The Overtime Premium Rule is used to pay employees a top-up premium for overtime based on other premiums they have earned during the week. For example, you could use this rule to pay overtime to employees who work on commission.
| Setting | Description |
|---|---|
| Number of days to look back | Enter the number of days the rule looks back. For example, enter 7 to configure the rule with a day qualifier so that it looks back one week and generates a premium on the last day of the week. |
| Overtime adjustment pay code Overtime adjustment pay category |
The pay code and pay category the rule assigns to any premiums it pays out. |
| Eligible premium pay codes Ineligible premium pay codes Eligible premium pay categories Ineligible premium pay categories |
The pay codes and pay categories that mark eligible and ineligible premiums. The rule includes only pay details with eligible pay codes and pay categories when calculating the amount from premiums. By default, the rule includes only amounts from pay adjustments and premiums. The rule ignores any pay amounts from employee work details. |
| Eligible overtime pay codes | The pay codes that mark eligible overtime. The rule includes only work details with these pay codes when calculating overtime. |
| Ineligible overtime pay codes | The pay codes that don’t mark eligible overtime. The rule excludes work details with these pay codes when calculating overtime. |
| Eligible overtime pay categories | The pay categories that mark eligible overtime. The rule includes only work details with these pay categories when calculating overtime. |
| Ineligible overtime pay categories | The pay categories that don’t mark eligible overtime. The rule excludes work details with these pay categories when calculating overtime. |
| Eligible regular pay codes Ineligible regular pay codes |
The pay codes that mark eligible or ineligible regular (that is, non-overtime) pay details. |
| Eligible regular pay categories Ineligible regular pay categories |
The pay categories that mark eligible or ineligible regular pay details. |
| Regular and overtime contribute to hours only | Select this checkbox and Dayforce includes only the durations associated with the eligible overtime and regular pay segments. |
| Check for minimum wage qualification |
With this checkbox selected, Dayforce compares the employee’s average pay adjustment rate (calculated by dividing the total dollar amount from premiums for the week by the total number of hours in the overtime and regular pay segments) to 1.5 times the employee’s minimum wage. If the regular rate of pay exceeds 1.5 times the minimum wage, the employee is considered exempt and the rule doesn’t award a premium. If the average premium rate is less than 1.5 times the employee’s minimum wage, a premium is paid at the calculated average adjustment rate for each hour of overtime worked in the week. Note: For the rule to calculate correctly, the Regular and overtime contribute to hours only checkbox must also be selected. |
|
When this checkbox is selected, Dayforce examines only the federal minimum wage to determine whether an employee is exempt. If a federal minimum wage hasn’t been configured, Dayforce considers the employee exempt and doesn’t award a premium, regardless of whether a state or city minimum wage is defined. Conversely, when this checkbox is cleared, Dayforce examines the state minimum wage. If a state minimum wage isn’t available, Dayforce examines the city minimum wage. If neither a state nor a city minimum wage have been defined, Dayforce examines the federal minimum wage. If none of the minimum wages have been defined, Dayforce considers the employee exempt and doesn’t award a premium. When this checkbox is selected, the rule performs the following calculation: Premium Amount / (Regular Hours + Overtime Hours) = Average Premium Rate IF Average Premium Rate < (Min. Wage * 1.5) THEN Eligible Overtime Hours * Average Premium Rate = OT Premium IF Average Premium Rate > (Min. Wage * 1.5) THEN No OT Premium Awarded |