You can use this rule to reset the rate of specified premiums to an average pay rate at the end of the week or at termination. This is useful in situations where overtime premiums were produced as zero-rated items by other pre-existing rules (for example, the FLSA Overtime Rule) and administrators want to assign an appropriate rate to these items.
This rule runs at the end of the week or upon employee termination to reset the rates of specified premiums to an average pay rate for the week (modified by a multiplication factor, if required).
| Setting | Description |
|---|---|
| Pay codes eligible for calculation | The pay codes to include in the calculation of eligible work details and premiums. |
| Pay codes not eligible for calculation | The pay codes to exclude from the calculation of eligible work details and premiums. |
| Pay categories eligible for calculation | The pay categories to include in the calculation of eligible work details and premiums. |
| Pay categories not eligible for calculation |
The pay categories to exclude from the calculation of eligible work details and premiums. Note: The amounts in these settings are always included in the rule calculation, but you can use the duration settings to filter out any pay codes or categories to avoid possible double counting of time. |
| Pay codes eligible for duration Pay codes not eligible for duration Pay categories eligible for duration Pay categories not eligible for duration |
Define a subset of settings from the main eligibility list (that is, the codes and categories eligible for calculation as specified in the previous settings). This subset is used to determine the duration of time worked. For example, if the pay includes a separate shift premium for working after 6:00 PM, its amount should be included in the calculation, but not its duration, because the duration is already accounted for in the work details. |
| Max threshold duration in minutes |
The maximum duration threshold, in minutes, that the rule examines when calculating the average pay rate for premiums. The rule compares this value to the worked time calculated using the duration settings (that is, Pay codes eligible for duration, Pay codes not eligible for duration, Pay categories eligible for duration, and Pay categories not eligible for duration). If the value in the Max threshold for duration in minutes field is greater than the time calculated using the duration settings, the rule uses the duration settings value to calculate the average pay rate for premiums. However, if the duration settings value exceeds the value entered in the Max threshold for duration in minutes field, the rule uses the field value to calculate the rate. For example, say that you enter 2640 in the Max threshold for duration in minutes field. If an employee works less than 2,640 minutes, the actual worked minutes are taken as the duration. However, if the employee works more than 2,640 minutes, the duration is capped at 2,640 minutes. |
| Apply rate to work details | Include work detail pay codes and pay categories in the rule. You can apply the rule to blended pay codes and pay categories without having to split overtime premiums. (By default, the rule includes only premium pay codes and categories.) |
| Target pay code: overtime Target pay category: overtime Overtime rate multiplier Apply rate as incremental |
Identify the overtime premiums that are to have their rate changed and the multiplier to apply to the calculated average rate. Note that the rule changes the rate of premiums and not work details. The Overtime rate multiplier setting accepts both positive and negative values. Note: You must identify the target by both pay code and pay category, otherwise the rate won’t be applied. When the Apply rate as incremental checkbox is selected, the rule calculates the average rate by excluding the overtime rate which is used in blended overtime calculation. This allows you the flexibility to configure the ruleset with the Daily Overtime Rule and Weekly Overtime Rule using blended overtime rates, but without inflating the average rate. To support this calculation method, configure the rule as follows:
|
| Target pay code: doubletime Target pay category: doubletime Doubletime rate multiplier |
Identify the doubletime premiums that are to have their rate changed and the multiplier to apply to the calculated average rate. Note: You must identify the target by both pay code and pay category, otherwise the rate won’t be applied. |
| Use amount for piece work | Use the piece work amount rather than the rate by hours to calculate the average rate for items created when the Piece Rate Rule runs with the PieceRateTimesQuantity mode selected. By default, this checkbox is selected when you create a rule. However, it's cleared for any existing rules. |