You can use this rule to define two sets of pay codes or pay categories so that you can subtract the first set from the second set. For example, Nevada has a state-wide legal requirement to offer daily overtime to certain employees who make less than a specified amount of wages. If an employee qualifies for and earns any daily overtime, those daily overtime amounts might be deducted from weekly overtime (assuming the employee earned any weekly overtime for the week in question). You would use this rule with the Wage Qualifier for Nevada overtime compliance.
| Setting | Description |
|---|---|
| Rate output | Used to specify whether the rule calculates separate premiums or a blended rate for the discount. Each output uses different deduction calculations. The discount is applied according to the rule’s configuration. |
| Discount amount from: pay code | The pay code to discount from. |
| Discount amount from: pay category | The pay category to discount from. |
| Discount amount: pay codes eligible | The pay code used to determine the total amount to discount. |
| Discount amount: pay categories eligible | The pay category used to determine the total amount to discount. |
| Discount amount: pay codes not eligible | The pay codes that can’t be used to determine the total amount to discount. |
| Discount amount: pay categories not eligible | The pay categories that can’t be used to determine the total amount to discount. |
Example
Jeff is a Nevada employee who earns $8.00 an hour. His organization offers qualifying health benefits, so the minimum wage applicable to his organization is $7.25. Because his hourly rate is less than $10.875, he is eligible to earn daily overtime. He works 50 hours over the course of a workweek, including 10 weekly overtime hours and one daily overtime hour, and earns a $100 attendance bonus at the end of the week. Thus, Jeff’s pay for the week breaks down as follows using this functionality:
Regular Rate of Pay
[($8.00 hourly rate x 50 hours worked) + $100 bonus = $500] / 50 hours worked = $10.00
Daily Overtime
($10.00 regular rate x 1.5 OT multiplier = $15.00) x 1 daily OT hour worked = $15.00
Weekly Overtime
[($10.00 regular rate x 1.5 OT multiplier = $15.00) x 10 weekly OT hours worked = $150.00] - $15.00 daily overtime = $135.00
Total Pay
$400 straight time pay + $100 bonus + $15.00 daily overtime + $135.00 weekly overtime = $650.00