Weekly Overtime Rule

Configures the rule to use the number of hours specified in the Normal Weekly Hours field of an employee’s records in People as the overtime threshold when determining if an employee earned weekly overtime.

Select this checkbox and Dayforce uses the value specified Normal Weekly Hours field instead of any value specified in the Number of minutes required for overtime field.

This allows the rule to pay weekly overtime for varying, employee-specific number of hours worked instead of paying out weekly overtime for each employee after the same threshold.

For example, a part-time employee’s Normal Weekly Hours field is set to 25 in People, and a full-time employee’s is set to 40. With the Use normal weekly hours as overtime threshold checkbox selected, the rule pays the part-time employee weekly overtime after working more than 25 hours in a week and the full-time employee for working more than 40.

Note: The rule uses an employee’s Normal Weekly Hours value if the Number of minutes required for overtime is left blank in the rule’s configuration. The reverse is true as well. The employee doesn’t have a Normal Weekly Hours value on their employee records, Dayforce uses the value specified in the Number of minutes required for overtime setting. If both the setting and the field in People are blank, the rule doesn’t apply.

Select this checkbox to spread the overtime threshold over the configured pay group frequency. For example, when this checkbox is selected and a pay group uses a bi-weekly pay group frequency, the rule generates an overtime premium when the overtime threshold entered in the Number of minutes required for overtime field is met anytime during the two-week period. The overtime premium is calculated for the rest of the hours after the threshold.

Note that for a bi-weekly pay group frequency, you need to enter double the amount of overtime threshold in the Number of minutes required for overtime field as this setting targets a weekly overtime threshold. For example, if you want overtime to be granted after 40 hours in a two-week period, you would enter 80 in the Number of minutes required for overtime field and then select the Compute based on pay group calculation frequency period checkbox.

Enter the number of minutes the employee must work to receive double overtime. This setting is used to base an employee’s weekly overtime on a dynamic threshold that varies by the number of days worked in the current week. When a value is entered in this field, the value in the Number of minutes required for double overtime field is ignored and the weekly threshold for double overtime is determined as follows:

• An employee who has reached the weekly overtime threshold in the current week will be paid the standard overtime rate up to the value in the Daily overtime minutes required for double overtime setting, multiplied by the number of days worked in the week-to-date, after which the employee is paid the double overtime rate for time worked above that threshold.

The following examples assume that the weekly overtime threshold is set to 2280 minutes (38 hours), and the new daily double overtime threshold is set to 180 minutes (3 hours).

• An employee works a total of 54 hours in one week. They work 38 hours over Monday, Tuesday, and Wednesday. Then they work for 16 hours on Thursday. As such, the employee is paid at their regular rate for the 38 hours worked from Monday to Wednesday. Then, they're paid at a rate of 1.5x for 12 hours (3 hours x 4 days) and then at a rate of 2.0x for the remaining 4 hours worked.

Notes:

• Only weekdays can potentially be counted as worked days for the purpose of determining weekly threshold for double overtime.
• A weekday with any clock entries, with an eligible pay code, will be counted as a worked day. The pay code and pay category calculated by the pay rules for the associated pay segment have no effect on its eligibility.
• Statutory holidays that take place during weekdays count as worked days if the associated pay code of any holiday premium is eligible and the Premiums contribute to overtime checkbox is selected. Also, the Calculate holiday hours as discount code checkbox must be selected in the Holiday Rule for the Weekly Overtime Rule to properly count the holidays as worked days.

Do one of the following, depending on how the overtime rate should be calculated:

• Select Multiplier to configure the rule to pay employees a weekly overtime rate that is a multiple of their regular pay rate.
• For example, to pay employees time and a half for weekly overtime, 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 weekly 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 for overtime field, and select Blended Rate in the Rate output drop-down list.
• To pay employees $17.50 for weekly overtime, regardless of their regular rate, select Incremental, enter 17.50 in the Rate value for overtime field, and select Separate Premium in the Rate output drop-down list.
• Select AddFractionOfMinimumWage to calculate an employee’s overtime rate using the minimum wage for their region, instead of the pay rate for their shift. This functionality is designed for use with tips where the segments are paid at a “cash wage” lower than the minimum wage, but where the overtime portion needs to be paid based on the minimum wage.
• When selected, Dayforce calculates the employee’s overtime rate by multiplying the value in the appropriate Rate Value field by the minimum wage for the employee’s region. When the rule is configured to pay overtime as a blended rate, Dayforce then adds that to the employee’s pay rate for that segment.
• Note: Using a blended rate to pay time-and-a-half requires a multiplier of 1.5. For separate premiums you use a multiplier of 0.5. However, when using the AddFractionOfMinimumWage option to pay “time at a cash rate plus half at minimum wage” you must use 0.5 regardless of whether you are paying employees using separate premiums or blended rate.
• For example, to pay an employee time and a half for overtime with this configuration, the time is paid at their regular rate for that pay segment, but the "and a half" is paid based on the minimum wage. This means that to pay an employee at a 1.5x OT rate, users would enter 0.5 in the Rate Value field instead of 1.5. Consider a simplified example where an employee is paid at a rate of $2, and the minimum wage is $8. With 0.5 in the Rate Value field, Dayforce pays the employee at $6 per hour for blended rate overtime (that is, 2+[8*0.5]).
• Note: This functionality is intended for use with tips where the segments are paid at a cash wage (usually defined in the job or base rate) lower than the minimum wage.
• Select HybridMultiplierOrMinimumWage to configure the rule to pay overtime using both the multiplier and minimum wage rate types for different jobs. For example, when an employee works in a tipped job assignment, you can pay overtime at their regular rate plus half of the current minimum wage. But, when the employee works a non-tipped job assignment, you can pay overtime at 1.5 times their normal rate.
• When selected, Dayforce calculates the employee’s overtime as follows:
• If SeparatePremium is selected in the Rate output field, the new premium is paid at (multiplier*minimum wage) if the current rate of the segment is below the minimum wage. Otherwise, it’s paid at (multiplier*current segment rate).
• If BlendedRate is selected in the Rate output field, the segment is paid at (current segment rate + (multiplier - 1) *minimum wage) if the current rate of the segment is below the minimum wage. Otherwise, it’s paid at (multiplier*current segment rate).
• The following example uses the separate premium rate output and a minimum wage of $7.25:
• Consider an employee who works the following jobs:
• Cook - $11.00 per hour
• Server - $4.50 per hour
• The employee earns overtime after eight hours of work a day. On Monday, the employee works 10 hours as a Cook. The employee’s regular pay is $110.00 (10 x $11.00) and overtime pay is $11.00 (0.5 x 2 x 11). On Tuesday, the employee works 10 hours as a server. The employee’s regular pay is $45.00 (10 x $4.50) and overtime pay is $7.25 (0.5 x 2 x 7.25).

Note: Administrators can apply dynamic reallocation rules in conjunction with overtime rules that use the HybridMultiplierOrMinimumWage rate type.

Select how overtime is paid, either in separate premiums or by changing the pay rate of the time that earned the employee overtime.

Select Blended Rate to pay overtime by increasing the pay rate of eligible work beyond the weekly overtime threshold. This is the typical configuration, where overtime is paid at time and a half.

Select Separate Premium to pay employees separate premiums for their overtime. If an employee earns weekly overtime after 40 hours, and works 41 hours, they're paid for 41 hours at their regular rate and also paid an overtime premium for 1 hour. The premium is paid according to the Rate type setting, either at a multiple of their pay rate or a fixed dollar amount.

Select this checkbox to configure the rule to adjust employee’s salary rate by the amount specified in the Rate value for overtime or Rate value for double overtime fields. For example, if a salaried employee’s rate breaks down to $15 an hour, and they earn 1.5 overtime, the rule pays out an overtime rate of $22.50.

Note: The rule obtains an employee’s salary from the Annual Salary field in the Employment > Employment Settings screen in People.

Leave blank and the rule doesn’t use the employee’s salary to determine overtime rates.

Select this checkbox to configure the rule to pay out weekly overtime using the value in the employee’s Average OT Rate field, instead of rate values set in the rule. Leave blank and the rule doesn’t use the employee’s Average OT Rate.

Note:  If selected, the rule won’t pay out overtime unless the employee has a value in the Overtime Rate field in the Employment > Employment Settings screen in People.

Select this checkbox and Dayforce allocates the regular shift premiums first, and then allocates the overtime premiums on the shift premiums at the end of the shift (that is, rather than at the start of the shift). When this checkbox is cleared, Dayforce allocates overtime premiums on regular shift premiums at the start of the shift. By default, this checkbox isn’t selected.

This setting is effective only when the Premiums contribute to overtime checkbox is selected, because it applies only to overtime for premiums.

The pay adjustment codes that lower overtime thresholds. Typically, these pay adjustment codes represent time that count towards overtime thresholds, but shouldn’t be paid at an overtime rate, such as vacation time. Any time with one of the selected pay adjustment codes is deducted from the employee’s overtime threshold so that the employee earns overtime on eligible work sooner.

Consider the example where employees earn weekly overtime after 40 hours and vacation time was selected in the Pay Adjustment Codes to lower Threshold field. An employee has 10 hours of vacation and worked 35 hours of eligible time during one week. Although the employee worked for only 35 hours (less than the 40-hour overtime threshold), the rule still pays out five hours of overtime because the 10 hours of vacation time is deducted from this threshold.

Note: The rule doesn’t pay out any overtime if an employee doesn’t work any eligible time, regardless of the amount of time recorded with one of the selected pay adjustment codes. Also, the setting won’t work with time in the week on clock entries (including transfers, meals, and breaks within the clock entry).

Select the checkbox and Dayforce deducts clock entry times from the overtime threshold if the clock entry includes at least one of the pay adjustment codes specified in the Pay Adjustment Codes to lower Threshold setting. Meals and breaks are included in the total time deducted from the threshold. For example, if an employee creates a clock entry for a seven-hour shift, with a one-hour meal break, Dayforce deducts a total of eight hours from the overtime threshold.

This functionality is best used when both regular worked and sick time are logged on the duration timesheet, and overtime should be paid on the regular time only but with the overtime threshold discounted by the sick time. Because the duration timesheet saves this data as clock entries and transfers, this setting must be enabled to get this system operational.

When the checkbox is cleared, Dayforce doesn’t deduct clock entry times, even if they include the eligible pay adjustment codes.

Note: Because this functionality has to use the initial set of work details (to get a consistent discount amount throughout the week) the effect of rules, such as the Assign Pay Code Rule, that subsequently change the pay code won’t be accounted for.

Note: Instead of using the following settings to apply discounting, it’s recommended that you use the Discount Hours Rule. See Discount Hours Rule.

Select this checkbox to adjust the weekly overtime threshold to account for premiums paid out by other rules. Similar to the Discount holidays checkbox, when the Discount other items checkbox is selected, the employee’s weekly overtime threshold is lowered to account for premiums other rules pay out during the week.

Note: For the overtime threshold to be lowered by premiums paid out by other rules, you must also configure the rule that pays out the premium to calculate the premium as a discount code. Additionally, you must configure the Weekly Overtime Rule to run after the rule that pays out the premium.

Select this checkbox to convert prior pay segments identified by the daily overtime pay categories (as specified in Pay categories to convert at threshold) to the weekly overtime pay code.

This setting allows employees to be paid daily overtime at two different rates, depending on when overtime occurs. Employees who work more than eight hours in one day are paid daily overtime at a rate of 1.5. Employees who work more than 40 hours in one week are paid weekly overtime at a rate of 2.0 (that is, double time). However, if an employee works more than 40 hours in one week and also worked more than 8 hours in a day that week, their daily overtime is paid at double time (that is, their daily overtime rate for that week changes from 1.5 to 2.0).

When the Convert pay categories at threshold checkbox is selected, the Weekly Overtime Rule converts prior pay segments identified by the daily overtime pay categories (in Pay categories to convert at threshold) to the weekly overtime pay code, backing out the most recent overtime paid on these segments and replacing it with the rate from this current rule.

Select this checkbox to configure the rule so that the overtime rate for a holiday is paid only for the time worked on the holiday’s actual calendar date. This affects shifts that cross midnight.

For example, if an employee starts their shift on the holiday, then the holiday overtime rate will stop at midnight. If the employee starts their shift the day before the holiday, then the holiday overtime rate will start after midnight.

Important: For this setting to work properly, you must also select the Apply overtime by holiday calendar date checkbox in the Holiday Rule.

Select this checkbox and the rule engine checks if an employee has multiple work assignments, and calculates their overtime premium using the minimum wage rate of the work assignment where the overtime hours were worked. This is useful for cases where employees have separate work assignments in two different states with differing minimum wage rates.

Note: This setting is applicable only if you selected AddFractionOfMinimumWage or HybridMultiplierOrMinimumWage in the Rate type drop-down list.

This setting requires the Number of minutes required for weekly overtime and the Pay Category to assign for weekly overtime fields to be configured to generate pay summaries. When selected, a premium entry is generated for pay summaries that exceed the Number of minutes required for weekly overtime threshold.

The eligible weekly overtime values are mapped to the OT 0.5 Memo pay code and category when these settings are configured as follows:

• Weekly overtime memo multiplier: 0.5
• Pay code to assign weekly overtime memo: OT 0.5 Memo
• Pay category to assign weekly overtime memo: OT 0.5 Memo

The multiplier rate for the premium portion of weekly overtime. Configured as 0.5 by default.

The pay code that is assigned to the generated weekly overtime. The OT 0.5 Memo pay code is selected by default.