TABLE OF CONTENTS

• OT Exclude
• Minimum Wage Type
• Regular Shift + Combined - How it Works
  • Step 1: Exclude OT-Excluded Rows
  • Step 2: Process All Rows Sequentially
  • Step 3: Apply Overtime/Double Time Rules Per Row
  • Step 4: Consider State Overtime/Double Day Rules
  • Important Clarification on Daily Overtime and Double Time Hours Allocation

In this article, we will focus on the configuration of overtime calculation using the regular shift type and combined (no PW hrs 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.

Regular Shift + Combined - How it Works

Step 1: Exclude OT-Excluded Rows

The system first excludes all payroll allocation rows marked with OT Exclude = Yes from the overtime and double time calculations.

Step 2: Process All Rows Sequentially

All remaining rows—both PW = Yes and PW = No with OT Exclude = No—are combined into a single list sorted in chronological order.

The system processes these rows sequentially, regardless of PW status. Overtime is triggered as soon as the cumulative total hours exceed the applicable State overtime limits.

Step 3: Apply Overtime/Double Time Rules Per Row

• The system iterates over each row in chronological order, summing the hours cumulatively.
• For each row, it checks whether the cumulative total exceeds the State’s Daily Overtime or Double Time thresholds.
• Once the overtime or double time limit is exceeded:
  • Hours beyond the limit are assigned as overtime or double time, respectively, to the row where the limit is first crossed.
  • Rows already designated with locked wage types such as "Overtime" or "Double" are respected and excluded from recalculations.

Step 4: Consider State Overtime/Double Day Rules

If the Payroll State specifies particular Overtime or Double Day rules, the system applies these uniformly within this combined process, assigning overtime or double time to rows based on the day the hours fall.

Important Clarification on Daily Overtime and Double Time Hours Allocation

Note that overtime and double time hours can only be assigned to rows for which the State's overtime (OT) limits are configured. For example, if daily OT limits are set up only for Prevailing Wage (PW) hours, then only PW rows can accrue OT or double time hours—even if a Time Card contains regular non-PW hours exceeding standard thresholds.

Consider this example where all rows are assigned to the same State (NA), which has OT limits configured only for PW hours (OT after 8 hours, double time after 12 hours):

Even though the total non-PW hours exceed 8 hours, no OT or double time is assigned to non-PW rows because OT limits apply only to PW rows in this State configuration. All OT and double time occur within the PW row hours.