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Overtime Calculations

This setting allows you to define the weekly threshold for overtime eligibility and the pay rate for any eligible overtime. It is important to stay in accordance with the Fair Labor Standards Act (FLSA) mandates which state eligible employees that work more than 40 regular hours (not including leave hours such as sick, personal, or vacation) in a workweek must be paid 1.5 times their normal pay for any hours beyond 40. For more information, see the FLSA Overtime Pay Guidelines.

How To

Add an Overtime Calculation Row

  1. From the Overtime Calculations setting, click the Change calculations link.

  2. On the Overtime Calculations pop-up, enter the following:

    Calculate Overtime. The number of hours an eligible employee must work before receiving any overtime. Must be between 1 and 40.

    Hours Types. The type of hours that will count toward overtime. Hours Types will always have "Worked" hours listed. This default cannot be deleted.

    Rate. The pay rate at which any overtime hours are paid. The current system allows for 1.5 or 2 times the employee's regular pay rate.

    Active Date. The date when this new overtime rate becomes active. You should make any changes at the start of a new pay period or workweek.

  3. Click Save.

Note

The new overtime rate row becomes active (and cannot be deleted) on the Active Date you selected.