TABLE OF CONTENTS

• OT Exclude
• Minimum Wage Type
• Overtime/Double Daily hours calculation - Regular mode
  • How the Calculation Works
    • Step 2: Calculate Prevailing Wage (PW) Overtime and Double Hours
    • Step 3: Calculate Regular Overtime and Double Hours

In this article, we will focus on the configuration of overtime calculation using the regular shift type combined with the PW Priority method.

OT Exclude

The “OT Exclude” column in the Time Card payroll allocation table is calculated according to settings defined either at the Cost Type level, the State card, or the Employee’s TK Configuration card.

1. Employee OT Eligibility:

First, the system verifies if overtime is generally permitted for the employee by checking the OT Exclude setting on their TK Configuration card.

• If OT Exclude is set to Yes, no overtime rules apply to that employee's time cards. Consequently, all rows in their payroll allocation table will have "OT Exclude = Yes".

2. Row-Level OT Exclusion:

For each payroll allocation row, the system then assesses OT Exclude based on the associated Cost Type and State settings, assigning either Yes or No accordingly.

Rows marked as “OT Exclude = Yes” are excluded from all overtime calculations.

Minimum Wage Type

When the system has finished calculating the OT Exclude column, it jumps to the calculation wage type. 

There is a setting in the WO type to determine a minimum wage type that applies to the TC hours assigned to a WO of that type.

• Such payroll allocation rows in a Time Card are included in the calculation of daily/weekly OT and double time. 
• Therefore, if the minimum wage type is OT, the hours worked under the particular WO are OT.
• However, if the OT limits are set, then any increase above the limit will be double time.

Overtime/Double Daily hours calculation - Regular Shift

The regular shift mode calculates overtime hours within each calendar day. This mode applies regardless of any entries in the Overnight column of the Time Card payroll allocation table.

• Daily Overtime Hours: Any hours exceeding the daily regular hour threshold, as specified in the Daily Overtime (Hrs) field on the Payroll State card.
• Daily Double Hours: Hours exceeding the daily overtime limit, defined in the Double Time (Hrs) field on the Payroll State card.

For prevailing wage (PW) employees, you can set separate overtime and double time limits:

• Open the Payroll State card and navigate to the PW Overtime Laws tab to enter these limits.
• PW overtime and double time hours are calculated solely within PW hours.

How the Calculation Works

Once the OT Exclude markers are set, the system calculates overtime and double hours through the following sequence:

Step 1: Exclude OT-Excluded rows

• Rows flagged with OT Exclude = Yes are omitted from overtime calculations.

Step 2: Calculate Prevailing Wage (PW) Overtime and Double Hours

• Select all rows where PW = Yes and OT Exclude = No.
• These rows are moved to the top of the sort order within the payroll allocation table, which is arranged chronologically.
• The PW flag is derived either from the Cost Type (where “PW Allowed” is active) or manually set.
• For each PW row, the system checks the Payroll State’s Overtime/Double day rules:
  • If the current day matches the Overtime day, all PW hours for that day are treated as overtime.
  • If it matches the Double day, all hours are considered double time.
• If no specific Overtime/Double day rules exist, the system applies PW daily overtime and double time limits:
  • PW Double Hours:

The system sums PW hours across rows excluding those already assigned as double time (i.e., rows with "Locked Wage Type = Double"). Once the total exceeds the state’s PW double daily limit, all additional hours are categorized as double time, assigned to the row where the limit is first exceeded.

•  PW Regular and Overtime Hours:

Based on total PW hours, accounted double hours, and the state’s PW overtime limit, the system allocates hours as regular or overtime. Locked "Overtime" and "Regular" wage types are considered accordingly.

Step 3: Calculate Regular Overtime and Double Hours

• Select all rows where PW = No and OT Exclude = No.
• The system iterates through these rows chronologically to calculate overtime.
• Double time is calculated by summing all non-double hours (excluding rows with "Locked Wage Type = Double").
• If the total exceeds the state's Daily Double (Hrs) limit, hours beyond the limit are designated as double time, applied to the row where the limit is reached.
• With the total hours, double hours assigned, and the state’s overtime limit, the system calculates regular and overtime hours similarly, honoring locked "Overtime" and "Regular" wage types.
  

Read more about the overnight shift OT calculation method