The Weekly Daily OT Make Up Rule pays employees overtime for working beyond daily thresholds based on their scheduled time or an average daily hours value from their HR records, as long as any absence or missed time is made up first. Overtime is paid out only after any absences during the week are made up. For example, say an employee earns four hours of overtime for working 12 hours on Wednesday, but was late for work by two hours on Monday. Instead of paying four hours of overtime, two hours are used to make up the absence on Monday, and the rule pays two hours of overtime on Wednesday.
The rule examines an entire week at a time when determining if there any absences to be made up before it pays out overtime.
On scheduled days, the rule’s overtime threshold is based on the employee’s scheduled duration. Therefore, a part-time employee scheduled to a four hour shift earns overtime for staying late, and working six hours, while a full-time employee scheduled to a full day needs to work more than eight hours to earn overtime.
On unscheduled days, the rule’s double-overtime threshold is based on the employee-specific Average Daily Hours value, set in the Employment > Employment Settings screen in People. Employees earn overtime whenever they work on an unscheduled day but any time beyond this amount on an unscheduled day is paid at double-overtime. For example, in an employee’s records the Average Daily Hours field is set to 6, and when that employee works seven hours on Saturday, an off day, the employee earns six hours of overtime and one hour of double-overtime.
When employees work on multiple unscheduled days throughout the week, the rule checks the total amount of time they worked on all unscheduled days, and pays double-overtime for any time within the week on any unscheduled day beyond their Average Daily Hours value. After the threshold is reached, any time beyond it worked on any unscheduled day during that week, even if it’s a different unscheduled day, is paid at double-time.
Continuing the example above, the employee works seven hours on Saturday and four hours on Sunday, both days off. The employee’s Average Daily Hours is set to 6 in People. When the rule examines the employee’s week, it finds 11 hours worked on unscheduled days. The first six, on Saturday, are paid at time and a half. The rest, one hour on Saturday, and all four hours on Sunday, are paid at double-time.
Hours worked on holidays are counted towards the minimum threshold for the week. The hours are paid out by default at the overtime rate, while any daily overtime earned on holidays is paid out at the double overtime rate. If employees aren’t scheduled to work on the holiday, the rule doesn’t reduce the minimum threshold of time that is required to meet the weekly minimum threshold. Employees must still work the full amount of time specified in the Work minutes threshold for the week field before the rule pays out daily overtime premiums. Hours worked on a holiday can contribute towards making up time to meet the minimum threshold, but the hours worked on regular days will count towards the total first, and only the double overtime hours earned on holidays count towards the threshold. The normal overtime hours earned by working on a holiday don’t count towards making up time towards the minimum threshold.
Pay premiums are also counted towards the weekly minimum threshold of time. For example, if an employee receives a vacation premium for eight hours during the week, the hours will count towards the minimum threshold of time that the employee must work before receiving daily overtime premiums.
| Setting | Description |
|---|---|
| Assign Paycode for Make up | The pay code that the rule assigns to made up time. If any absences during the week are made up by employees working longer than their scheduled time on another day, the rule assigns the selected pay code to the time. |
| Assign Paycategory for Make up | The pay category that the rule assigns to made up time. Typically, this would be a paid pay category, such as Reg. If any absences during the week are made up by employees working longer than their scheduled time on another day, the rule assigns the selected pay category to the time. |
| Work minutes threshold for the week | Enter the minimum number of minutes an employee must work during the week in order for the rule to be applied. If an employee doesn’t meet this minimum threshold, the rule doesn’t examine the week for time to be made up or apply any overtime. If the employee exceeds this threshold in one week, the employee receives overtime. |
| Pay Category to assign for overtime | The pay category that the rule assigns to any daily overtime employees earn, after absences in the week have been made up. |
| Rate value for overtime | Enter the 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 OT (Scheduled Days only) | Enter the number of minutes an employee must work in one scheduled day before they start earning double overtime. This is the double overtime threshold. Eligible work beyond this time is paid at a higher overtime rate. Whether this is an incremental rate or a multiplier depends on what value you selected in the Rate type drop-down list. |
| Pay Category to assign for double overtime | The pay category under which double overtime is paid. 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 an overtime rate that is a multiple of their regular pay rate. To pay employees time and a half for overtime, you would select Multiplier and enter 1.5 in the Rate value for overtime 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 for overtime 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, you would select Incremental, enter 17.50 in the Rate value for 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. Select BlendedRate to pay overtime by increasing the pay rate of eligible work that earned overtime. This is the typical configuration, where overtime is paid at time and a half. Select SeparatePremium to pay employees separate premiums for their overtime. If an employee is scheduled for six hours and works seven, earning one hour of overtime, they're paid for seven hours at their regular rate and also paid an overtime premium for one hour. The premium is paid according to the Rate type drop-down list, either at a multiple of their pay rate or a fixed dollar amount. |
| Pay codes eligible | The pay codes that 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 | The pay codes that mark ineligible time. Time with one of the selected pay codes doesn’t count towards the overtime threshold. Unpaid breaks are a common example. Leave blank and the rule doesn’t examine pay codes when marking ineligible time. |
| Pay Categories eligible | The pay categories that 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 | The pay categories that mark ineligible time. Time with one of the selected pay categories doesn’t count towards the overtime threshold. Leave blank and the rule doesn’t examine pay categories when marking ineligible time. |
| Exclude Meal Break from schedule time | Select whether meals, breaks, or both are excluded from the daily overtime threshold. For example, if an employee is scheduled to work for nine hours on a day, but is scheduled for a one hour meal break, the daily overtime threshold is reduced to eight hours of worked time, after which any additional hours worked can count towards making up any missed time, or if the minimum requirement is met, the employee is eligible to receive a daily overtime premium on the additional time worked. |
| Included Shift Trade Types |
Select which shift trade types to include when examining shifts. Note: As most scheduled shifts don’t have a shift trade type, it’s recommended that you instead specify which shift trade types to exclude using the Excluded Shift Trade Types setting. If you set the Included Shift Trade Types setting, the rule won’t examine most scheduled shifts. |
| Excluded Shift Trade Types |
Select which shift trade types to ignore when examining shifts. Leave blank and the rule doesn’t ignore time based on shift trade type. For example, an employee picks up an eight-hour shift from another employee, but arrives for this shift two hours late. During another scheduled shift, the same employee stays late by four hours. If the Excluded Shift Trade Types setting is set to exclude posted shifts from the rule’s calculations, the employee is paid four hours overtime for staying late during the scheduled shift. However, if the setting doesn’t exclude posted shifts, the employee is paid overtime only for two hours, because the additional two hours are used to cover the two hours of absence during the posted shift. |
Example
Employees receive overtime at time-and-a-half after working 45 hours in a week, and are paid double-time after working eight hours on a scheduled day. Any absences during the week should be made up before Dayforce pays out overtime.
To configure the rule for this example:
- Enter 2700 in the Work minutes threshold for the week field.
- Employees earn overtime after eight hours, so enter 480 in the Number of minutes required for double OT (Scheduled Days only) field.
- Overtime is paid out at time-and-a-half, so enter 1.5 in the Rate value for overtime field.
- Double overtime is paid at double-time, so enter 2 in the Rate value for double overtime field.
An employee works nine hours on a scheduled day. Earlier in the week, this same employee clocked out an hour early during a scheduled shift. Instead of paying out the hour as overtime, Dayforce pays out an hour of make up pay to cover the hour the employee missed earlier in the week.