TABLE OF CONTENTS

• Overnight Shift Hours
• Calculating Overtime and Double Hours for Overnight Shifts
  • Prevailing Wage (PW) Overtime and Double Day Limits
• Shifts that occur at the intersection of Weeks/Payroll Periods

This article is dedicated to the configuration of overtime calculation using the overnight 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.

Overnight Shift Hours

An Overnight Shift is defined as a work shift that begins on one calendar day and ends on the following day.

Overnight shift hours are categorized into three types:

• Evening Hours: Continuous worked hours starting from the last Clock In of the day until midnight (plus or minus one minute).
• Morning Hours: Continuous worked hours from midnight (plus or minus one minute) until the next Clock Out of the day.
• Empty (Daily): Indicates that the first Clock In and last Clock Out both occur on the same calendar day.

In simple terms, if an employee clocks in on one day, works through the nighttime, and clocks out the next day, the hours worked before midnight are counted as evening hours of the previous day, and hours worked after midnight are counted as morning hours of the next day.

Let's view at the example.

Calculating Overtime and Double Hours for Overnight Shifts

Overtime hours for overnight shifts are calculated by combining the evening and morning hours. This means summing the total evening hours from the previous day with the total morning hours from the current day — or the evening hours from the current day with the morning hours of the next day.

If the sum of evening or morning hours exceeds the state's regular hour limits, the excess is classified as overtime. Because an overnight shift spans two days (two Time Cards), both days can include overtime or double hours.

The logic for calculating overtime in overnight shift mode mirrors that of the regular mode. Instead of iterating row by row within a single Time Card, the system aggregates all related rows—both evening and morning—from the entire shift and processes them together.

For hours in a Time Card unrelated to the overnight shift, overtime is calculated using the standard regular mode rules.

Notably, combining evening and morning hours within a single Time Card does not affect the calculation of daily overtime or double hours for that card.

Prevailing Wage (PW) Overtime and Double Day Limits

A unique aspect of the shift mode is the handling of PW overtime and double time when Overtime and Double Day limits are set for a state.

1. If a shift starts on an Overtime day, all PW rows within that state for the entire shift are considered overtime.
2. Similarly, if the shift starts on a Double day, all PW rows for that shift are treated as double time.

Example:

If Saturday is the Overtime day and Sunday is the Double day (with no other override rules configured):

• A shift spanning Friday to Saturday counts as regular hours.
• A shift spanning Saturday to Sunday counts as overtime hours.
• A shift spanning Sunday to Monday counts as double hours.

Let's examine how evening hours from the previous day combine with morning hours from the current day to calculate overtime, using the overtime limits for Michigan and Wisconsin as illustrative examples. The actual limits should be configured in the States reference.

1. Get the work shift rows.

2. Sidestep OT Exclude = Yes rows.

3. Calculate overtime and double hours for the PW rows.

4. Take non-PW rows. Calculate double hours, then overtime for not-allocated rows.

Shifts that occur at the intersection of Weeks/Payroll Periods

There are some specific moments of calculation of overtime/double hours for work shifts that occur at the intersection of weeks or biweekly and monthly payroll periods.

Let's look at a few examples.

Overtime Hours/Double Hours calculation in TC