Overtime Calculation in Leave and Time-Off
When conffiguring leave and time-off types in Workforce Management (WFM), you can set the Accrues Overtime preference to enable overtime calculations. This preference lets the leave and time-off events of the selected type's hours to be eligible for overtime.
By default, the Accrues Overtime preference is switched off for all leave or time-off types. When checked, all leave and time-off events of the selected type are considered for overtime eligibility. This setting applies for all employees who have a calculation type that includes overtime.
For further information about assigning employees wages and calculation types, see Managing Wages for WFM Employees.
Guidelines for Overtime Calculations in Leave and Time-Off
Overtime and penalties are not stored on the actual leave or time-off event. Overtime and penalties are only applied to time worked or shift segments.
If overtime applies during a leave or time-off event, it will be applied to the previous worked time or shifts.
Example 1
Example Rule: Overtime applies when, during the week, time worked exceeds 38 hours.
Scenario: The employee was on Annual Leave for 8 hours a day for the first two days of their working week. Then, they worked 8-hour shifts over the next 3 days.
Expectations: You can expect the following:
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If the Accrues overtime box is unchecked, they do not have any overtime hours, because only the 24 hours they worked are counted.
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If the Accrues overtime box is checked, then the 16 hours of leave count toward their hours worked. As such, the 40 hours are counted. Based on the example rule, the last 2 hours of their final shift include overtime.
Example 2
Example Rule: Overtime applies when, during the week, time worked exceeds 38 hours.
Scenario: For this example, overtime only applies to time worked or to a shift segment. If overtime applies during a leave or time-off event, it will be applied to the previous worked time or shift.
The employee was on Annual Leave for 8 hours a day for the first day of their working week. Then, they worked 8-hour shifts over the next 2 days. Then, they went on another leave or time-off event for 8 hours a day.
Expectations: You can expect the following:
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If the Accrues overtime box is unchecked, they do not have overtime, as only the 24 hours they worked are counted.
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If the Accrues overtime box is checked, then the 16 hours of leave count toward their hours worked. Their 40 hours of work are counted.
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Based on the example rule, the last 2 hours of the leave or time-off event at the end of the workweek are counted as overtime.
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Leave and time-off events, however, can’t be assigned with overtime in WFM. The last 2 hours of overtime that count as leave or time-off are then applied to the previous shift.
Workforce Management Accrues Overtime FAQ
Does the Accrues Overtime preference apply to salaried employees?
Yes. If salaried employees are configured to apply overtime on their employee profile wage object and the leave type has the Accrues Overtime preference switched on, then those hours will be counted toward overtime. You can set salaried employees to overtime by setting an overtime rate on the wage object.
If I switch on Accrues Overtime for a leave type, will it apply to all instances of this type, including historical leave?
Yes. Switching on the Accrues Overtime preference will apply to all historical, current, and future instances of the leave type. You can also create a new leave type if you prefer.