The Daily Overtime Scheduled Based Rule is used to pay employees at a higher pay rate for any time worked beyond their scheduled hours on any given day. The rule takes into account multiple shifts on a single day. This higher pay rate can be a multiple of their regular rate, a set increase above their regular rate, or a fixed dollar per hour amount, regardless of their regular rate. It can be paid as a separate premium, in addition to their regular pay for the time, or as a blended rate, so that the worked time beyond the overtime threshold is paid at the multiplied or incremented rate. This behavior is controlled by the rule’s settings.
| Setting | Description |
|---|---|
| Pay Category to assign for overtime | Select which pay category under which daily overtime is paid. If left blank, the rule uses the same pay category as the segment of time on which the overtime was earned. 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. |
| Rate value for overtime | Enter the daily overtime rate – whether this is an incremental rate above the employee’s regular pay rate, or a multiplier rate like time and a half, depends on what value you select in the Rate type drop-down list. |
| Number of minutes required for double overtime | Enter the number of minutes an employee must work before they start earning double overtime. This is the double overtime threshold. Eligible work beyond this time is paid at a higher overtime rate. Leave blank and the rule doesn’t pay out double overtime. |
| Pay Category to assign for double overtime | Select which pay category double overtime is paid under. If left blank, the rule uses the same pay category as the segment of time that earned the overtime. |
| Rate value for double overtime | Enter the double overtime rate – whether this is an incremental rate above the employee’s regular pay rate, or a multiplier rate like time and a half, depends on what value you select in the Rate type drop-down list. |
| Rate type |
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, 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. |
| Rate output |
Select how overtime is paid, either in separate premiums or by changing the pay rate of the time that earned the employee overtime:
|
| Pay Codes eligible | Select which pay codes mark eligible work. The rule only considers eligible work when it calculates if and how much overtime the employee earns. Leave blank and the rule doesn’t examine pay codes when determining eligible work. |
| Pay Codes not eligible | Select the pay codes that mark ineligible time. Pay details with one of the selected pay codes don't count towards the overtime threshold. Unpaid breaks and time off sick are common examples. Leave blank and the rule doesn’t examine pay codes when determining ineligible time. |
| Pay Categories eligible | Select which pay categories mark eligible work. The rule only considers eligible work when it calculates if and how much overtime the employee earns. Leave blank and the rule doesn’t examine pay categories when determining eligible work. |
| Pay Categories not eligible | Select which pay categories mark ineligible time. Pay details with one of the selected pay categories don't count towards the overtime threshold. Leave blank and the rule doesn’t examine pay categories when determining ineligible time. |
| Premiums contribute to overtime |
Select this checkbox to configure the rule so that premiums lower the overtime threshold. For example, an employee is scheduled to work from 9:00 AM to 5:00 PM, but clocks in at 1:00 PM and works until 6:00 PM and receives a premium for working offsite from 9:00 AM to 1:00 PM. With this checkbox selected, the employee would receive overtime for working an hour past their scheduled time because Dayforce would lower the overtime threshold by the four hours from their premium. Without this checkbox selected, the employee wouldn't be paid overtime. |
| Minimum worked minutes threshold |
Enter the number of minutes an employee must work during a day in order for the rule to examine it. When an employee doesn’t work beyond this threshold, the rule won't pay out overtime, even if the employee works more than they're scheduled to work. For example, if you enter 480 (8 hours) in this field and an employee scheduled to work 4 hours ends up working 6 hours, the rule won't pay out any overtime as the employee hasn't worked the minimum threshold. In this case, only employees who work more than 8 hours and more than their scheduled shift are paid overtime. |
| Pay Codes contributing to work threshold | Select which pay codes mark eligible work that counts toward the Minimum worked minutes threshold. Leave blank and the rule doesn’t examine pay codes when determining if an employee worked beyond the threshold. |
| Pay Codes not contributing to work threshold | Select which pay codes mark ineligible time that doesn’t count towards the Minimum worked minutes threshold. Leave blank and the rule doesn’t examine pay codes when marking time that doesn’t count towards the threshold. |
| Pay Categories contributing to work threshold | Select which pay categories mark eligible work that counts toward the Minimum worked minutes threshold. Leave blank and the rule doesn’t examine pay categories when determining if an employee worked beyond the threshold. |
| Pay Categories not contributing to work threshold | Select which pay categories mark ineligible time that doesn’t count towards the Minimum worked minutes threshold. Leave blank and the rule doesn’t examine pay categories when marking time that doesn’t count towards the threshold. |
| Premiums contribute to worked threshold |
Select this checkbox to configure the rule so that it includes premiums when calculating worked time for the Minimum worked minutes threshold. For example, the Minimum worked minutes threshold is set to five hours. An employee has worked four hours and has a premium of two hours. With this checkbox selected, the employee would qualify for overtime if they worked beyond their scheduled time, because their worked time exceeds the five-hour minimum when you include their premium in the calculation. Without this checkbox selected, the employee wouldn't be paid overtime (even if they worked beyond their scheduled time) as their worked time wouldn't meet the minimum defined in the Minimum worked minutes threshold field. |
| Exclude Meal Break from schedule time |
Select a value from the drop-down list to exclude meals, breaks or both from the overtime threshold the rule calculates. For example, an employee is scheduled to work six hours with one 30-minute meal. The rule calculates their schedule based on an overtime threshold of six hours, minus the 30 minute meal, so that the employee earns overtime for any time worked beyond 5.5 hours. Select one of the following values:
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| Shift trade statuses contributing to schedule time | Select the shift trade statuses that contribute to the overtime threshold. For example, if only shifts that were originally scheduled and not traded for are eligible, select Not Traded. |
| Shift trade statuses not contributing to schedule time | Select the shift trade statuses that don't contribute to the overtime threshold. For example, if swapped shifts shouldn't contribute to the threshold, select Swap. |
Daily Overtime Scheduled Based Rule Example
Employees are scheduled to shift times, but are sometimes required to stay later when there is more work available. These additional, unscheduled hours are paid as overtime. Further, if employees work more than ten hours in a day, a double overtime rate of twice the employee’s regular pay rate is paid.
Example: Configuration
To configure the rule for this example:
- In the Pay Category to assign for overtime drop-down list, click Daily OT.
- Enter 1.5 in the Rate value for overtime field.
- Enter 600 in the Number of minutes required for double overtime field.
- In the Pay Category to assign for double overtime drop-down list, click Weekly DT.
- Enter 2 in the Rate value for double overtime field.
- In the Rate type drop-down list, click Multiplier.
- In the Rate output drop-down list, click BlendedRate.
- Enter 60 in the Minimum worked minutes threshold field.
Example Results
An employee is scheduled to work from 9:00 AM to 5:00 PM from Monday to Thursday in a given week. However, they stay late on Monday, Tuesday, and Thursday, for a total of 3.5 hours of unscheduled time. When the rule runs, these hours are paid out as overtime.