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Overtime Policy Codes

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Overtime policy codes define rate factors and levels for overtime processing on the self-service Weekly Timesheets. Overtime policy codes only impact overtime processing on the self-service Weekly Timesheets and only affect employees who have a particular overtime policy assignment.

Overtime policies are mandated by the Department of Labor for the states that the work is performed within. Be sure to comply with all applicable regulations. When fields for the rate factors are left blank for a section, no rate factor applies to that particular overtime period and minimum number of hours.

The Overtime Policy Table provides one selection list on the Location Codes Table, one on the Department Codes Table, and one on the Attendance tab within the Time Master. An overtime policy code is assigned to an employee on the Attendance tab within the Time Master.

Note:  While overtime policy codes are for self-service timesheets, system overtime setup can be defined for detailed pay entry for FLSA overtime and a variety of pay entry methods for tipped minimum wage overtime.

Setup for Weekly Timesheet Overtime

Before implementing weekly timesheets, define overtime policies with Overtime Policy Codes and assign these policies to employees. Also, employees need to have the following selections on their Attendance tabs within the Time Master: "Export Hours To Payroll," "Eligible for Overtime," and Overtime policy. To support accurate calculation of overtime, the overtime period, work week begin day, work week begin time, and FLSA Exempt checkbox (often blank) need to be defined accurately for the employee.

To support overtime calculations on the weekly timesheets, standard timeclock transaction codes related to overtime need to remain active. Because processing for weekly timesheets includes overtime processing, the rate factors for earnings selected on Time Clock Transaction Codes for overtime need to have no rate factor or a rate factor of 1 to avoid over-calculating the overtime rates.

Overtime Time Clock Transaction Codes