As an employee can have multiple overtime policies, it is important to be aware of how these multiple policies can interact and calculate the employee's time card.
For more information about policies or overtime policies, you can refer to either of the relevant articles: Guide to Employee-Based Policies & Overtime Policies for ExakTime
Order of Overtime Policy Application
Employees' time record(s) can have overtime policies from various sources (shifts, locations, and employees), and only one set of overtime policies will apply to a time record. It is important to be aware of the order in which they are applied if multiple overtime policies could take effect, to understand how overtime is being calculated.
In order of priority, starting from first priority to last priority.
- Shifts
- Location
- Employee
For example, if a time record for an employee qualifies for daily overtime based on their shift, their worked location, and their employee policy, ExakTime will only apply the overtime policies from the Shift to the time record and will ignore the Location and Employee overtime policies.
Overtime Scenarios
Location Overtime before Employee Overtime
If an employee has both employee and location overtime policies, it will use the daily overtime policies for the location first. If the location does not have any daily overtime policies, it will look to the employee's daily overtime policies.
For example, we have an employee who has worked two different days, and they have two daily overtime policies, employee and location, with the following overtime policies:
- Employee Daily Overtime Policy - Anything over 10 regular hours is overtime.
- Location A Daily Overtime Policy - Anything over 8 regular hours is overtime.
- Location C Daily Overtime Policy - No daily overtime policies.
Based on the above policy settings and in the example below:
- Monday - As the employee worked 10 hours at Location A, their hours are calculated as 8 regular hours and 2 overtime hours, as the Location Daily Overtime will be used.
- Tuesday - As the employee worked 11 hours at Location C, their hours are calculated as 10 regular hours and 1 overtime hour. As there are no daily overtime policies for the location, it will look to the employee's daily overtime policies for calculating overtime hours.
Multiple Locations with Different Policies
If an employee were to work at multiple different locations with daily overtime policies, each daily overtime is calculated for each individual location and not together.
For our example, we have an employee who is working at multiple locations with the following overtime policies:
- Location A Location Daily Overtime Policy - Anything after 8 hours is overtime.
- Location B Location Daily Overtime Policy - Anything after 8 hours is overtime.
- Location C Location Daily Overtime Policy - No Location Daily Overtime Policy
- Employee Daily Overtime - Anything after 10 hours is overtime.
Based on the above policy settings and in the example below:
- Sunday - The employee worked at Location C for 11 hours. It is calculated as 10 regular and 2 overtime hours based on the "Employee Daily Overtime" policy.
- Monday - The employee worked at Location A for 10 hours. It is calculated as 8 regular and 2 overtime hours based on the "Location Daily Overtime" policy for Location A.
- Tuesday - The employee worked at Location A for 7 hours and at Location B for 3 hours. As the employee has worked under 8 hours for both locations, they will not receive any overtime hours, as the location's daily overtime is treated independently of each other and the employee's daily overtime.
- Wednesday - The employee worked at Location A for 6:30 hours and at Location C for 4:30 hours. As the employee worked under the 8 hours required for Location A, no overtime is calculated. While the overall hours for the day would appear to exceed the 10 hours required for the employee's daily overtime, the hours from Location A have already contributed to the Location's daily overtime calculation and will not count towards the employee's overtime calculation.
Daily and Weekly Overtime
Similar to if an employee had employee and location overtime policies, if an employee were to have daily and weekly overtime, it would calculate the overtime based on whatever they would qualify for first.
For our example, we have an employee working in California who has the following overtime policies.
- Daily Overtime - Anything after 8 hours is overtime.
- Weekly Overtime - Anything after 40 hours is overtime.
The employee's time card calculates as:
- Monday - 8 Hours (Regular)
- Tuesday - 8 Hours (Regular)
- Wednesday - 8 Hours (Regular) & 2 Hours (Overtime)
- Thursday - 5 Hours (Regular)
- Friday - 8 Hours (Regular)
- Saturday - 3 Hours (Regular) & 2 Hours (Overtime)
On Wednesday, they worked for 10 hours total. 8 of those hours were calculated as regular, with 2 hours calculated as overtime. This is due to the Daily Overtime policies calculating anything after 8 regular hours in a day as overtime.
On Saturday, they worked for 5 hours total. 3 of those hours were calculated as regular, with 2 hours calculated as overtime. Since the employee crossed the Weekly Overtime threshold in the middle of their workday, the remainder of their workday is overtime.