How Overtime is Calculated

From your , ,

Applies to , , ,

Overview

When I Work automatically calculates overtime based on weekly and daily thresholds configured by your employer.

Types of overtime

When I Work has the ability to calculate weekly, daily, and daily double overtime. The overtime pay rate multiplier applies to the hourly wage for the position you’re working during the overtime hours.

Overtime typeWeekly overtime
Hourly rate multiplier1.5 times position rate
Default threshold40 hours
When does overtime start over?At the payroll cutoff time on the first day of the week (monthly and bi-monthly pay periods) or on the first day of the pay period (weekly pay periods). The default payroll cutoff time is midnight.
Overtime typeDaily overtime
Hourly rate multiplier1.5 times position rate
Default thresholdDisabled
When does overtime start over?Daily at the payroll cutoff time. The default is midnight.
Overtime typeDaily double overtime
Hourly rate multiplier2 times position rate
Default thresholdDisabled
When does overtime start over?Daily at the payroll cutoff time. The default is midnight.
Overtime type Hourly rate multiplier Default threshold When does overtime start over?
Weekly overtime 1.5 times position rate 40 hours At the payroll cutoff time on the first day of the week (monthly and bi-monthly pay periods) or on the first day of the pay period (weekly pay periods). The default payroll cutoff time is midnight.
Daily overtime 1.5 times position rate Disabled Daily at the payroll cutoff time. The default is midnight.
Daily double overtime 2 times position rate Disabled Daily at the payroll cutoff time. The default is midnight.
Overtime thresholds and payroll cutoff time

Your employer has the option to change the overtime thresholds and payroll cutoff time.

Overtime example

Overtime is calculated based on the hourly wage of the position you’re working for those hours. If weekly overtime and daily double overtime both apply, you’ll be paid at the higher 2x daily double overtime rate.

In the following example, assume that:

  • The weekly overtime threshold is set to 40 hours.
  • The daily overtime threshold is set to 8 hours.
  • The daily double overtime threshold is set to 10 hours.
Example shiftBartender for 8 hours
Pay rate
  • Normal: Bartender rate for 8 hours
Total weekly hours8
Example shiftBartender for 11 hours
Pay rate
  • Normal: Bartender rate for 8 hours
  • Daily OT: 1.5 times bartender rate for 2 hours
  • Daily double OT: 2 times bartender rate for 1 hour
Total weekly hours19
Example shiftServer for 10 hours
Pay rate
  • Normal: Server rate for 8 hours
  • Daily OT: 1.5 times server rate for 2 hours
Total weekly hours29
Example shiftBartender for 8 hours
Pay rate
  • Normal: Bartender rate for 8 hours
Total weekly hours37
Example shiftServer for 8 hours
Pay rate
  • Normal: Server rate for 3 hours
  • Weekly OT: 1.5 times server rate for 5 hours
Total weekly hours45
Example shift Pay rate Total weekly hours
Bartender for 8 hours
  • Normal: Bartender rate for 8 hours
8
Bartender for 11 hours
  • Normal: Bartender rate for 8 hours
  • Daily OT: 1.5 times bartender rate for 2 hours
  • Daily double OT: 2 times bartender rate for 1 hour
19
Server for 10 hours
  • Normal: Server rate for 8 hours
  • Daily OT: 1.5 times server rate for 2 hours
29
Bartender for 8 hours
  • Normal: Bartender rate for 8 hours
37
Server for 8 hours
  • Normal: Server rate for 3 hours
  • Weekly OT: 1.5 times server rate for 5 hours
45

At the end of the week, the employee worked 35 normal hours, 4 daily overtime hours, 1 daily double overtime hour, and 5 weekly overtime hours.

Updated on April 13, 2017

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