The Monthly Overtime Rule awards overtime and double overtime based on the number of hours worked during a calendar month. By default, calendar months start on the first of the month and end on the last day of the month, however you can define a different start date.
| Setting | Description |
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| Threshold Calculation minutes |
Select how the rule calculates the monthly minutes required for the overtime threshold:
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Enter the number of minutes employees must work in a calendar month before they receive overtime. This field is required only if you select Fixed Number of Minutes as the threshold calculation method. |
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Select this checkbox to add the number of double overtime minutes to the regular overtime minutes when calculating the number of minutes employees must work in a calendar month before they receive double overtime. |
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Enter the number of minutes employees must work in a calendar month before they receive double overtime. |
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Select the schedule pay codes that are eligible and ineligible for the rule to consider when determining the work threshold. |
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Select the schedule pay categories that are eligible and ineligible for the rule to consider when determining the work threshold. Note: If you don’t specify any schedule pay codes or pay categories, the whole schedule is considered when determining the work threshold. |
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Select whether you want to exclude the meals, breaks, or both when calculating the schedule time needed to qualify for an overtime premium. |
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Select which shift trade statuses should be included and excluded when calculating the schedule time needed to qualify for an overtime premium:
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Select this checkbox to always use the work pattern net hours that contribute to the work threshold. |
| Prorate Threshold based on start/termination date of the employee |
Select this checkbox to prorate the overtime threshold based on the start or termination date of the employee. When selected, the rule calculates the threshold using one of the following methods depending on the scenario:
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| Pay Category to assign for overtime | In the drop-down list, select the pay categories used for overtime. |
| Rate value for overtime | Specify the rate for overtime. Whether this rate increments or multiplies the employee’s pay rate depends on the option selected in the Rate type drop-down list. For example, to pay overtime at time and a half, enter 1.5 in the Rate value for overtime field and select Multiplier in the Rate type drop-down list. |
| Pay Category to assign for double overtime | In the drop-down list, select the pay categories used for double overtime. |
| Rate value for double overtime | Specify the rate for double overtime. Whether this rate increments or multiplies the employee’s pay rate depends on the option selected in the Rate type drop-down list. |
| Apply employee average overtime rate | Select this checkbox to pay out overtime using the value from the Average OT Rate field on the employee’s record in People. |
| Rate type | Select whether overtime is paid as an incremented or a multiplied rate. |
| Rate output | Select whether overtime is paid as a blended rate or a separate premium. |
| Pay Codes eligible Pay Codes not eligible Pay Categories eligible Pay Categories not eligible |
Select which pay codes and pay categories are included or excluded when calculating overtime thresholds. |
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Note: Instead of using the following settings to apply discounting, it’s recommended that you use the Discount Hours Rule. See Discount Hours Rule. |
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| Discount other items | Select this checkbox to adjust the monthly overtime threshold to account for premiums paid out by other rules. When this checkbox is selected, the employee's monthly overtime threshold is lowered to account for premiums other rules pay out during the month. |
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Select the pay codes for any premiums that should and shouldn’t lower the monthly overtime threshold. |
| Pay adjustment codes to raise threshold Pay adjustment codes to lower threshold |
Select which pay adjustment codes raise or lower the overtime threshold. |
| Premiums contribute to overtime | Use this checkbox to specify whether Dayforce includes time associated with premiums when calculating time worked. |
| Start reference date | Select a date to specify the date on which a new monthly period begins. For example, if you select the first of the month, calendar months start on the first and end on the last day of every month. By selecting the 9th of the month, calendar months would start on the 9th and end on the 8th of the following month. Similarly, by selecting the 31st, calendar months would always start on the last day of a month. |