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Overtime Types

Overtime needs to be calculated according to the type of overtime.

• Standard Overtime:  In the system, standard overtime is considered the master hourly rate times the overtime rate, which is normally 1.5.
• FLSA Overtime:  In the system, FLSA overtime calculates a weighted average to determine the regular hourly rate and multiplies the regular hourly rate by 1.5. For more information about setting up and applying FLSA overtime, see FLSA Overtime.
• Overtime for Tipped Employees:  This is used for tipped employees who earn minimum wage and tips, such as some restaurant employees. The overtime calculation for tipped employees calculates the hourly rate for overtime as the:

(Applicable Minimum Wage x 1.5) - (Calculated Regular Rate of Pay - the minimum wage)

Detailed pay entry, time import processing, and grid pay entry provide the option to enter and calculate overtime for tipped employees. For more information about setting up and applying this, see Overtime for Tipped Employees.