Overtime rule examples

If your Administration > Pay Codes and Policies menu shows Pay Rules rather than Overtime Rules, refer to Pay rule calculation examples for examples relevant to your instance.

Use the overtime rule templates to create overtime rules that match your organization's policies. Refer to Creating overtime rules for a description of each template.

Examples of each of the available templates are given below.

Single Condition Rule

An employee is paid $30/hr. In one week, they work for 44 hours.

If they are assigned a Single Condition rule with the condition given below, they would be paid as outlined below.

 

Condition

Pay

1

1.5x their regular rate for hours that exceed 40 in a single week

They worked 4 hours of overtime x 1.5 x $30/hr = $180

Therefore, the employee would be paid $180 in overtime pay that week.

Daily Overtime Rule

Example 1

An employee is paid $30/hr, and has Saturdays and Sundays off.

In one week, the employee works for 8 hours from Monday to Thursday, works 10 hours on Friday, and works 8 hours on Saturday.

If they are assigned a Daily Overtime rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

1.5x their regular rate for hours that exceed 8 on a work day

They worked 10 hours on Friday, which yields 2 hours (beyond 8) of daily overtime x 1.5 x $30/hr = $90

2

2x their regular rate for hours worked on a weekly day off

They worked 8 hours on Saturday, a weekly day off, which yields 8 hours of daily overtime x 2 x $30/hr = $480

Therefore, the employee would be paid a total of $570 ($90 + $480) in overtime pay that week.

Example 2

An employee is paid $30/hr, and has Saturdays and Sundays off.

In one week, the employee works 10 hours on Monday, but 8 hours every other day. If they are assigned a Daily Overtime rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

2x their regular rate for hours exceeding 9 on Mondays

They worked 10 hours on Monday, which yields 1 hour (beyond 9) of daily overtime x 2 x $30/hr = $60

2

1.5x their regular rate for hours exceeding 8 on work days

They worked 10 hours on Monday, which yields 2 hours (beyond 8) of daily overtime x 1.5 x $30/hr = $90

Monday is the only day on which they worked overtime. Since Condition 2 yields the greatest pay for Monday, that is the condition that applies, and the employee would be paid a total of $90 in overtime pay that week.

Example 3

An employee is paid $30/hr, and has Saturdays and Sundays off.

In one week, the employee works 14 hours on Monday, but 8 hours every other day. If they are assigned a Daily Overtime rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

2x their regular rate for hours exceeding 9 on Mondays

They worked over 14 hours on Monday, which yields 5 hours (beyond 9) of daily overtime x 2 x $30/hr = $300

2

1.5x their regular rate for hours exceeding 8 on work days

They worked 14 hours on Monday, which yields 6 hours (beyond 8) of daily overtime x 1.5 x $30/hr = $270

Monday is the only day on which they worked overtime. In this case, Condition 1 yields the greatest pay for Monday, so that is the condition that applies, and the employee would be paid a total of $300 in overtime pay that week.

Weekly Overtime Rule

An employee is paid $30/hr.

In one week, the employee works 43 hours. If they are assigned a Weekly Overtime rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

1x their regular rate for hours less than 37 in a week

They would be paid their regular rate, not overtime, for the first 37 hours they worked

2

1x their regular rate hours between 37 and 40 (these hours are marked as Straight Overtime (SOT); this pay code is sometimes required when exporting hours to external payroll systems)

They would be paid their regular rate, not overtime, for the hours between 37 and 40

3

1.5x their regular rate for hours beyond 40 hours in a week

The worked 43 hours in the week, which yields 3 hours (beyond 40) of overtime x 1.5 x $30/hr = $135

Therefore, the employee would be paid a total of $135 in overtime pay that week.

Bi-Conditional Rule - OR (Apply both conditions)

Example 1

An employee is paid $30/hr.

In one week, the employee works for 8 hours from Monday to Thursday, then works 10 hours on Friday, and 2 hours on Saturday.

If they are assigned a Bi-Conditional Rule - OR (Apply both conditions) rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

1.5x their regular rate for hours worked beyond 8 in a day

They worked 10 hours on Friday, which yields 2 hours of daily overtime x 1.5 x $30/hr = $90

2

2x their regular rate for work hours beyond 40 in a week, with the condition that they must work 8 hours of straight time each day

They worked 44 hours, but 2 hours are accounted for in Condition 1, which yields 2 hours of weekly overtime x 2 x $30/hr = $120

Therefore, the employee would be paid a total of $210 ($90 + $120) in overtime pay that week.

Example 2

An employee is paid $30/hr.

In one week, the employee works 10 hours on Friday, and 39 hours total for the week.

If they are assigned a Bi-Conditional Rule - OR (Apply both conditions) rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

1.5x their regular rate for hours worked beyond 8 in a day

2 hours of daily overtime x 1.5 x $30/hr = $90

2

2x their regular rate for work hours beyond 40 in a week, with the condition that they must work 8 hours of straight time each day

0 hours of weekly overtime x 2 x $30/hr = $0

Therefore, the employee would be paid a total of $90 in overtime pay that week. The are still paid for Condition 1 even though Condition 2 was not met.

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

An employee is paid $30/hr.

In one week, the employee works for 8 hours from Monday to Thursday, then works 10 hours on Friday.

If they are assigned a Bi-Conditional Rule - OR (Apply condition that yields the highest pay) rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

1.5x their regular rate for hours worked beyond 8 in a day

They worked 10 hours on Friday, which yields 2 hours of daily overtime x 1.5 x $30/hr = $90

2

2x their regular rate for work hours beyond 40 in a week

They worked 42 hours, which yields 2 hours of weekly overtime x 2 x $30/hr = $120

Therefore, the employee would be paid $120 in overtime that week, since the second condition yields more total pay.

Bi-Conditional Rule - AND

Example 1

An employee is paid $30/hr.

In one week, the employee works for 8 hours from Monday to Thursday, then works 10 hours on Friday.

If they are assigned a Bi-Conditional Rule - AND rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

Pays 1.5x their regular rate for hours worked beyond 8 in a day

They worked 10 hours on Friday, which yields 2 hours of daily overtime x 1.5 x $30/hr = $90

2

Requires them to work at least 40 hours in a week before they qualify for overtime based on Condition 1

They worked 42 hours, which means they qualify for overtime pay

Therefore, since both conditions are met, the employee would be paid $90 in overtime that week.

Example 2

An employee is paid $30/hr.

In one week, the employee works for 10 hours on Monday, 8 hours each day from Tuesday to Thursday, and then works only 4 hours on Friday.

If they are assigned a Bi-Conditional Rule - AND rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

Pays 1.5x their regular rate for hours worked beyond 8 in a day

They worked 10 hours on Monday, which yields 2 hours of daily overtime x 1.5 x $30/hr = $90

2

Requires them to work at least 40 hours in a week before they qualify for overtime based on Condition 1

They worked 38 hours, fewer than the required weekly number

Therefore, since both conditions are NOT met, the employee would be paid $0 overtime that week.

California Overtime Rule

An employee is paid $30/hr. They have a work week that runs from Sunday to Saturday.

One week, they work for 8 hours each day from Sunday to Thursday, and 12 hours on Friday, and 10 hours on Saturday.

If they are assigned a California Overtime rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

1.5x their regular rate for hours worked beyond 8 but less than 10 in a day

They worked 12 hours on Friday, which yields 2 hours (beyond 8 and less than 10) of daily overtime x 1.5 x $30/hr = $90 (The Saturday hours beyond 8 qualify under Condition 5)

2

2x their regular rate for hours worked beyond 10 in a day

They worked 12 hours on Friday, which yields 2 hours (beyond 10) of daily overtime x 2 x $30/hr = $120

3

1.5x their regular rate for hours worked beyond 40 in a week, providing they work 8 hours of straight time each day

They worked 62 hours in the week which yields 22 hours (beyond 40) of weekly overtime. However, 6 of those hours qualify under Conditions 1, 2, and 5. So, only 16 hours qualify as weekly overtime x 1.5 x $30/hr = $720

4

1.5x their regular rate for work hours beyond 0 and less than 8 on their 7th consecutive day of work

They worked 10 hours on Saturday, but the first 8 of those are already accounted for in Condition 3, therefore they worked 0 hours of 7th consecutive day overtime x 1.5 x $30/hr = $0

5

2x their regular rate for hours worked beyond 8 on their 7th consecutive day of work

They worked 10 hours on Saturday, which yields 2 hours of 7th consecutive day overtime x 2 x $30/hr = $120

Therefore, the employee would be paid a total of $1050 ($90 + $120 + $720 + $0 + $120) in overtime pay that week.

Best-Of Overtime Rule

An employee is paid $30/hr. They have a work week that runs from Sunday to Saturday.

One week, they work for 8 hours each day from Monday to Wednesday, and 10 hours on each day from Thursday to Saturday. The Friday of the week is a holiday.

If they are assigned a Best-of Overtime rule with the conditions given below, they would be paid as outlined below.

 

Condition

Pay

1

1.5x their regular rate for hours worked beyond 8 but less than 10 in a day

They worked 10 hours on Thursday and on Saturday, which yields 4 hours (beyond 8) of daily overtime x 1.5 x $30/hr = $180

2

2x their regular rate for hours worked beyond 10 in a day

No hours qualify for this condition

3

1.5x their regular rate for hours worked beyond 40 in a week, with hours worked on holidays included

They worked 54 hours in the week which yields 22 hours of weekly overtime. Note that this week has only 32 regular hours, since 8 are considered holiday time off hours. However, 8 of those overtime hours qualify under Condition 4, 4 qualify under Condition 1, and 2 qualify under Condition 5. So, only 8 hours qualify as weekly overtime x 1.5 x $30/hr = $360

4

1.5x their regular rate for any hours worked less than 8 on a holiday

They worked 10 hours on the holiday, which yields 8 hours (beyond 0) of holiday overtime x 1.5 x $30/hr = $360

5

2x their regular rate for hours worked beyond 8 on a holiday

They worked 10 hours on the holiday, which yields 2 hours (beyond 8) of holiday overtime x 2 x $30/hr = $120

Therefore, the employee would be paid a total of $1020 (= $180 + $0 + $360 + $360 + $120) in overtime pay that week.