Tech Tip: Decoding the Complexity of Overtime In TimeClock Plus

There are many intricacies involved with time and attendance – especially when it comes to the topic of overtime work. Simply put, overtime is working beyond regular hours. It depends on the company, but the most common case is that any employee working over 40 hours in a week should be paid one-and-a-half times more than their regular hourly rate. While putting in extra hours can be a boon for productivity during times of high demand, it can also be a tough concept to understand as different organizations can have complex rules and policies beyond traditional daily and weekly overtime.

If you’re reading this Tech Tip, you probably already know that TimeClock Plus offers comprehensive time tracking and employee scheduling features, allowing businesses to monitor and manage overtime hours effectively. Below is a list of TimeClock Plus’ robust overtime methods:

Breakdown of Overtime Methods

TimeClock Plus provides several overtime calculation tools that can assist organizations with complex overtime needs, such as:

Weekly Overtime – This calculates overtime across each week.

Daily Overtime – This calculates overtime across each day.

Best of Weekly vs. Daily – This calculates overtime across each day and week. If TimeClock Plus finds both, it chooses the one that pays more.

Bi-Weekly Overtime – This calculates overtime across two weeks.

Best of Bi-Weekly vs. Daily – This calculates overtime across each day and then two weeks. If it finds both, it chooses the one that pays more.

Both Daily and Weekly Overtime – This calculates overtime across each day and week. If it finds both, it pays both.

Both Daily and Bi-Weekly Overtime – This calculates overtime across each day and across two weeks. If TimeClock Plus finds both, it pays both.

Special Case Overtime Methods

TimeClock Plus also offers optional add-on overtime methods.

Quad Weekly Overtime – This calculates overtime across four weeks; this method is commonly used for those in public safety such as firefighters and police officers.

Weighted OT – Weighted overtime automatically calculates overtime wages based on the amount worked in each job code.

Salary Not Exempt – This feature will calculate a regular weekly pay rate, including overtime, for a specified employee.

Approaching OT Reports and Widget – This report and widget shows employees who are approaching overtime.

Enhanced Compliance

TimeClock Plus strives to provide its customers with best-of-breed compliance tools, especially when it comes to overtime. For example, California has different rules for defining overtime. These include the following overtime rules:

• The employee crossing a pre-defined threshold (40 hours of the week)
• The employee working on a special job code (e.g. Disaster Relief)
• The employee working on a special day (e.g. holidays)

Similarly, in the state of Nevada, employees may need to use a special daily overtime that allows them to receive daily overtime whenever they work more than 8 hours total in a 24-hour period, starting from when the employee initially clocks in. For instance, if John clocks in at 10am on Monday, and works more than 8 hours between then and 10am on Tuesday, then he qualifies for rolling daily overtime. These are just a couple of unique compliance challenges that organizations face. But with the right tools, remaining compliant can be simple.

Streamlined Overtime Management

TimeClock Plus offers a comprehensive solution for accurate time tracking, payroll processing, and efficient overtime management, providing various robust methods to suit specific needs. With enhanced compliance features and the ability to navigate diverse regulations, organizations can optimize their workforce and achieve greater productivity, making TimeClock Plus a valuable ally in streamlining overtime management.

Learn more about overtime monitoring in TimeClock Plus.