Creating overtime rules

If your Administration > Pay Codes and Policies menu shows Pay Rules rather than Overtime Rules, refer to Setting up pay rules for information relevant to your instance.

Overtime rules define under what conditions and at what rate employee overtime is paid. They can also be used to specify whether or not overtime should be banked.

Your company's overtime rules are based on internal organizational policies regarding overtime and the laws and requirements of your jurisdiction.

You can add as many overtime rules as you need, or use or edit any of the default rules available in the system.

If you have pay rule requirements that cannot be easily met by the Replicon overtime rule templates, contact Replicon Support. We may be able to create custom pay rules using our pay rule engine.

Adding an overtime rule

To add an overtime rule:

  1. Go to Administration > Pay Codes and Policies > Overtime Rules.
  2. Click Add Overtime Rule.
  3. Give the rule a name, and select the time off types you would like included in the overtime calculations for this rule.
  4. Select an overtime rule template, and set up the conditions under which overtime will be paid when this rule is assigned.
  5. Click Save.

You can now assign the overtime rule to users in their user profiles.

Including time off in overtime calculations

You can choose whether time off entered by users is included when calculating an overtime rule, and which time off types are included. Whether or not you include overtime depends on your organization’s policies.

Example of including overtime

You create a weekly overtime rule in which any time worked over 40 hours in a week is considered overtime, and all time off is included in calculations.

If a user assigned this rule takes 8 hours of vacation, then works 34 hours during the remainder of that week, they will net 2 hours of overtime (34 + 8 = 42 hours), since the time off they took was included.

About overtime rule conditions

Conditions of an overtime rule determine:

  • Which hours qualify as overtime
  • At what rate (pay code) overtime for the condition will be paid
  • Which overtime hours should be banked

What options are available depends on the template you are using. Many of the templates support multiple conditions.

About the overtime rule templates

Templates dictate what type of conditions you can create in a rule, and how pay is calculated based on those conditions.

Refer to Overtime rule examples for samples of rules set up using each template.

Simple rules

Template

Overtime paid

Single Condition Rule

The employee is paid overtime if they work over the number of hours specified, during the time span specified. The time span can be either a day, a work week (as defined in the user’s profile), or a timesheet period.

For day-based conditions, you can select whether the rule applies to work days, weekly days off, holidays, or all days.

Daily Overtime Rule

The employee is paid overtime for hours worked beyond a number you specify in a single day.

You can include multiple conditions, but the employee can only qualify for overtime based on one condition each day – the one that yields the most pay.

Each condition can apply to one of the following:

  • All days
  • Holidays
  • Weekly days off
  • Work days
  • A select day of the week (for example, Fridays only)

Weekly Overtime Rule

The employee is paid overtime for hours worked beyond a number you specify in a single work week, as assigned in their user profile.

You can include multiple conditions, but each overtime hour is only paid overtime based on one condition. For example, one condition could pay overtime at 1.5x regular pay for hours worked over 40, and a second could pay overtime at 2x regular pay for hours worked over 50.

Bi-Conditional rules

All of the Bi-Conditional templates are used to create rules with two overtime conditions: a Daily condition and Work Week condition.

Template

Overtime paid

Bi-Conditional Rule - OR (Apply both conditions)

The employee is paid overtime for both the Daily and Work Week conditions. Even if only one condition is met, overtime for that condition is paid.

If hours qualify for overtime under both conditions, those hours will be paid at the Daily rate.

Bi-Conditional Rule - OR (Apply condition that yields the highest pay)

The employee is paid only for the condition that yields the most overtime pay each week

Bi-Conditional Rule - AND

The employee is paid for the Daily condition, but only if the Work Week condition is also met

Complex rules

Template

Overtime paid

California Overtime Rule

The rule involves multiple conditions, for the following time frames:

  • Daily (2 conditions allowed)
  • Work week (1 condition allowed)
  • Seventh consecutive day (2 conditions allowed)

For each hour of overtime the employee works, they are paid only for the condition that yields the most pay.

Best-Of Overtime Rule

The rule can include multiple conditions, one condition each for the following time frames:

  • Daily
  • Weekly days off
  • Work week
  • Seventh consecutive day
  • Holidays
  • A select day of the week (for example, Fridays only)

For each hour of overtime the employee works, they are paid only for the condition that yields the most pay.

For work week conditions, you can choose to include hours worked on holidays in the hours total by selecting the Include hours worked on holidays check box.

FAQs

What is straight time, as referred to in the California Overtime and Bi-Conditional Rule - OR (Apply both conditions) templates?

For information about straight time, refer to the What is straight time? topic.

What is seventh consecutive day, as referred to in the California Overtime and Best-Of templates?

Seventh consecutive day overtime applies to hours worked on the seventh day of the employee’s work week, if they worked all six preceding days. All seven days must fall within the user's assigned work week.

How does a user know they’ve earned overtime?

Once an overtime rule is assigned, Replicon calculates overtime hours each time the user saves or submits their timesheet. The last calculated number of overtime hours is displayed on the upper, right-hand corner of their timesheet.