The overtime rule gathers a set of parameters that control the calculation of overtime based on the time and attendance clocking performed by the employees. An overtime rule is linked to an employee via the rule type, which in turn is assigned to the employee in the Employee Schedules and Rules window.
Overtime is calculated on a daily basis and optionally for a specific period, e.g., the week. The daily calculation is performed by the program adding hours and wage codes to the Time Card-Day window result. This calculation is based on the clocking information found in the time card. The daily calculation does not consider any other information than the clocking for the specific day.
The periodical calculation supplements, and is based on, the daily calculation. It takes into consideration the overtime rules for the period. For example, the rules might require a minimum number of presence and approved absence hours before any overtime increment is added to the periodical result. The calculation is performed by a separate program and it is automatically done after the period is ended. The periodical result is viewed in the Periodic Result window. It is not added to the result in the Time Card-Day window.
The transfer to payroll includes information from both the time card and the periodical calculation. In general, when using the periodical calculation, the time card keeps the presence and absence hours, and the periodical calculation keeps the increment wage codes for approved overtime.
The Overtime Rule window is not the only window you can use to control the outcome of an overtime clocking. The other windows that control overtime are listed below. Please refer to the corresponding help files for additional information.
Day Type Details ( a right mouse button option from the Day Types window).
In the Day Type Details window, you define the overtime intervals and the corresponding wage codes. The overtime wage codes define the cash payment for the hours worked within the specific interval. The wage codes are added to the time card result when the employee performs an overtime clocking. There is a priority setting, mandatory for each overtime interval in the Day Type Details window that controls the reduction order of overtime hours when the scheduled hours are not fulfilled. This Priority field is referred to in the overtime rule parameters.
Specified Overtime (in the Wage Codes folder)
In this window you define wage codes that first summarize the hours worked within the time interval of the current day, and then distribute these hours on a wage code sequence. For example, the first two hours are OT-1, the next four hours are OT-2, and so on. This is a separate setup that is not referred to in the overtime rule.
Overtime for Compensatory Time (in the Wage Codes folder)
Some agreements let the employees convert overtime hours worked into compensatory leave. This window controls how the overtime wage code from the Day Type Details window is converted into the corresponding overtime compensatory leave wage code, as well as its balance accrual factor. The Work Hour Rules/Overtime window includes one parameter that refers to this setting. This is in the Replace Normal Clocking field and the parameter Overtime Comp.
Absence Parameters (in the Wage Codes folder)
Certain absence counts as working hours, i.e., absences accounted for on these codes are not reducing overtime hours if they occur in the same day. The window includes a parameter setting to control this behavior.