This article reviews the 'Overtime Rules' tab of the Smart Ops Admin page. Here, Users can view, edit, and create Overtime Rule Groups. 

Article Topics:

• Overview
• Important Notes
  • Overtime Calculations Across Locations
  • Exempt Employees
• Security 
• Rule Group List
• Rule Group Settings
  • Weighted Average OT Rate
  • Overtime Types
• Applying Locations
• Creating New Rule Groups

Overview

When a Location is applied to an Overtime Rule Group, projected overtime will be calculated for that Location on the Schedule Calendar. Users will then receive overtime warnings when creating or publishing shifts, and projected overtime will be included in Scheduled Labor reporting.

Predicted Overtime Displayed in Red
Scheduling Conflict Warning
Publish with Conflicts? Confirmation

R365 overtime calculations can also be calculated for 'actual' Labor brought in through the DSS for the Location when the 'Overtime Tracking' setting on the associated Location Record is set to 'R365 OT Rules'.

Important Notes

Overtime Calculations Across Locations

Overtime can be set to be calculated for each Location separately or for all Locations associated with an Employee. 

When the 'Apply Labor Rules Across Locations' setting on the System Preferences 'Miscellaneous' tab is enabled, OT Rules will combine all punches and scheduled shifts from all Locations associated with each Employee when making calculations. 

Important Note: If the Locations an Employee works at are assigned to more than one OT Rule Group, the OT Rule Group for their Primary Location will be used when calculating overtime across Locations. 

Exempt Employees

For accurate Labor reporting, some Employees, such as salaried Employees, should not be included in projected or actual overtime calculations. These Employees can be marked as exempt from overtime hours and/or pay calculations so that Scheduling and Forecasting are not skewed. 

To mark an Employee as exempt, navigate to the desired Employee Record from the Employees page. Select one or more of the 'Exclusion' checkboxes under 'Employee Settings' on the 'General' tab:

 

• Exclude Labor Hours- This will exclude Labor Hours or Labor $ on the Employee's timecard
  • Note: If this is selected, then both Exclude OT and Exclude Labor $ will be selected by default
    
    

• Exclude OT - This will ensure that the Employee does not receive any overtime pay on their timecard for any hours worked beyond the timeframe set for OT Rule Group(s).
  
  
• Exclude Labor $ - This will display the total Labor Hours for the Employee, but the Employee's Labor $ will not impact the total Labor $ for their corresponding Location(s)

Security 

Users with the following Permission will be able to to view and edit Overtime Rule Groups:

• Labor → Labor Rules → Overtime Rules

Learn more about managing Permissions and Custom User Roles here. The Permission Access Report can be used to determine which User Roles or Users already have these Permissions assigned. Learn more about User Setup and Security here.

Rule Group List

1) Search - Enter two or more characters to search the 'Group', 'Applied Locations', or 'Edit By' columns for the entered text

2) Table Views - This enables the User to create and edit saved views of this list. Click this icon, then either 'Save Current View' to save the new view or 'Edit Table Views' to edit the selected view. All saved views are listed above these two action buttons

3) Filter - Click to filter any of the available columns 

• To add a new filter - Click '+Add Filter' to add a new filter and enter the filter parameters. 
• To remove a filter - Click the trashcan icon associated with the filter, or click 'Clear All' to clear all filters.  
• To apply filters - Click 'Apply' to apply the filters to the Rule Group List.

4) Columns - This lists all of the columns available to display. Check or uncheck a column name to include or exclude it from the list. Columns can also be reorganized by dragging and dropping the desired column's rearrange icon

• Group - Name of the Rule Group
    
• Type- Indicates which types of overtime are calculated by the Rule
  • Daily- The Employee exceeds a specific total number of hours for a business day
    • Note: The 'Daily' overtime type cannot be configured in the same Rule Group as the '24-hour' overtime type
      
      
  • Weekly - The Employee exceeds a specific total number of hours in a week
    
    
  • 7th Day Consecutive - The Employee works all seven days during a week
    
    
  • 24-Hour- The Employee exceeds a specific total number of hours in a 24-hour period
    • Note: The '24-Hour' overtime type cannot be configured in the same Rule Group as the 'Daily' overtime type
      
      
• Applied Locations - Locations applied to the Rule Group. If more than one Location is applied, click to open a drop-down list of these Locations.
    
• Edited Date - Last date that the Rule Group was edited
    
• Edited By - User who last edited the Rule Group
    

5) Export - This will download the listed information into a .csv file
  

6) Refresh - This will refresh the listing

7) Rule Group - Click to open the Rule Group sidesheet

Rule Group Header

1) Action Buttons - The header contains the following action buttons:
 

•  - Click to save and apply changes to an existing Rule Group
• - Click to delete the Rule Group
    

3) Fullscreen Button - This will expand the sidesheet to fullscreen. When in fullscreen, this icon will be replaced by a minimize icon; click to return to the original size. 

4) Close - This will close out the sidesheet without saving

5) Name - Name for the Rule Group

Rule Group Settings

Each Overtime Rule Group can be configured to use a Weighted Average OT Rate and multiple Overtime Types. Each Overtime Type will determine the thresholds for calculating overtime. 

Weighted Average OT Rate

When Weighted Average OT Rate is enabled, the OT premium rate is calculated for all employees who work multiple jobs.

When the 'Weighted Average OT Rate' setting is checked, an average OT Premium Rate will be calculated in compliance with FLSA standards. The OT Premium Rate is calculated weekly, based on the hours worked by the Employee, as follows:

1. Straight Time Earnings are calculated
   • Straight Time Earnings are calculated as the weekly total of Regular Rate x Hours for each Job worked.  
     • Note: If the Employee is paid a tipped minimum wage, the configured 'Minimum Wage' will be used as the Regular Rate when calculating Straight Time Earnings.
       
       
2. Average Regular Rate is calculated
   • Straight Time Earnings  / Total Weekly Hours = Average Regular Rate
     
     
3. OT Premium Rate is calculated
   • Average Regular Rate x (Overtime Rate - 1) = OT Premium Rate
     • Note: Overtime Rate is configured per Overtime Type (below)

Minimum Wage for Tipped Employees

Enabling the Weighted Average OT Rate setting will display an additional Minimum Wage field. The amount entered into this field is used as the Regular Rate in WAOT calculations for employees receiving the tipped minimum wage. 

Overtime Types

There are multiple types of overtime that can be calculated based on the needs of applied Locations.

One or more types can be selected where both hours worked and overtime rate are set (e.g., 1.5 times their hourly pay). Options include:

• Daily - The Employee exceeds a specific total number of hours for a business day
  • Note: The 'Daily' overtime type cannot be configured in the same Rule Group as the '24-hour' overtime type
    
    
• Weekly - The Employee exceeds a specific total number of hours in a week
  
  
• 7th Day Consecutive - The Employee works all seven days during a week
  
  
• 24-Hour- The Employee exceeds a specific total number of hours in a 24-hour period
  • Note: This rule calculates a 24-Hour period per start punch. See the 24-hour type section below for additional information and examples.
    
    
  • Note: The '24-Hour' overtime type cannot be configured in the same Rule Group as the 'Daily' overtime type

Daily, Weekly, and 7th Day Consecutive Types

The configuration for the Daily, Weekly, and 7th Day Consecutive types all use the same layout. These types all contain a field for the hour threshold and a field for the overtime rate multiplier. If needed, additional tiers can be added to these types if the overtime rate multiplier changes after an additional threshold is met. 

1) Hours Worked - The threshold at which additional worked hours will have the Overtime Rate applied

2) Overtime Rate - The multiplier applied to hours worked past the associated threshold

3) Delete Tier - Click the trashcan icon to delete the threshold tier. 

• Note: This button is disabled if only one tier is configured

4) + Add Tier - Click to add an additional tier to the Overtime Type

• Note: The 'Hours Worked' thresholds for additional tiers must be greater than the previous tier

24-Hour Type

The 24-Hour overtime type configuration and can be set up as 'Qualifying Wage' or 'Consecutive'. 

Qualifying Wage

The 'Qualifying Wage' configuration for 24-hour overtime will calculate overtime for any Employee who has a wage less than the entered 'Qualifying Wage'. Any hours worked over the total hours threshold within 24 hours of each starting punch will be overtime. With this configuration, the hours worked do not need to be consecutive. 

1) Qualifying Wage - Employees with an hourly rate less than this amount will be eligible for 24-hour overtime

2) Total Hours in 24 Hours - The threshold at which additional worked hours will have the Overtime Rate applied

3) Overtime Rate - The multiplier applied to hours worked past the associated threshold

Consecutive

The 'Consecutive' configuration for 24-hour overtime will calculate overtime for all hourly Employees. With this configuration, the hours worked within a 24-hour period must be consecutive to qualify for 24-hour overtime. Consecutive hours are any hours that are separated by less than a specified number of off-the-clock minutes. 

1) Consecutive Hours in 24 Hours - The threshold at which additional worked hours will have the Overtime Rate applied

2) Overtime Rate - The multiplier applied to hours worked past the associated threshold

3) Maximum Mins Between Punches - The maximum off-the-clock minutes between worked hours. If more than this amount of off-the-clock minutes are present between punches, the hours will not be considered consecutive. 

24-Hour Periods

The '24-Hour' overtime type calculates overtime based on a 24 hour period that begins at the first punch of the business day. 

Example:

In this example, an Employee clocks in at a different time each day. With each starting clock-in, the next 24 hours are considered when calculating overtime. 

Applying Locations

To apply a Location to a Rule Group, it will need to be selected from the 'Search Locations' list and added to the 'Applied Locations' list. 

• Important Note: Locations can only be applied to one Rule Group. Locations that have been applied to another Rule Group will not be listed in either the 'Search Locations' or 'Applied Locations' lists.
  
  
• Note: Overtime will be calculated across Locations for an Employee who works at multiple Locations in the same Overtime Rule Group if one of the following is true:
  • The Locations the Employee works at are associated with the same Legal Entity
  • The Locations the Employee works at have the same workweek, regardless of if they are associated with the same Legal Entity
    
    

Adding Locations

Locations can be added to the 'Applied Locations' list in the following ways:

• Drag and Drop
  
  
• Apply All - Click the '+ Apply All' button to apply all available Locations
  
  
  
  
• Select and Add - Select all desired Locations, then click the '+ Apply Selected' button
  
  
  
  
• Individually Apply - Apply individual Locations by clicking the plus sign next to the desired Location
  
  

Remove Locations

Locations can be removed from the 'Applied Locations' list in the following ways:
  

• Drag and Drop
  
  
   
• Remove All - Click the '- Remove All' button to remove all Locations from the 'Applied Locations' list
  
  
   
• Select and Remove- Select all desired Locations, then click the '- Remove Selected' button 
  
  
• Individually Remove - Remove individual Locations by clicking the trashcan icon next to the desired Location
  
  

Creating New Rule Groups

To create a new Rule Group, select 'Overtime Rule' from the '+ Create' button on the Admin page. 

This will open a blank Rule Group sidesheet:

The following fields must be completed before the Rule Group can be created:

• Name
• Al least one of the following overtime settings:
  • Daily
  • Weekly
  • 7th Day Consecutive
  • 24-Hour
• At least one Location applied

When the desired configurations are complete, click to create the Rule Group.  

• Note: If the 'Create Another' checkbox is checked, a new blank Rule Group sidesheet will open after creating the current Rule Group.