Double-time Calculations for FLSA and Alternative Overtime Employees

The system calculates double-time pay based on a combination of options that are set on the Job
Data Table, the Company Table, and the Alternative Overtime State Table. These settings work
together and your outcome can vary based on what is selected in the three tables.
On the Job Data Table (Job Information page), the system considers the FLSA Status setting.
 If Nonexempt is selected, then the system allows a calculation of FLSA only after the employee
reaches 40 hours. The system looks at the Company Table to determine the FLSA rule to use.
 If Alt OT (alternate overtime) is selected, then the system ignores the 40-hour threshold and
looks at the Alternative Overtime State Table to determine if the employment state is listed.
Image: Calculations for FSLA status of Non-Exempt on the Job Table
This diagram illustrates how the system calculates double-time based on options that are set on the
Job Data Table, the Company Table, and the Alternative Overtime State Table.

For FLSA nonexempt employees, the system considers the FLSA rule specified on the Company
Table (Default Settings page).
 If the FLSA Required check box is selected and Higher of FLSA/Contractual is specified, then
the system calculates the hourly rate times 2.0 for any hours over 40.
 If the FLSA Required check box is selected and Always uses FLSA Premium is specified, then
the system calculates the FLSA rate times 1.5 for any hours over 40.
 If the FLSA Required check box is not selected, then the system calculates the hourly rate times
2.0 for any hours over 40.
Image: Calculations for FLSA status of Alternate Overtime on the Job Table
This diagram illustrates how the system calculates double-time for FLSA nonexempt employees
based on the FLSA rule that is specified on the Company Table (Default Settings page).

For Alternative Overtime employees, the system determines if the employment state is listed on the
Alternative Overtime State Table page.
 If the state is listed, then the system allows the Premium Calc (FLSA) to be calculated on double
time and uses the multiplication factor in the earnings setup to calculate the alternate rate of
pay.
 If the state is not listed, then the system uses the FLSA rule that is set on the Company Table.
Examples for Hourly Employee with Fixed FLSA Period Rule
The following table lists calculations for 5 double-time hours based on a regular 40-hour week at a
standard rate of 10.00 USD per hour and a $100.00 bonus.

Example FLSA Rule on FLSA Status State Listed Rate Used Rate Amount Overtime
Company Table on Job in Alt OT USD Calculation
Table State Table Amount USD
1 Higher of FLSA/ Non Exempt NA Hourly Rate 20.000000 100.00
Contractual
2 Always Use Non Exempt NA FLSA 12.222222 80.56
FLSA Premium
3 Higher of FLSA/ Alt OT Yes Alternative 12.2222222 111.11
Contractual Rate
4 Always Use Alt OT Yes Alternative 12.222222 111.11
FLSA Premium Rate
5 Higher of FLSA/ Alt OT No Hourly Rate 20.000000 100.00
Contractual
Example FLSA Rule on FLSA Status State Listed Rate Used Rate Amount Overtime
Company Table on Job in Alt OT USD Calculation
Table State Table Amount USD
6 Always Use Alt OT No FLSA 12.222222 80.56
FLSA Premium

Rate for FLSA/ALT OT: 40 (Regular) Hours x 10.00 USD (Standard Rate) =
400.00 USD 5 (Double Time Hours) x 10.00 USD (Standard Rate) = 50.00 USD
Bonus= 100.00 USD Subtotal = 550.00 USD 550.00 USD/45 Total Hours =
12.22222 USD
Example 1
On the Job Table the employee has an FLSA status of Non Exempt, and on the Company Table the
rate to use is Higher of FLSA/Contractual.
5.00 hours x 20.00 USD (10.00 USD x 2.0) = 100.00 USD is higher than (5.00 hours x 10.00 USD) +
(5.00 x 12.222222 x .5) = 80.56 USD.
The system will pay the employee 100.00 USD of overtime pay.
Example 2
On the Job Table the employee has an FLSA status of Non Exempt, and on the Company Table the
rate to use is Always Use FLSA Premium. The system uses the Federal FLSA Rule which is based
on 1.5 times the employee’s hourly rate.
(5.00 hours x 10.00 USD) + (5.00 x 12.222222 x .5) = 80.56 USD.
The system will pay the employee 80.56 USD of overtime pay.
Examples 3 and 4
The state is set up in the Alternative Overtime State Table and on the Job Table the employee has
an FLSA status of Alt OT. Therefore the system uses the Multiplication Factor in the Earnings Table
to determine the rate calculations regardless of whether the Company Table is set to Always Use
FLSA Premium or Always Use FLSA Premium. In this example, the Double Time earnings code is
set up with a multiplication factor of 2.0. The Category for FLSA has regular pay included. This
means the employee will get the Premium Calc (FLSA) on anything over 1.0 (regular pay).
(5.00 hours x 10.00 USD) + (5.00 x 12.222222 x 1.0) = 111.11 USD
The system will pay the employee 111.11 USD of overtime pay.
Example 5
On the Job Table the employee has an FLSA status of ALT OT, but the employee’s state is not listed
in the Alternative Overtime State Table. With this setup, the employee does not need to meet the 40-
hour threshold to obtain an Alt OT calculation. The system bases the calculation on the Standard
Federal FLSA calculation routine. The system looks at the Company Table and sees that the rate to
use is the Hiigher of FLSA/Contractual.
5.00 hours x 20.00 USD (10.00 x 2.0) = 100.00 USD is higher than (5.00 hours x 10.00 USD) + (5.00
x 12.222222 x .5) = 80.56 USD.
The system will pay the employee 100.00 USD of overtime pay.
Example 6
On the Job Table the employee has an FLSA status of ALT OT, but the employee’s state is not listed
in the Alternative Overtime State Table. The same as in example 5, with this setup, the employee
does not need to meet the 40-hour threshold to obtain an Alt OT calculation. The system bases the
calculation on the Standard Federal FLSA calculation routine. However, in this example the system
looks at the Company Table and sees that the rate to use is Always Use FLSA Premium. The
system limits the overtime calculation to Federal rules of 1.5.
(5.00 hours x 10.00 USD) + (5.00 x 12.222222 x .5) = 80.56 USD
The system will pay the employee 80.56 USD of overtime pay.