Clawback Premium Rule

Dayforce Implementation Guide

Version
R2025.1.1
Clawback Premium Rule

You can use this rule to ensure that employees receive premiums only if they work their next scheduled shift. The rule itself doesn’t pay out premiums, but it claws back any premiums, typically paid out by other rules, for employees who didn’t work their next scheduled shift.

The rule takes into account approved time away when it searches for the employee’s next scheduled shift, so an employee doesn’t lose a premium if they’re off on vacation for the next several days. The rule examines the first scheduled shift after the vacation and checks whether the employee worked.

Clawback Premium Rule settings
Setting Description
Assign Premium Paycode The pay code the rule assigns to premiums it claws back.
Assign Premium Paycategory The pay category the rule assigns to premiums it claws back. This determines the impact the rule can have to the employee’s pay when it claws back a premium. If you select an unpaid pay category, the employee loses the premium pay entirely. However, if you select a regular pay category, employees lose only the time and a half or other increased pay rates of premiums.
Premium Paycode to look for The pay code of the premiums you want the rule to claw back. The rule only impacts premiums with the selected pay code. So, if you want to claw back night premiums if employees fail to work their next scheduled shift, you’d select the pay code representing night premiums.
Paycodes Eligible that count as work The pay codes that mark eligible worked time. When the rule examines whether employees worked their scheduled shift after a premium, it looks for time with one of the selected pay codes. Leave blank and the rule doesn’t examine pay codes when determining if scheduled shifts were worked.
Paycodes Ineligible that do not count as work The pay codes that mark ineligible worked time. When the rule examines whether employees worked their scheduled shift after a premium, time with one of the selected pay codes doesn’t count as work. Leave blank and the rule doesn’t examine pay codes when determining ineligible time.
Paycategories Eligible that count as work The pay categories that mark eligible worked time. When the rule examines whether employees worked their scheduled shift after a premium, it looks for time with one of the selected pay categories. Leave blank and the rule doesn’t examine pay categories when examining if scheduled shifts were worked.
Paycategories Ineligible that do not count as work The pay categories that mark ineligible worked time. When the rule examines whether employees worked their scheduled shift after a premium, time with one of the select pay categories doesn’t count as work. Leave blank and the rule doesn’t examine pay categories when determining ineligible time.
Paycodes Eligible that count as TimeOff The pay codes that mark appropriate time away, which excuse employees from working. When the rule examines whether employees worked their scheduled shift after a premium, it skips any days with appropriate time away. For example, if an employee was off on vacation the day after earning a holiday premium, and the vacation pay code was selected in this setting, the rule skips this day and checks the next day for a scheduled, worked shift. Leave blank and the rule doesn’t examine pay codes when determining time away.
Paycodes Ineligible that do not count as TimeOff The pay codes that mark ineligible worked time. When the rule examines whether employees worked their scheduled shift after a premium, time with one of the selected pay codes doesn’t count as work. Leave blank and the rule doesn’t examine pay codes when determining ineligible time.
Number of days to look back The number of days from today the rule looks back when checking for eligible premiums (specified in the Premium Paycode to look for setting). If the rule finds a premium within the number of days, then it examines the days following the eligible premium to determine if the employee worked their next scheduled shift. If the rule doesn’t find any eligible premiums within the specified number of days, it doesn’t run.

Example

Employees receive an 8-hour premium paid at their base rate on holidays, and those who work on the holiday receive this premium in addition to their regular pay for working the shift. If an employee doesn’t work their next scheduled shift, Dayforce must claw back this premium. Vacation time doesn’t count as a missed shift. To configure the rule for this example:

Settings and their configuration
Setting Action
Assign Premium Paycode Click HOL.
Premium Paycode to look for Click HOL.
Paycodes Eligible that count as TimeOff Select the pay codes used to mark vacation time.
Number of days to look back Enter 1.

An employee works 8 hours at their regular pay rate on a holiday, and also receives a holiday premium of $80 (8 hours multiplied by their $10 base rate). The employee then misses their scheduled shift the next day, causing Dayforce to claw back the $80 holiday premium:

Results of the example configuration.