What is Straight time? How is it used in work week overtime calculations and why is it necessary?
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Straight time is a concept used to calculate work week overtime amounts in overtime rules based on the California Overtime and Bi-Conditional Rule – OR (Apply both conditions) templates.
Straight time is equal to the task hours an employee is expected to work in a day.
If employees are required to work 8 hours a day, you would enter 8 hours for straight time in the work week overtime condition of their overtime rule.
How straight time is used in work week overtime calculations?
An employee is paid work week overtime for hours they work in excess of a number you specify (for example, 40 hours), in a single week. However, only hours worked that meet the straight time condition each day count towards that total.
A user is assigned an overtime rule that includes the following work week overtime condition:
Hours: Greater than 40 where Straight Time is 8 Hours
The user works the following in a single work week:
Day Hours worked Hours that meet the straight time condition
Sunday 0 0
Monday 8 8
Tuesday 7 7
Wednesday 8 8
Thursday 12 8
Friday 6 6
Saturday 6 6
Total hours: 47 43
This user would be paid for 3 hours of work week overtime, not 7
Why is the straight time condition necessary?
Employees with a straight time requirement of 8 hours could not accumulate 40 work week hours by working 10 hours a day for four days in a week. They would have to work 8 hours each work day for five days before work week overtime would apply.