Daily Overtime Rule

Select which pay category daily overtime is paid under. If left blank, the application doesn't compute an overtime rate with the rule. This setting can be left blank when the user wants to include only double overtime and has made a selection in the Pay Category to assign for double overtime setting.

Paying overtime under a specific pay category is useful for record purposes, so that managers can see a distinction between regular pay and overtime. It's also useful to mark overtime for other payroll rules that exclude or shouldn't impact overtime.

Do one of the following, depending on how the overtime rate should be calculated:

• Select Multiplier to configure the rule to pay employees a daily overtime rate that is a multiple of their regular pay rate. To pay employees time and a half for daily overtime, select Multiplier and enter 1.5 in the Rate value field.
• Select Incremental to configure the rule to either add a dollar amount to the pay rate when paying daily overtime or pay the employee a flat overtime rate.
• To pay employees an additional $5 for overtime, you would select Incremental, enter 5 in the Rate value field, and select Blended Rate in the Rate output drop-down list.
• To pay employees $17.50 for daily overtime, regardless of their regular rate, select Incremental, enter 17.50 in the Rate value for daily overtime field, and select Separate Premium in the Rate output drop-down list.
• Select AddFractionOfMinimumWage to calculate an employee’s overtime rate using the minimum wage for their region, instead of the pay rate for their shift. This functionality is designed for use with tips where the segments are paid at a “cash wage” lower than the minimum wage, but where the overtime portion needs to be paid based on the minimum wage.
• When selected, Dayforce calculates the employee’s overtime rate by multiplying the value in the appropriate Rate Value field by the minimum wage for the employee’s region. When the rule is configured to pay overtime as a blended rate, Dayforce then adds that to the employee’s pay rate for that segment.
• OT Hourly Rate = (Minimum Wage x 1.5) - (Minimum Wage - Job Rate)
• Note: Using a blended rate to pay time-and-a-half requires a multiplier of “1.5.” For separate premiums you use a multiplier of 0.5. However, when using the AddFractionOfMinimumWage option to pay “time at a cash rate plus half at minimum wage” you must use 0.5 regardless of whether you're paying employees using separate premiums or blended rate.
• For example, to pay an employee time and a half for overtime with this configuration, the time is paid at their regular rate for that pay segment, but the “and a half” segment is paid based on the minimum wage. This means that to pay an employee at a 1.5x OT rate, users would enter 0.5 in the Rate Value field instead of 1.5. Consider a simplified example where an employee is paid at a rate of $2, and the minimum wage is $8. With 0.5 in the Rate Value field, Dayforce pays the employee at $6 per hour for “blended rate” overtime (that is, (8 x 1.5) - (8 - 2)).
• Note: This functionality is intended for use with tips where the segments are paid at a “cash wage” (usually defined in the job or base rate) lower than the minimum wage.
• Select HybridMultiplierOrMinimumWage to configure the rule to pay overtime using both the multiplier and minimum wage rate types for different jobs. For example, when an employee works in a tipped job assignment, you can pay overtime at their regular rate plus half of the current minimum wage. But, when the employee works a non-tipped job assignment, you can pay overtime at 1.5 times their normal rate.
• When selected, Dayforce calculates the employee’s overtime as follows:
• • If SeparatePremium is selected in the Rate output drop-down list, the new premium is paid at (multiplier*minimum wage) if the current rate of the segment is below the minimum wage and is paid at (multiplier*current segment rate) otherwise.
  • If BlendedRate is selected in the Rate output drop-down list, the segment is paid at (current segment rate + (multiplier - 1) *minimum wage) if the current rate of the segment is below the minimum wage and is paid at (multiplier*current segment rate) otherwise.
• The following example uses the Separate Premium rate output and a minimum wage of $7.25:
• Consider an employee who works the following jobs:
• Cook - $11.00 per hour
• Server - $4.50 per hour
• The employee earns overtime after 8 hours of work a day. On Monday, the employee works 10 hours as a Cook. The employee’s regular pay is $110.00 (10 x $11.00) and overtime pay is $11.00 (0.5 x 2 x 11). On Tuesday, the employee works 10 hours as a server. The employee’s regular pay is $45.00 (10 x $4.50) and overtime pay is $7.25 (0.5 x 2 x 7.25).
• Note: Administrators can apply dynamic reallocation rules in conjunction with overtime rules that use the HybridMultiplierOrMinimumWage rate type.

Select how overtime is paid, either in separate premiums or by changing the pay rate of the time that earned the employee overtime:

• BlendedRate: Pay overtime by increasing the pay rate of eligible work beyond the daily overtime threshold. This is the typical configuration, where overtime is paid at time and a half.
• Separate Premium: Pay employees separate premiums for their overtime. If an employee earns daily overtime after eight hours, and works nine hours, they're paid for nine hours at their regular rate and also paid an overtime premium for one hour. The premium is paid according to the Rate Type field, either at a multiple of their pay rate or a fixed dollar amount.

Use these settings to define the set of work details that are to be excluded from the calculation of rolling overtime. For example, if there is a “Late-in” pay segment at the start of a shift, the rolling period might be expected to start from the actual time the employee came in, and thus the “Late-in” item should be excluded using these fields.

Unlike most sets of eligibility criteria, if no items are selected for any of these four settings then no items are excluded from consideration. Instead, all items are considered by the rule when determining the start time of a rolling day.

Specify how many rolling days in the week the employee works before they automatically begin to earn overtime (regardless of how many hours they’ve worked each day). For example, if this is set to 6 as soon as the employee works their 6th or higher rolling day in the week, they’re automatically eligible to be paid overtime.

For example, in one organization, employees are entitled to overtime pay when they work during five or more 24-hour periods in a single workweek. Using this field, you can configure the pay rule to use a 24-hour period, determined by the time the employee clocks in at the start of the week, but which can be “reset” if the employee has a lag of more than 24 hours between clock-in times.

Select this checkbox and Dayforce allocates the regular shift premiums first, and then allocates the overtime premiums on the shift premiums at the end of the shift (that is, rather than at the start of the shift). When this checkbox is cleared, Dayforce allocates overtime premiums on regular shift premiums at the start of the shift. By default, this checkbox isn’t selected.

This checkbox is effective only when the Premiums contribute to overtime checkbox is selected, as it applies only to overtime for premiums.

If only worked time with a pay rate that is within a specified range of pay should earn daily overtime and contribute to daily overtime thresholds, specify the uppermost value of the range. For example, if employees only earn daily overtime on time worked for a rate of $17 or less, enter 17 in the field.

With rates specified in both the Rate greater or equal to and Rate less than fields, only time that is paid at a pay rate within the specified range earns overtime and contributes to the overtime threshold defined in the Number of minutes required for overtime field.

For example, employees earn overtime after working eight hours. 10 is specified in the Rate greater or equal to field and 17.50 in the Rate less than field. An employee works two jobs, a clerk job that pays $12.50 an hour and a team lead job that pays $20 an hour, and on Monday works five hours in the clerk job assignment and four hours in the team lead job assignment. Although the employee worked for nine hours during the day, the four hours the employee worked as a team lead was paid at $20 an hour, which is higher than the $17.50 an hour maximum set by the Rate less than field. As a result, the employee only worked five hours of eligible time and doesn’t earn any overtime on Monday.

The next day, the employee works another nine hour day. For the entire shift, the employee worked the clerk job, earning $12.50 an hour. Because the pay rate for all nine hours was within the range specified by the Rate greater or equal to and Rate less than fields, all nine hours contribute to the overtime threshold and the employee earns one hour of overtime.

Select this checkbox and the rule uses a fixed 24-hour period for overtime, rather than basing daily overtime on the shift’s business date.

For example, employees are paid daily overtime after working eight hours. An employee works from 5:00 AM to 12:00 PM on Monday, and then again at 10:00 PM on Monday to 6:00 AM on Tuesday. By default, Dayforce pays overtime for the last seven hours of the second shift, even though it crosses into Tuesday.

Conversely, with the Use fixed 24 hours period checkbox selected, Dayforce pays overtime only for portions of the shift that fall within the fixed 24-hour period. You can configure the start time for the 24-hour period using the following two settings.