The Weekly Premium For Worked Hours Rule pays premiums on specific time, for employees who work beyond a weekly threshold. Although similar to the Weekly Overtime Rule, this rule examines two groups or types of time before paying out overtime.
First, the employee has to work beyond a weekly threshold for the rule to run. Similar to the weekly overtime threshold, you configure what pay codes and pay categories mark eligible work. Unlike the overtime rules, working beyond this threshold doesn’t mean the employee earns any extra pay. With the Weekly Premium For Worked Hours Rule, the extra pay (in the form of a premium) is paid for any eligible time that employees record during a week that they worked beyond the weekly threshold.
Typically, the eligible time that triggers the rule paying out a premium is different from the eligible work that must be met before the rule runs.
For example, eligible work which counts toward the weekly threshold is defined as any time with the WRK pay code. However, employees only earn premiums for working called-in shifts, which are recorded with the CALL pay code. If the weekly threshold is 50 hours of work, an employee that records 53 hours with the WRK pay code and another four hours with the CALL pay code earns premium time on four hours. The employee who records 60 hours with the WRK pay code but no time with the CALL pay code doesn’t earn any premiums, and neither does the employee who records 45 hours with the WRK pay code and 10 hours with the CALL pay code.
| Setting | Description |
|---|---|
| Premium Paycode Premium Paycategory |
The pay code and pay category that the rule assigns to any premiums it pays out. |
| Number of worked minutes required | Enter the number of minutes employees must work before the rule examines their workweek for eligible time. Regardless of the amount of time eligible for premiums the employee records during the week, the rule doesn’t pay out any premiums unless the employee worked the number of minutes specified in this field. |
| Number of worked minutes required for overtime |
The amount of premium or overtime pay the rule applies to the eligible time can be controlled or limited by using this field. For example, if employees need to record 40 hours with the WRK pay code to be eligible for the rule, and are then paid extra for time with the TRN pay code, the rule can be configured to limit how much of the eligible time, in this example, time with the TRN pay code, earns the extra pay. Specify the number of minutes the rule subtracts from the number of worked minutes to determine the maximum amount of premiums or overtime it pays out. For example, specify 2400 in the Number of worked minutes required, select WRK in the Pay codes contributing to Work Week Threshold field, and select TRN in the Pay codes eligible field. An employee records 45 hours with the WRK pay code and another 15 hours with the TRN pay code. As a result, the rule pays out a 15-hour premium as all 15 hours with the TRN pay code was eligible to earn the premium. To continue the example, with 2100 (or 35 hours) specified in the Number of minutes required for overtime field, the rule subtracts this value from the total number of workweek threshold minutes, in this case time with the WRK pay code, to determine the duration of premiums to pay out. Dayforce subtracts 35 hours from the 45 hours of workweek threshold time (time with the WRK pay code). The result is 10 hours. This sets the maximum amount of time that can earn the overtime or any premiums the rule pays out. As a result, Dayforce pays out a 10-hour premium, even though the employee worked 15 hours with the TRN pay code. |
| Pay codes contributing to Work Week Threshold | The pay codes that mark time that counts toward the threshold set in the Number of worked minutes required field. Leave blank and the rule doesn’t consider pay codes when determining which time counts toward the threshold. |
| Pay Codes not contributing to Work Week Threshold | The pay codes that mark time that doesn’t count toward the threshold set in the Number of worked minutes required field. Leave blank and the rules doesn’t consider pay codes when determining which time doesn’t count toward the threshold. |
| Pay Categories contributing to Work Week Threshold | The pay categories that mark time that counts toward the threshold set in the Number of worked minutes required field. Leave blank and the rule doesn’t consider pay categories when determining which time counts toward the threshold. |
| Pay Categories not contributing to Work Week Threshold | The pay categories that mark time that doesn’t count toward the threshold set in the Number of worked minutes required field. Leave blank and the rule doesn’t consider pay categories when determining which time doesn’t count toward the threshold. |
| Pay codes eligible | The pay codes that mark eligible time on which employees can earn premiums, provided they have worked the Number of worked minutes required during the week. Leave blank and the rule doesn’t consider pay codes when determining eligible time. |
| Pay Codes not eligible | The pay codes that mark ineligible time on which employees don’t earn premiums. Leave blank and the rule doesn’t consider pay codes when determining ineligible time. |
| Pay Categories eligible | The pay categories that mark eligible time on which employees can earn premiums, provided they have worked the Number of worked minutes required during the week. Leave blank and the rule doesn’t consider pay categories when determining eligible time. |
| Pay Categories not eligible | The pay categories mark ineligible time on which employees don’t earn premiums. Leave blank and the rule doesn’t consider pay categories when determining ineligible time. |
| Rate type |
Select Multiplier to configure the rule to pay employees a premium rate that is a multiple of their regular pay rate. To pay employees time and a half for eligible time that earned a premium, you’d select Multiplier and enter 1.5 in the Rate value field. Select Incremental to configure the rule to pay the employee a flat premium rate. To pay employees a $5 an hour premium for eligible time that earned a premium, regardless of their regular pay rate, you’d select Incremental. |
| Rate value | Enter the premium pay rate. Whether this is a flat pay rate or a multiplier rate like time and a half depends on what value you select in the Rate type drop-down list. |
Weekly Premium for Worked Hours Rule Example
Employees that work more than 20 hours in a week are eligible for a premium pay rate on their call-in shifts. Provided that they have already passed the 20-hour mark in the week, all call-in shifts are paid at a rate of $15 an hour.
Configuration
To configure the rule for this example:
- In the Premium Paycode drop-down list, select the appropriate pay code. In this example, WBonus is selected.
- In the Premium Paycategory drop-down list, select the appropriate pay category. In this example, Job Premium is selected.
- Enter 1200 in the Number of worked minutes required field.
- In the Pay codes contributing to Work Week Threshold setting, click Work.
- In the Pay codes eligible setting, click Call In.
- In the Rate type drop-down list, click Incremental.
- Enter 15 in the Rate value field.
Results
An employee works three shifts, on Wednesday, Thursday, and Friday, at their regular rate. The employee is called in for two call in shifts on Saturday and Sunday of the same week. The first three shifts put them over the 20-hour minimum worked hours limit, so the hours on the weekend are paid out at the premium rate:
The pay premiums are paid out at a rate of $15 per hour, with the pay code WBonus and the pay category Job Premium:
