Alternative Overtime Processing

Here are some general principles of alternative overtime calculations and processing:

• For those employees identified as subject to alternative overtime calculation, the system calculates overtime on the alternative basis rather than the usual FLSA method.

• To calculate alternative overtime, the system uses the multiplication factor specified for the overtime earnings code on the Earnings table instead of the fixed 0.5 used in federal FLSA calculation.

• The alternative overtime method follows the FLSA rule setting on the Company table, either always paying the alternative overtime rate or paying the higher of the alternative overtime rate or the contractual rate.

  Note:

  Salaried employees with unspecified hours are always calculated at the Alternative Overtime rate, even if it is lower than the contractual rate.

• FLSA eligible hours for salaried employees differs depending upon the option selected for FLSA Salaried Hours Used:

  • Unspecified Salaried Hours: The alternative rate is calculated using the total FLSA-eligible hours worked in the week.

  • Fixed Salaried Hours. The alternative rate is calculated using the weekly standard hours in job data.

Note:

Select the FLSA salaried hours used option on the FLSA Period Definition page, accessed from the Pay Group Table - Calc Parameters page.