Daily Overtime vs. Weekly Overtime

[wilito92]

Hi,

In my case, whenever an employee exceeds 40 hours in a week I need to pay at a double rate, the excess of time over 40 hours. So if an employee works 43 hours in a week, I have to pay the employee 40 hours of regular time and 3 hours of overtime at double the rate.

However, when an employee works more than 8 hours a day, I have to pay the excess of the 8 hours at time and a half. So if the employee works 9 hours per day, I pay the employee 8 hours of regular time at the default wage and one hour at time and a half (1.50 rate).

Now, my situation is when both cases happen in a week. When these cases happen, the way it's handled over here is that only one overtime policy is applied. Let's say an employee works 43 hours in a week but during that week he worked 10 hours on 2 days. You have 2 days that the employee worked overtime (Daily Overtime Policy - 8 Hours) but you also have 43 Hours (Weekly Overtime Policy - 40 Hours). In cases where this happens, only the Weekly overtime policy applies. So we only pay the employee 3 hours of overtime at double the rate. The overtime hours that the employee worked per day are paid at the default wage and NOT at time and a half (1.50 rate). The reason why it is done this way is because paying both (Weekly and Daily Overtime) it's like paying those extra hours multiple times.

However, if an employee only works 37 Hours a week and two of those days the employee worked 10 hours, then those 4 hours of daily overtime are paid at time and a half (1.50 rate) because the Weekly Overtime was not reached (40 Hours a week).

What would be the proper way to manage this using Time Trex?

Thanks,

W. Maldonado

[shaunw]

TimeTrex overtime policies only take into account regular time, so if you have a daily overtime policy after 8hrs/day, the most regular time in a day that you can have is 8hrs, so when it comes to calculating weekly overtime, only regular time is used and therefore it ignores any daily overtime that was calculated throughout the week.

[wilito92]

If I understood correctly, what you are saying is that the Weekly Overtime Policy prevails before the Daily Overtime Policy, when both policies are active to the same employee when regular hours are exceeded?

Example: if the employee works 44 hours a week and during two days the person worked 10 hours, time trex will only take into consideration 4 Hours of Weekly Overtime and will discard the daily overtime hours? It will pay 40 hours at the default rate and 4 hours at the Overtime Rate? Is this correct?

Thanks,

W. Maldonado

[shaunw]

Its the other way around, daily overtime is calculated before weekly overtime. So if you have overtime policy active after 8hrs/day, and a weekly one active after 40hrs/week, the employee would need to work more than 5 days per week for weekly overtime to be calculated.

Assuming that, here are some examples:

Day: Regular Time-Overtime=Total Time

Mon: 8-0=8
Tue: 8-0=8
Wed: 8-0=8
Thu: 8-0=8
Fri: 8-0=8
Sat: 0-8=8
Sun: 0-8=8
-------------------------
The employee never worked more than 8hrs in one day, so weekly overtime is calculated due to Sat/Sun being over 40hrs.


Mon: 8-0=8
Tue: 8-0=8
Wed: 8-0=8
Thu: 8-2=10
Fri: 8-2=10
Sat: 0-0=0
Sun: 0-0=0
-------------------------
The employee worked 44hrs in the week, but on Thu and Fri they worked 10hrs, so 2 of those hrs on each day went to daily overtime, and therefore no weekly overtime is calculated, because the regular time in the week does not exceed 40hrs.

Mon: 8-0=8
Tue: 8-0=8
Wed: 8-0=8
Thu: 8-2=10
Fri: 8-2=10
Sat: 0-8=8
Sun: 0-0=0
-------------------------
In this case, the employee worked 10hrs on Thu,Fri 2 of which went to daily overtime, but they also worked 8hrs on Sat, which is all overtime based on the weekly overtime policy, because the regular time for the week exceeded 40hrs.

Overtime policies are exclusive to one another, so TimeTrex never calculates overtime on top of overtime. This is why regular is only ever used in the calculation.

[wilito92]

Hi,

I decided to take a few screenshots of how I have my overtime policies and policy groups are setup so you can take a look and perhaps point me in the right direction.

1. Daily Overtime Policy:


2. Weekly Overtime Policy:


3. Policy Group Setup (For the Testing Account):


4. Example TimeSheet based on TimeTrex Calculations:


As you can see in this example, the employee worked a total of 52 hours during that week. In Puerto Rico that time card is calculated by paying the employee 40 hours at the regular rate and 12 hours at the overtime rate (Double Rate).

Time Trex calculated a total of 40 hours of Regular time, 8 hours of Weekly Overtime and 4 Hours of Daily Overtime. Here in Puerto Rico, this case does not apply.

How can I modify my policies to work as I intend them to work?

Thanks,
W. Maldonado

[shaunw]

If I understand your situation correctly, its not supported in TimeTrex at this time. Daily overtime takes precedence over weekly overtime, whereas what you described is the other way around.

[wilito92]

Hi,

I am once again looking into TimeTrex to automate our time and attendance system. We are still using time cards because we can't find a reliable software that can handle the needs of how Puerto Rico's labor law is handled.

To this effect, I am asking if this feature has been implemented or if there is a workaround to what I am wanting to achieve within TimeTrex.

Please let me know,

W. Maldonado

[shaunw]

Nothing has changed in the this regard. Do you have a link to the exact government regulation that describes this scenario in detail? It seems quite strange and there are many corner cases/loop holes that need to be considered too.