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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.