Payroll State overtime rules are defined within the States reference. For more detailed information, please refer to the article on State Overtime Laws.

Employee-specific overtime (OT) rules are configured in the Employee's TK Configuration.

To understand the Time Card payroll allocation table better, visit the article about Time Card.

Overtime Calculation Methods

There are two key system settings that determine how overtime hours are calculated:

1. Shift Type Calculation:

This setting controls whether overtime is calculated based on regular shifts or overnight shifts.

2. Prevailing Wage (PW) Hours Impact:

This setting governs how PW hours influence overtime calculations, with two possible approaches:

• PW Priority Method:

PW overtime and double time hours are calculated exclusively within PW hours first, applying PW overtime limits initially. 

• This approach is known as the "going backwards" logic. For example, if PW hours occur at the end of a workweek, they are summed first. Only after totaling the PW hours are the non-PW hours added to that sum to evaluate whether the weekly overtime limits have been exceeded. After processing PW hours, the system includes them when calculating overtime limits for non-PW hours.

• Combined Calculation Method:

PW hours do not receive priority. Instead, all rows (PW and non-PW) are processed sequentially. Overtime is triggered as soon as the cumulative hours reach the applicable State overtime limit.