TABLE OF CONTENTS

• What is given in the examples
  • Example 1
  • Example 2

For general information on overtime and double time in a Time Card, see the articles:

• State card: overtime and double time rules for a state ➡️ link
• Employee OT rules set in a TK configuration ➡️  link
• Cost Type OT Exclude settings ➡️link
• The rules for calculating the overtime and double time in a Time Card: OT exclude, minimum wage type, locked wage type, PW OT, etc. ➡️ link

What is given in the examples

Let's say the OT and Double Time rules are as follows:

• No employee-specific OT rules.
• No OT exclusion rules for cost types other than PTO, Sick, etc.
• No rules for minimum wage type set in Work Order types.
• Employee has worked 7 days. 
• Start of the week is Sunday.
• No overtime hours to carry over from last week to this week in the example.
• No PW (prevailing wage) hours.
• No overnight shift work.
• No locked wage type.
• States where employee has worked: CA, AZ, NV.

State OT/Double Time rules:

When the system calculates weekly overtime, it takes Time Cards for the week, starting from the beginning of the week. It takes the data from the payroll allocation table and creates a list.

Since in our example there are no PW hours, no locked wage type and no other OT exclusion rules, the generated list of data looks like this:

The list format is very convenient for calculating overtime hours, as the system sums up the rows in order and checks the resulting amounts for OT/double time limits each time.

Example 1

An employee worked 7 days and over 40 hours and over 8 hours on the 7th day where:

• 1st day of the week starts with less than 8 hours in CA and ends with more than 4 hours in Arizona (total day is over 12 hours).
• 2nd day of the week starts with 10 hours in Nevada and ends with more than 2 hours in CA.
• Day on which they cross 40 hours is over 12 hrs and starts in CA and ends in Arizona.
• 7th day of work is in Arizona.

So let's go through the list and calculate the OT and double time hours.

1st day — Sunday

The CA state has a double time rule. So the first thing the system does is checking for a double time.

5+1=6 hours. No double time is here, start to check the OT from row to row.

No OT limits (daily, weekly) are reached here. So the system goes to the next day.

2nd day — Monday

The 5th row is assigned to the NV state. The row exceeds the regular hours limit: so 9.5 hours are allocated as 8 regular hours and 1.5 OT hours.

The 6th row is also NV, as the limit of 8 regular hours has already been exceeded, these 0.5 hours are also OT.

The 7th and 8th rows are hours allocated to the CA state, where there is a double time rule.

Double time check: 5th  + 6th  + 7th  + 8th rows = 9.5+0.5+0.5+2 = 12.5 hours.

12.5 hours is more than the allotted overtime hours in the CA state: 12.5 - 12 = 0.5 hours as double time

As there is a double time for rows assigned to the CA state, and CA has the same daily OT rule as NV, the remaining hours in the 7th and 8th rows are overtime hours.

Total of regular hours from Sunday to Monday =  13 hrs + 8 hrs = 21 hrs. It's less than 40 hrs → no weekly OT.

3rd day — Tuesday

All hours are assigned to the CA state and no limits are reached here.

Total daily hours 6.

Total of regular hours from Sunday to Tuesday = 27 hours.

4th day —  Wednesday

All hours are assigned to the AZ state and no limits are reached here.

Total daily hours 4.

Total of regular hours from Sunday to Wednesday = 31 hours.

5th day — Thursday 

All hours are assigned to the AZ state and no limits are reached here.

Total daily hours 4.

Total of regular hours from Sunday to Thursday = 35 hours.

6th day — Friday

The 15th and 16th rows are assigned to the CA state.

4+3 = 7 hours, which is less than the OT and double time rules.

The 17th row for hours worked in AZ also doesn't exceed the rules.

Checking the weekly OT hours, adding up row by row:

Total of regular hours from Sunday to Thursday = 35 hours.

35+4 = 39 hours, less than the 40 hours laid down for CA.

39+3 = 42 hours, the weekly limit for the CA State is reached. So, 3 hours in the 16th row are allocated as 1 regular hour and 2 OT hour.

Hours in the 17th row is assigned to AZ. For this state, the weekly limit of regular hours is similar to the CA state.  As there are already 40 regular hours, the remaining 6 hours are all OT.

7th day — Saturday

The weekly OT rule is 40 hours in the AZ state. The total of regular hours already exceeded this value on Friday. There is also no daily double time rule for AZ. So the remaining hours are all OT. 

Total: 40 regular hours, 21 overtime hours and 0.5 double time hours.

Example 2

An employee worked 7 days over 40 hours and over 8 hours on the 7th day where:

• 1st day of the week starts with less than 8 hours in Arizona and ends with more than 4 hours in CA (total day is over 12 hours).
• 2nd day of the week starts with 10 hrs in CA and ends with over 2 hrs in NV.
• Day on which they cross 40 hours is over 12 hrs and starts in Arizona and ends in CA.
• 7th day of work is in CA and is over 8 hrs.

1st day — Sunday

Add up the hours from the first row: 5+1+1+6 = 13 hours, which is more than the double time rule for CA. 

So 13-12 = 1 hour double time.

Go back to the calculation of OT and add up row by row:

5+1 = 6 total hours for AZ, no limits are reached.

The next row is for CA, we know there are already hours of double time, so we have to calculate OT.

We currently have regular hours : 5+1+1 = 7 hours. To reach the 8 regular daily hours allowed, we need 1 more hour, which we'll take from the 4th row. The remaining hours are 4 OT hours.

2nd day — Monday

The 5th and 6th rows are assigned to the CA state, where there is a double time rule. 

Double time check: 5th  + 6th rows = 9.5+0.5 = 10 hours. No double time is reached.

Calculate OT: 

The 5th row exceeds the regular hours limit: so 9.5 hours are allocated as 8 regular hours and 1.5 OT hours.

The 6th row is also CA, as the limit of 8 regular hours has already been exceeded, these 0.5 hours are also OT.

The 7th and 8th rows are hours allocated to the NV state, where there is no double time rule, but an OT rule of 8 regular hours per day.

As 8 regular hours have already been accumulated, the remaining hours in the 7th and 8th lines are OT.

Total of regular hours from Sunday to Monday =  8 hrs + 8 hrs = 16 hrs. It's less than 40 hrs → no weekly OT.

3rd day — Tuesday

All hours are assigned to the CA state and no limits are reached here.

Total daily hours 6.

Total of regular hours from Sunday to Tuesday = 22 hours.

4th day —  Wednesday

All hours are assigned to the AZ state and no limits are reached here.

Total daily hours 4.

Total of regular hours from Sunday to Wednesday = 26 hours.

5th day — Thursday 

All hours are assigned to the AZ state and no limits are reached here.

Total daily hours 4.

Total of regular hours from Sunday to Thursday = 33 hours.

6th day — Friday

Add up the hours: 4+3+6 = 13 hours, which is more than the double time rule for CA. 

So 13-12 = 1 hour double time.

Go back to the calculation of OT and add up row by row:

The 15th and 16th rows are assigned to the AZ state. 

4+3 = 7 hours, which is less than the OT rule.

The 17th row is for CA, we know there are already hours of double time, so we have to calculate OT.

We currently have regular hours: 4+3 = 7 hours. To get to the 8 regular hours we're allowed, we need 1 more hour, which we could take from the 17th row. But by the 17th row, the total of regular hours is 40 hours: 

• Total of regular hours from Sunday to Thursday = 33 hours.
• 33+4+3 = 40 hours.

So the remaining 5 hours are OT.

7th day — Saturday

All hours are assigned to the CA state, and this is the 7th day of continuous work.

So there are two rules here:

• Total Work Days OT — 6 days 
• Total Work Days Double — 8 hours

Add up the hours: 5+1+3 = 9 hours, which is more than Total Work Days Double.

So 9-8 = 1 hour double time.

The remaining hours are all overtime hours.

Total: 40 regular hours, 21.5 overtime hours and 3 double time hours.