Calculations for Hourly and Exception-Hourly Employees

The system calculates alternative overtime as follows for hourly or exception-hourly employees:

1. Calculates the alternative rate as (regular period pay + overtime pay at contractual + total other FLSA eligible earnings) / total FLSA eligible hours.

2. Continues processing based on the FLSA Rule setting on the Company table:

   • If the FLSA rule is Always Use FLSA Premium, the system uses the calculated alternative rate to calculate the overtime premium by multiplying the alternative rate by the multiplication factor on the Earnings table minus the straight time factor. (For example, for multiplication factor 1.5 it uses .5, for 2.0 it uses 1.0.).

   • If the FLSA rule is Higher of FLSA /Contractual, the system compares the calculated alternative rate to the contractual hourly rate in job data.

     If the alternative rate is equal to or less than the contractual hourly rate, it uses the contractual hourly rate to calculate the overtime premium by multiplying the rate by the multiplication factor on the Earnings table.

     If the alternative rate is greater than the contractual hourly rate, it uses the alternative rate to calculate the overtime premium by multiplying the alternative rate by the multiplication factor on the Earnings table minus the straight time factor. (For example, for multiplication factor 1.5 it uses .5, for 2.0 it uses 1.0.)

3. Adds the calculated overtime premium to the overtime straight time amount to derive the total overtime amount.