Monthly Exception Hourly FLSA Calculation

Exception hourly employees that are paid semi-monthly or monthly must be set up with the Compensation Rate, Frequency of semi-monthly or monthly. For monthly or semimonthly pay periods, the COBOL uses the annualized allocation of standard hours and rate for regular earnings. The annualized allocation of standard hours and rate for regular earnings on the paysheet does not reflect the actual hours worked and rate paid for exception hourly employees. The system therefore calculates:

• Total hours worked in pay period = work days in pay period × work day hours from Job Data.

• Pay period average rate = pay period earnings / total hours worked.

• The FLSA regular earnings = pay period average rate × actual hours worked.

• The calculated FLSA regular earnings is the one used in FLSA rate calculation instead of the regular earnings from paycheck.

This topic provides an example of monthly exception hourly FLSA calculation.

Note:

For weekly and biweekly pay periods the calculation is the same as the example for hourly employees.