What is straight time?

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. For example, 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.

 Why is the straight time condition necessary?

Applying a straight time condition to work week overtime calculations:

  • Prevents users from being paid overtime twice for the same hours

Work week overtime is typically only paid in addition to daily overtime. Without straight time requirements, hours could qualify as both daily and weekly overtime hours.

  • Prevents users from being paid overtime without working their entire work week

For example, 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.

How is straight time 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. If a straight time condition is in effect, only hours worked up to the straight time value each day count towards that work week total.

For example, 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 hour:

47

43

This user would be paid for 3 hours of work week overtime, not 7. The extra hours they worked on the Thursday would be compensated for under a daily condition in their overtime rule.