and 50.00 in the Pay On All Hours field beside the Overtime Block 2 Pay Code.

If an employee worked 55.00 hours for the pay period the employee would accumulate 40.00 hours on the regular hours pay code, 10 hours on the Overtime Block 1 pay code, and 5.00 hours on the Overtime Block 2 pay code.

 

This determines if paying overtime to employee who work more than a specified number of hours during a pay period.

Code Description
Y Overtime is calculated by the pay period. The pay period overtime program checks the parameters set in the Time Code and Pay Period Pay on All Hours Over fields to determine if overtime is paid
N Overtime is not calculated by the pay period.
  • The Time Code to used when paying the hours that exceed the number of hours specified in the OT Block 1, 2, 3 and 4 Pay On All Hours Over field.
  • These fields, related to the OT by Period option is set as Y,specify the number of hours employees in this code must work in a Pay Period, before additional hours accrue as Time Codes specified in Overtime Block 1, 2, 3 & 4.
  • Up to four weekly overtime settings can be specified so that employees can earn overtime hours at different rates of pay as each limit is reached.

 

 

If the system is setup to pay Daily with Weekly or Pay Period Overtime. this determines how the system counts hours in the regular and overtime blocks to meet your overtime specifications.

Code Description
Y The system is to start with the last time record and count only each day's overtime hours toward meeting the weekly overtime requirements.
N Is the system to start with the last time record and count all hours until the weekly overtime requirements are met. Remaining hours are then counted as overtime.

Daily Overtime is setup to assign OT1 for any hours over 8 and also have weekly overtime setup to assign OT1 for any hours over 40 and OT2 for any hours over 48.

  • If the option is set to Y, the system counts each day's regular hours and overtime hours separately and then, on the last day, totals the regular hours and, from the overtime hours, calculates which overtime categories those hours fall into.
  • The employee receives 40 regular hours, 8 OT1 hours and 4 OT2 hours.
  • If this option is set to N, the system accumulates the total hours through the week, regardless if they are regular or overtime. When 48 hours is reached on Friday, the balance of the hours for that day are moved into the OT2 hours category.
  • When the hours are totaled for the week, the employee receives 38 regular hours, 10 OT1 hours and 4 OT2 hours. This has resulted in changing regular hours to overtime hours.
      Checking Option = YesOption Unchecked = No
     Hrs WorkedREG HrsOT1 HrsOT2 HrsREG HrsOT1 HrsOT2 Hrs
    Monday1284 84 
    Tuesday1082 82 
    Wednesday1082 82 
    Thursday108 282 
    Friday108 26 4
    Totals52408438104

 

This flag displays the following options:

Options Description
Elapsed Time When E is selected, Preceda will calculate the Weekly/Period Overtime (e.g. if 8 hours of elapsed time are punched, then the OT will accumulate 8 hours).

 

Time Code Breakdown

When T is selected, Preceda will look at each Time Code used in the breakdown and determine if the amount of hours to be accumulated is based on the Exclude from Overtime Calculation flag.

Note that when the Exclude from Overtime Calculation flag is set to Y, the hours will not be accumulated towards the period OT. When set to N, they will be.

Program Control TOTAL Position 18 will determine whether this calculated hours will be used instead of the hours calculated via the Elapsed Time method for the Pay Period Overtime amount.

 

The number of hours that need to be worked, during the week or pay period to qualify for daily overtime.

  • Example:

    If the setting were for 40 hours per week, an employee who worked 10 hours on Monday and Tuesday, 4 hours on Wednesday and 8 hours on Thursday and Friday would be paid for 40 regular hours instead of 36 regular hours and 4 overtime hours.

    If the employee worked 10 hours on Friday, they would be paid for 40 regular hours and 2 overtime hours rather than for 36 regular hours and 6 overtime hours.

     

Indicate when is an employee qualified for daily overtime.

Code Description
P Per Pay Period, the number of hours will be tallied during the entire pay period.
W For Per Week, enter the number of hours within the week, that employees must work to qualify for daily overtime.

 

This is a Time Code to be used for overtime adjustments.

The value entered in this field is used in conjunction with the Shift Divide Hours. This is the number of hours between the last Clock Out and Clock In. The system will check the difference, look at the Shift Divide Hours, and then determine if the segment will be treated as a new shift, allowing the output of the segment of time to a different Time Code.

  • If the break between two successive Time segments on Time Editor is less than the value in the Shift Break Qualifying Hours field and greater than the value in the Shift Divide Hours field, then the Time Code specified in the Shift Break Time Code Override field will be assigned to the second Time segment's Time Code Override field whenever an Award Interpretation is performed.
  • If this field is zero, then no Shift Break Time Code Override will be applied.
  • If this field has a value greater than the value in the Shift Divide Hours field, then a Replacement type Time Code must also be entered in the Shift Break Time Code Override field.
  • This field, together with the Shift Break Time Code Override field, is most commonly used to identify when an employee did not have a sufficient break between two shifts and therefore the second shift may need to be paid differently to a normal subsequent shift.

 

If the break between two successive Time segments on Time Editor is less than the value in the Shift Break Qualifying Hours field, and greater than the value in the Shift Divide Hours field, then the Time Code specified in this field will be assigned to the second Time segment's Time Code Override field whenever an Award Interpretation is performed.

If this field has a Time Code specified, then a value must also be entered in the Shift Break Qualifying Hours field.

This field, together with the Shift Break Qualifying Hours field, is most commonly used to identify when an employee did not have a sufficient break between two shifts and therefore the second shift may need to be paid differently to a normal subsequent shift.