This article is an overview of the Labor Rules found on the Admin page of Smart Ops.
R365 offers a suite of Labor Rules to assist in managing labor compliance. Configuring Labor Rules has the following benefits:
- Proactive alerts when scheduling to help managers avoid overtime and labor compliance violations before schedules are posted
- Increased accuracy in labor reporting by calculating overtime and penalties for both scheduled and actual labor
Important Note: Labor Rules are only a tool to assist in meeting a Location's labor compliance needs. R365's calculations for overtime and penalties are based on the User-configured Labor Rules. R365 does not check User-configured Rules against local labor laws. It is recommended to consult your local legal expert when setting up or adjusting Labor Rules.
Article Topics
- Labor Rules Across Locations
- Labor Rules and Start of Business Day Time
- Labor Rules in Scheduling
- Labor Rules in Actual & Scheduled Labor Reporting
- Labor Rules for Payroll
- Overtime Rule Groups
- Break Rule Groups
- Minor Rule Groups
- Split Rule Groups
- Tip Makeup Rule Groups
- Spread of Hours Rule Groups
- Reporting Time Pay Rule Groups
- Shift Differential Rules
Labor Rules Across Locations
Labor Rules 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, Labor 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 Rule Group for a given Labor Rule, the Rule Group for their Primary Location will be used when calculating that Labor Rule across Locations.
Labor Rules and Start of Business Day Time
Most Labor Rules use 'Business Days' and 'Work Weeks' within R365 for daily and weekly calculations. By default, a 'Business Day' starts at 12:00 am, and a 'Work Week' starts at 12:00 am on the first day of the Operational Week. When a custom Start of Day Time is defined for a Location, a 'Business Day' is the 24-hour period from the custom Start of Day Time, and a 'Work Week' is the 168-hour period from the custom Start of Day Time of the first day of the Operational Week.
A few Labor Rules do not use 'Business Days' and 'Work Weeks' that start at a custom time. Instead, the following Labor Rules always use Calendar Days and Operational Weeks that start at 12:00 am:
- Minor Rules
- Clopening Rules (configured as part of Split Rules)
- Shift Differential Rules
Labor Rules in Scheduling
When configured for a Location, the following Labor Rules will be applied on the Schedule Calendar for the Location:
- Overtime Rules
- Break Rules
- Split Rules
- Spread of Hours Rules
- Shift Differential Rules
- Minor Rules
Users will then receive warnings when creating or publishing shifts, and projected penalties will be included in Scheduled Labor reporting.
Projected Overtime | |
| Hours for Employees with projected overtime will be in red. |
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Projected Penalties | |
| Projected Labor $ and Labor % totals for each day will include the dollar amounts associated with projected penalties |
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Schedule Conflict Warning | |
| When saving a shift, any Rule violations will be listed. The scheduler can then adjust the shift to avoid the penalties or ignore the penalties to save the shift with the violations in place. |
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Publish With Conflicts Confirmation | |
| When publishing a schedule, any Rule violations will be listed. The scheduler can then adjust the schedule to remove violations, or publish with conflicts intact. |
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Labor Rules in Actual & Scheduled Labor Reporting
| Daily Sales Summary | |
| When Labor Rules are enabled, they are applied to Actual DSS Labor on import. |
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| Operations Dashboard | |
| The Labor Trends and OT Performance widgets reflect the DSS. Labor Dollar and Labor % amounts will reflect penalties for configured Rules |
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| Labor Dashboard | |
| The Labor Dashboard provides a deep analysis of Labor trends and performance for one or more Locations. Labor Dollar and Labor % amounts will reflect penalties and overtime from the Schedule, as well as from the DSS. |
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| Labor Break, Split, & Clopening Report | |
| This report shows a count of break penalties and split shift premiums at each Location over a specified date range. |
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| Labor by Employee by Job Report | |
| This report shows all Labor entries for Employees by Job over a specified date range, including rows for break penalties and split shift premiums |
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Labor Actual vs Scheduled Report | |
| The Labor Actual vs Scheduled Report displays the Actual Labor versus the Scheduled Labor for a selected Location and date range. |
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Minimum Wage Adjustment Report | |
| The Minimum Wage Adjustment Report pulls the pay information for each Employee by date, including Pay Rate, Regular Hours, Regular Pay, Overtime Hours, Overtime Pay, and Penalty Pay. |
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Note: For R365 Overtime Rules to be used for calculating overtime for a Location, the 'Overtime Tracking' setting on the associated Location Record must be set to 'R365 OT Rules'
Labor Rules for Payroll
Earnings associated with labor rules that are added to the DSS are included in payroll information.
Workforce
When Workforce is enabled, the following earning types are included when hourly earnings are sent to Workforce from the labor dashboard:
- Overtime
- Break Penalty
- Split Penalty
- Clopening Penalty
- Tip Credit (Tip Makeup)
- Spread of Hours
- Reporting Time Pay
- Shift Differential
R365 Payroll Export
The R365 Payroll Export found on the 'Labor' tab of My Reports includes the following earnings from labor rules:
- Overtime
- Break Penalty
- Split Penalty
- Clopening Penalty
Overtime Rule Groups
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.
R365 overtime calculations can also be calculated for 'Actual Labor' brought in through the DSS for the Location by setting the 'Overtime Tracking' on the associated Location Record to 'R365 OT Rules'.
Overtime Rules can be configured to calculate multiple types of overtime, including Daily, 24-Hour, Weekly, and 7th Day Consecutive.
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 on their Employee Record so that Scheduling and Forecasting are not skewed.
Learn more about Overtime Rules configuration here.
Break Rule Groups
Once Break Rules are created, they are applied to the Schedule Calendar for applied Locations. If an Employee's scheduled hours exceed the Break Rules set for their Location, the Employee's total labor hours will be reduced by the total break minutes per day and/or per shift, depending on the Rule configuration. The total labor hours for the Employee will then be updated to show a more accurate prediction.
If 'Break and Split Penalties' is enabled, penalties associated with violations of the Break Rules can be configured. These penalties are then represented on the Schedule Calendar and Labor reporting.
- Note: 'Break and Split Penalties' is only available for Early Adopters.
Learn more about Break Rules configuration here.
Minor Rule Groups
With this Rule, Users can note both the 'In School' and 'Off School' criteria for minors, so that based on the set date ranges, the scheduler can assign shifts that follow the day and time constraints for minor Employees.
If a scheduler creates a shift that pushes a minor's scheduled hours and/or days over the set time constraints, a warning will appear that explains the Minor Rule violation. Warnings will appear when creating shifts and publishing schedules, as well as in the Manager Queue, when Employees trade or claim shifts that violate these Rules.
Learn more about the Schedule Calendar's Minor Rule Warnings here.
Learn more about Minor Rules configuration here.
Split Rule Groups
Split Rule Groups contain configurations for both split shifts as well as clopening. Split Rules will look at the length of the break between two shifts worked in the same day. Clopening Rules look at the length of the break between two shifts on consecutive days.
When a Location is assigned to a Split Rule Group, the Split Rules and/or Clopening Rules are applied to the Schedule Calendar and Labor reporting for that Location.
Learn more about Split Rules configuration here.
Tip Makeup Rule Groups
Tip Makeup Rules calculate the difference between the minimum wage set on the Rule and the pay from hours worked in tipped Jobs at a single Legal Entity by the Employee for that workweek. If a Tip Makeup earning is owed, this earning is placed on the last day of the week.
Any Tip Makeup earnings will be included in Labor $ and Labor % amounts for Labor Trends, OT Performance, and the Actual vs Scheduled Report. Tip Makeup earnings can be viewed on the Daily Sales Summary when reviewing Labor.
Learn more about Tip Makeup Rules configuration here.
Spread of Hours Rule Groups
Spread of Hours Rules add an additional hour of pay at a configured minimum wage for Employees whose start time and end time for a business day exceed a specified hour threshold.
Learn more about Spread of Hours Rules configuration here.
Reporting Time Pay Rule Groups
Reporting Time Pay Rules will compare an Employee’s actual hours to their scheduled hours. Reporting Time Pay earnings will be added if the Employee’s actual hours do not meet the threshold of minimum hours or percentage of scheduled hours set in the Rule.
Learn more about Reporting Time Pay Rules configuration here.
Shift Differential Rules
Shift Differential Rules will add additional earnings for Employees who work during specific hours of the day. This rule is frequently used by Locations where swing shifts or graveyard shifts are paid an hourly or per-shift bonus.
Learn more about Shift Differential Rules configuration here.