Double-time Calculations for FLSA and Alternative Overtime Employees

The system calculates double-time pay based on a combination of options that are set on the Job Data Table, the Company Table, and the Alternative Overtime State Table. These settings work together and your outcome can vary based on what is selected in the three tables.

On the Job Data Table (Job Information page), the system considers the FLSA Status setting.

If Nonexempt is selected, then the system allows a calculation of FLSA only after the employee reaches 40 hours. The system looks at the Company Table to determine the FLSA rule to use.
If Alt OT (alternate overtime) is selected, then the system ignores the 40-hour threshold and looks at the Alternative Overtime State Table to determine if the employment state is listed.

Calculations for FSLA status of Non-Exempt on the Job Table

For FLSA nonexempt employees, the system considers the FLSA rule specified on the Company Table (Default Settings page).

If the FLSA Required check box is selected and Higher of FLSA/Contractual is specified, then the system calculates the hourly rate times 2.0 for any hours over 40.
If the FLSA Required check box is selected and Always uses FLSA Premium is specified, then the system calculates the FLSA rate times 1.5 for any hours over 40.
If the FLSA Required check box is not selected, then the system calculates the hourly rate times 2.0 for any hours over 40.

Calculations for FLSA status of Alternate Overtime on the Job Table

For Alternative Overtime employees, the system determines if the employment state is listed on the Alternative Overtime State Table page.

If the state is listed, then the system allows the Premium Calc (FLSA) to be calculated on double time and uses the multiplication factor in the earnings setup to calculate the alternate rate of pay.
If the state is not listed, then the system uses the FLSA rule that is set on the Company Table.

Examples for Hourly Employee with Fixed FLSA Period Rule

The following table lists calculations for 5 double-time hours based on a regular 40-hour week at a standard rate of 10.00 USD per hour and a $100.00 bonus.

Example	FLSA Rule on Company Table	FLSA Status on Job Table	State Listed in Alt OT State Table	Rate Used	Rate Amount USD	Overtime Calculation Amount USD
1	Higher of FLSA/ Contractual	Non Exempt	NA	Hourly Rate	20.000000	100.00
2	Always Use FLSA Premium	Non Exempt	NA	FLSA	12.222222	80.56
3	Higher of FLSA/ Contractual	Alt OT	Yes	Alternative Rate	12.2222222	111.11
4	Always Use FLSA Premium	Alt OT	Yes	Alternative Rate	12.222222	111.11
5	Higher of FLSA/ Contractual	Alt OT	No	Hourly Rate	20.000000	100.00
6	Always Use FLSA Premium	Alt OT	No	FLSA	12.222222	80.56

Rate for FLSA/ALT OT: 40 (Regular) Hours x 10.00 USD (Standard Rate) = 400.00 USD 5 (Double Time Hours) x 10.00 USD (Standard Rate) = 50.00 USD Bonus= 100.00 USD Subtotal = 550.00 USD 550.00 USD/45 Total Hours = 12.22222 USD

Example 1

On the Job Table the employee has an FLSA status of Non Exempt, and on the Company Table the rate to use is Higher of FLSA/Contractual.

5.00 hours x 20.00 USD (10.00 USD x 2.0) = 100.00 USD is higher than (5.00 hours x 10.00 USD) + (5.00 x 12.222222 x .5) = 80.56 USD.

The system will pay the employee 100.00 USD of overtime pay.

Example 2

On the Job Table the employee has an FLSA status of Non Exempt, and on the Company Table the rate to use is Always Use FLSA Premium. The system uses the Federal FLSA Rule which is based on 1.5 times the employee’s hourly rate.

(5.00 hours x 10.00 USD) + (5.00 x 12.222222 x .5) = 80.56 USD.

The system will pay the employee 80.56 USD of overtime pay.

Examples 3 and 4

The state is set up in the Alternative Overtime State Table and on the Job Table the employee has an FLSA status of Alt OT. Therefore the system uses the Multiplication Factor in the Earnings Table to determine the rate calculations regardless of whether the Company Table is set to Always Use FLSA Premium or Always Use FLSA Premium. In this example, the Double Time earnings code is set up with a multiplication factor of 2.0. The Category for FLSA has regular pay included. This means the employee will get the Premium Calc (FLSA) on anything over 1.0 (regular pay).

(5.00 hours x 10.00 USD) + (5.00 x 12.222222 x 1.0) = 111.11 USD

The system will pay the employee 111.11 USD of overtime pay.

Example 5

On the Job Table the employee has an FLSA status of ALT OT, but the employee’s state is not listed in the Alternative Overtime State Table. With this setup, the employee does not need to meet the 40-hour threshold to obtain an Alt OT calculation. The system bases the calculation on the Standard Federal FLSA calculation routine. The system looks at the Company Table and sees that the rate to use is the Hiigher of FLSA/Contractual.

5.00 hours x 20.00 USD (10.00 x 2.0) = 100.00 USD is higher than (5.00 hours x 10.00 USD) + (5.00 x 12.222222 x .5) = 80.56 USD.

The system will pay the employee 100.00 USD of overtime pay.

Example 6

On the Job Table the employee has an FLSA status of ALT OT, but the employee’s state is not listed in the Alternative Overtime State Table. The same as in example 5, with this setup, the employee does not need to meet the 40-hour threshold to obtain an Alt OT calculation. The system bases the calculation on the Standard Federal FLSA calculation routine. However, in this example the system looks at the Company Table and sees that the rate to use is Always Use FLSA Premium. The system limits the overtime calculation to Federal rules of 1.5.

(5.00 hours x 10.00 USD) + (5.00 x 12.222222 x .5) = 80.56 USD

The system will pay the employee 80.56 USD of overtime pay.