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
• Example 2: Daily OT and Double Time Calculation
• Example 2: OT and Double Time Calculation Across Multiple States

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.

Example 1: Daily OT and Double Time Calculation

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

• No employee-specific OT rules.
• OT exclusion rules for cost type Meal Premium
• No rules for minimum wage type set in Work Order types.
• Employee has worked 1 day
• Start of the week is Sunday.
• No overtime hours to carry over from last week to this week in the example.
• Has PW (prevailing wage) hours.
• No overnight shift work.
• No locked wage type.
• States where employee has worked: CA

State OT/Double Time rules:

Daily OT and Double Time Calculation:

All rows in this example are assigned to the same State (CA), so California OT rules apply to each row except those flagged with OT Exclude = Yes.

• OT Exclude = Yes:

The first row (Meal Premium, 1 hour) is excluded from OT and double time calculations due to the OT Exclude setting; it is counted only as regular hours.

• Calculation Process:

Overtime (OT) and double time are calculated as hours are totaled sequentially, row by row, according to California’s limits (Daily OT = 8 hrs, Daily Double = 12 hrs).

Step-by-Step Calculation:

• Row 2 (Drive, 2 hours): Regular hours are summed.
• Row 3 (On Site, PW, 7 hours): Counting only non-excluded rows, regular hours accrue until reaching 8. The 7th hour brings the subtotal to 9; the first 6 hours are regular, with the 1 hour pushing the total over the OT limit and assigned as overtime.
• Row 4 (Drive, 0.5 hour): Adds to overtime, keeping within the OT bracket.
• Row 5 (Drive, 0.5 hour): Also counts as overtime.
• Row 6 (On Site, 4 hours): Total hours now exceed the Daily Double threshold (12 hours). The first 2 hours are assigned as overtime, while the last 2 hours become double time.

Example 2: OT and Double Time Calculation Across Multiple States

• No employee-specific OT rules.
• OT exclusion rules for cost type Meal Premium
• No rules for minimum wage type set in Work Order types.
• Employee has worked 1 day
• Start of the week is Sunday.
• No overtime hours to carry over from last week to this week in the example.
• Has PW (prevailing wage) hours.
• No overnight shift work.
• No locked wage type.
• States where employee has worked: CA, AZ

State OT/Double Time rules:

Daily OT and double Time Calculation:

In this case, payroll allocation rows are assigned to two different states — AZ (Arizona) and CA (California). Each state has its own overtime and double time rules as shown in the table.

• Arizona (AZ):
  • Has daily overtime (OT) and double time limits (8 hrs and 12 hrs), but does not specify Prevailing Wage (PW) OT or Double limits.
  • As a result, PW overtime cannot be assigned to AZ rows even when a row is marked as PW.
• California (CA):
  • Daily OT and double time limits are set for both standard and PW work.

Step-by-Step Calculation:

• Rows allocated to AZ:
  • Row 1 (Meal Premium, 1 hour): This row is flagged with OT Exclude = Yes, so this hour counts only as regular time and is excluded from overtime calculations.
  • Row 2 (Drive, 2 hours): These 2 hours are counted as regular hours initially since AZ’s daily OT limit is 8 hours and has not yet been exceeded.
  • Row 3 (On Site, PW, 7 hours): Although this row represents PW hours, AZ does not have PW OT limits configured. The system sums these 7 hours with the 2 regular hours from Row 2, totaling 9 hours—this exceeds AZ’s daily OT threshold of 8 hours.
    • Because the combined total surpasses the daily limit, 1 hour of overtime is applied. The overtime hour is assigned to Row 2, since hours accumulate in sequence and overtime is allocated starting from the earliest applicable row.
  • Row 4 (Drive, 0.5 hour): These hours push the total further beyond the OT limit and are counted as overtime.
• Rows allocated to CA:
  • Row 5 (Drive, 0.5 hour): Since the daily OT limit is already exceeded, this half hour is classified as overtime.
  • Row 6 (On Site, 4 hours): Total hours now exceed the Daily Double threshold (12 hours). The first 2 hours are assigned as overtime, while the last 2 hours become double time.