You can use the Payroll FLSA Overtime Adjustment Rule to calculate Fair Labor Standards Act (FLSA) overtime adjustments based on wage augments, such as bonuses and lump-sum payments, that are recorded as quick entries in US pay runs.
This functionality is designed to implement FLSA regulations that dictate that the overtime that employees earn is adjusted when they receive a non-discretionary bonus or lump-sum payment. FLSA overtime is calculated based on the actual time that an employee works and their earnings, including any bonuses or lump-sum payments.
See FLSA Overtime Adjustments.
Payroll FLSA Overtime Adjustment Rule Parameters
The Payroll FLSA Overtime Adjustment Rule generates an FLSA overtime adjustment when you add an eligible bonus or lump-sum entry for the employee in the Quick Entry or Checks tabs of Payroll.
The rule has the following parameters:
| Parameter | Description |
|---|---|
| Overtime adjustment earning | Select the earning for paying out the overtime adjustment. |
| Double overtime adjustment earning |
(Optional) Select the earning for paying out the double overtime adjustment. |
| Eligible FLSA adjustable earnings |
Select the earnings that represent wage augments or bonuses that trigger the rule to calculate whether an overtime adjustment is required and how much. The bonus or lump-sum earning codes that you select as eligible must have the FLSA Adjustable checkbox selected in the Earnings > General tab of Payroll Setup > Earnings and Deductions. |
|
Overtime rate multiplier |
Enter the rate at which overtime hours are paid out. For example, if employees earn time and a half for overtime, enter 1.5, and Dayforce automatically calculates the adjusted payments at 0.5. |
|
Double overtime rate multiplier |
Enter the rate at which double overtime hours are paid out. For example, if employees earn double time, enter 2, and Dayforce automatically calculates the adjusted payments at 1.0. |
| Overtime earnings eligible | Use these settings to select the earnings that mark overtime hours in an employee's pay records that are eligible to be adjusted by the rule. You need to identify one or more earnings or earning groupings as eligible or non-eligible. Otherwise Dayforce considers all of the employee's earnings as overtime. |
| Overtime earning groups eligible | |
| Overtime earnings ineligible | |
| Overtime earning groups ineligible | |
| Double time earnings eligible | Use these settings to select the earnings that mark double overtime hours in an employee's pay records that are eligible to be adjusted by the rule. You only need to update these settings if you are using the rule for double overtime. In this case, you need to identify one or more earnings or earning groupings as eligible or non-eligible. Otherwise Dayforce considers all of the employee's earnings as double overtime. |
| Double time earning groups eligible | |
| Double time earnings ineligible | |
|
Double time earning groups ineligible |
|
| Work earnings eligible |
Use these settings to select the earnings that mark hours worked in an employee's pay records. These hours are used in the FLSA overtime adjustment calculations to determine the increase in the employee's regular rate. If you don’t identify one or more earnings or earning groupings as eligible or non-eligible, Dayforce considers all of the employee's earnings as work earnings, including overtime. |
| Work earning groups eligible | |
| Work earnings ineligible | |
| Work earning groups ineligible | |
| Compute hours and rate for adjustment earning | Select this checkbox for the rule to record and display the hours and rate of the overtime adjustment on the earning statement. YTD totals for this adjustment on the earning statement only reflect hours paid out after selecting this checkbox and onward. |
| Include Premium Earnings Hours |
Select this checkbox to allow overtime earning codes with the Premium checkbox selected in the Earnings > General tab of Payroll Setup > Earnings and Deductions to be included in the overtime adjustment calculation. |
| Enable Work Week Proration |
Select this checkbox to enable overtime adjustment calculation on a week-by-week basis. See The Enable Work Week Proration Option. |