FLSA Cycle Setup Guide for Employee Timesheets Configuration and Overtime Calculations

Overview

The Fair Labor Standards Act (FLSA) requires overtime calculations based on specific work cycles that may differ from your regular pay periods. This guide explains how to configure FLSA cycles in Employee Timesheets (ETS) so that time entries automatically calculate FLSA overtime correctly.

What is a FLSA Cycle?

An FLSA work cycle is the period over which overtime is calculated according to FLSA regulations. This cycle:

• Can be different from your regular pay period

• May span multiple pay periods (e.g., a 28-day cycle for firefighters)

• Determines when overtime premiums apply based on hours worked within that cycle

Setup Requirements

Prerequisites

• Employee Timesheets (ETS) module must be installed

• Employees must have payroll records established

• You must know the FLSA cycle requirements for your organization

Two-Step Setup Process

Step 1: Define FLSA Cycle Definitions

Navigation: Human Resources > Reference Tables > Employee Timesheets > FLSA Cycle Setup

This screen allows you to define the different types of FLSA work cycles used in your organization.

Example:

Here's an example of a weekly FLSA cycle:

How Matching Works: This cycle definition would be selected for employees who have:

• FLSA Cycles/Year = 52

• FLSA Cycle Hours = 40.0

When time is posted, the system:

1. Finds this matching cycle definition based on the employee's parameters

2. Calculates which sequential cycle (1st, 2nd, 3rd, etc.) within the pay period each work date falls into

3. Assigns both the cycle code ("FLSA") and cycle number (1, 2, 3...) to timecard records

4. Automatically determines carry-over when a cycle extends beyond the pay period end date

Fields to Configure:

Cycle Code (Required)

• Short text identifier for this cycle definition (up to 8 characters)

• Used to match employees to cycle definitions

• Examples: "FLSA", "WEEKLY", "FIRE28", "MONTHLY"

Cycle Description (Required)

• Meaningful name for the cycle (up to 25 characters)

• Helps identify the purpose of this cycle

• Examples: "Weekly Standard", "Fire 28-Day Cycle", "Monthly Salary"

Cycle Calculation Method Choose how the cycle dates are calculated:

·       P - Pay Period: FLSA cycle matches the Employee Timesheet entry period dates exactly

• Use when: FLSA cycle aligns with your ETS time entry periods

• Example: ETS configured for weekly time entry, employees need weekly FLSA cycles

• Note: Each ETS period = one complete FLSA cycle (resets with each posting)

·       D - Fixed Days: FLSA cycle is a fixed number of days

• Use when: You have a specific day cycle that may not match ETS or payroll periods

• Example: 28-day cycle for firefighters, 7-day cycle with monthly ETS entry

• Additional Field Required: Days Per Cycle (enter the number of days)

• Most flexible option - calculates cycles based on calendar dates

·       M - Monthly: FLSA cycle follows calendar month boundaries

• Use when: Cycle runs from first to last day of each calendar month

• Important: Variable cycle length (28-31 days) may not meet FLSA compliance requirements

• FLSA regulations typically require fixed-length cycles for overtime calculations

• This option is primarily a convenience for sites with alternative overtime calculations

• Automatically uses month start/end regardless of ETS or payroll periods

• Consult your legal/HR compliance team before using this option for FLSA overtime

·       S - Same as Pay Run: FLSA cycle equals exactly one payroll pay run

• Use when: Your payroll pay run is a different length than your ETS entry periods

• Example: ETS periods are weekly, but you pay employees bi-weekly or monthly

• System continues the same FLSA cycle across multiple ETS postings within one pay run

• Result: One FLSA cycle per pay run, regardless of how many ETS periods it includes

• Key difference from "P": "P" creates a new FLSA cycle for each ETS posting; "S" maintains one FLSA cycle for the entire pay run

Days Per Cycle (Required for "D" method only)

• Number of days in the fixed cycle

• Example: 7 (weekly), 14 (bi-weekly), 28 (fire/police)

Cycle Start Date (Required)

• The first day of the first FLSA cycle

• Establishes the pattern for calculating all future cycle start dates

• Example: 05/03/2025 (if cycles start every Sunday, use a Sunday date)

• Important: This date anchors all cycle calculations going forward

Cycles Per Year (Required)

• Number of FLSA cycles in a year

• Must match the number of FLSA Weeks in a Year

• 52 (weekly) as the FLSA rule is OT is paid for any hours worked over 40 hours in a workweek

Hours Per Cycle (Required)

• Expected number of hours in each FLSA cycle

• Must match the employee's "FLSA Cycle Hours" value for the system to use this definition

• Used to calculate overtime thresholds

• Examples: 40.0 (standard weekly) for a FLSA workweek.

Continuous (Optional)

• Check this box to stay in add mode after saving

• Allows you to quickly add multiple FLSA cycle definitions without clicking "Add" each time

• This is a screen convenience feature, not stored in the database

Important Note About Carry-Over: When Employee Timesheets entries are posted, the system automatically determines when to carry hours forward. When an FLSA cycle extends beyond the pay period end date, the system automatically carries hours and amounts forward to the next pay period. This happens based on the cycle calculation and dates, not a configuration setting.

Example Configuration:

Step 2: Configure Employee FLSA Parameters

Navigation: Human Resources > Payroll > Add Employee Payroll Information OR: Human Resources > Payroll > Update Employee Payroll Information

Configuration Process:

1. Select the employee

2. Go to the Payroll tab

3. Locate the FLSA fields and enter:

   • FLSA Cycles/Year: Number of FLSA cycles per year for this employee

     • 52 (weekly cycles)

   • FLSA Cycle Hours: Default number of hours in the employee's FLSA cycle

     • 40 (standard weekly)

4. FLSA Cycle Code - From the dropdown, select the appliable FLSA Cyle code

5. Save the record

Important Notes:

• These values determine which FLSA Cycle Code (from Step 1) will be matched to the employee's time entries

• The system uses these parameters to automatically select the appropriate FLSA Cycle Code when time is posted

• When you save, the system creates a record in the flsa_payroll table

• Configure these parameters for all employees subject to FLSA overtime regulations, regardless of how their time is entered

• Exempt employees (e.g., directors, principals) do not need FLSA parameters configured, even if they use Employee Timesheets

How the System Matches FLSA Cycles:

When you define FLSA Cycle Codes in Step 1, each has:

• FLSA Cycles/Year (e.g., 52 for weekly)

• FLSA Cycle Hours (e.g., 40 for standard week)

When you configure an employee's payroll record with their FLSA Cycles/Year and Hours, the system:

1. Looks for a FLSA Cycle Code in Step 1 that matches those parameters

2. When time is posted from Employee Timesheets, assigns that matching FLSA Cycle Code to the timecard records

3. During Pay Run Processing, calculates FLSA overtime based on the cycle parameters

Setup Tips:

• Configure FLSA parameters when initially setting up employee payroll records

• If most employees use the same cycle parameters, you can set them as defaults

• Use the Update Employee function to change parameters when employees move between groups

• Document which employee groups use which cycle parameters for future reference

How It Works During Time Entry

Once setup is complete:

1. Time Entry: Employees enter time in Employee Timesheets as usual

2. Posting to Payroll: When time is posted from ETS, the system processes each employee and:

   • Reads the employee's FLSA Cycles/Year and FLSA Cycle Hours from their payroll record

   • Matches those parameters to a FLSA Cycle Code from the cycle definitions

   • Calculates which FLSA cycle each work date falls into based on the cycle calculation method

   • Assigns sequential FLSA cycle numbers (1, 2, 3, etc.) to timecard records based on dates

   • Groups regular time by FLSA cycle and calculates total hours per cycle

   • Automatically generates FLSA overtime timecard records when cycle hours exceed the threshold

   • Creates all timecard records (regular time + FLSA overtime) in the database

3. Timecard Display: After posting:

   • The assigned FLSA Cycle Code appears on all timecard records for tracking purposes

   • FLSA overtime timecards are visible alongside regular timecards

   • You can view timecards in Human Resources > Entry & Processing > Payroll > Pay Run Processing

4. Carry Over Storage: When an FLSA cycle is incomplete at the end of a pay period:

   • Hours and amounts are automatically stored in the employee's payroll record

   • Carried forward automatically to the next pay period for that employee

   • Combined with the hours and amount of the first FLSA cycle in the next pay period to complete the cycle

   • Visible in Employee Information (see Viewing Carry Over below)

5. Pay Run Processing: During payroll processing:

   • The system reads the timecard records (including FLSA overtime) that were created during posting

   • It processes them according to your standard payroll rules

   • Includes FLSA overtime amounts in paychecks

Viewing FLSA Carry Over Hours and Amount

Navigation: Human Resources > Entry & Processing > Employee > Employee Information

To view carry over information for an employee:

1. Select the employee

2. Click on the Payroll tab

3. Locate the following fields:

   • Carryover Hours: Displays FLSA hours carried from the previous pay period

   • Carryover Amount: Displays FLSA amount carried from the previous pay period

What These Fields Show:

• These fields contain hours and amounts from incomplete FLSA cycles at the end of the previous pay period

• When "Carry Over to Next Cycle" is enabled for an FLSA cycle, any incomplete cycle at pay period end is stored here

• These values are automatically processed in the first FLSA cycle of the current pay period

• After processing, the system clears these fields until the next carry over situation occurs

Example:

• Employee has weekly FLSA cycles, paid monthly

• Month ends on Wednesday (middle of an FLSA week)

• Monday-Wednesday hours stored in Carryover Hours/Amount

• When next month’s time is posted, those hours combine with Thursday-Sunday to complete the FLSA cycle

• Overtime calculated on the full 7-day cycle, even though it spans two pay periods

Verification Steps

After Setup, Verify:

1. FLSA Cycle Definitions: Review your defined cycles in Human Resources > Reference Tables > Employee Timesheets > FLSA Cycle Setup

1. Confirm descriptions are clear

2. Verify calculation methods are correct

3. Check "days in cycle" values for fixed-day cycles

2. Employee FLSA Parameters:

2. Query a sample of employees in payroll maintenance

3. Confirm FLSA Cycles/Year and FLSA Cycle Hours are configured

4. Verify different employee groups have appropriate parameter values

5. Ensure parameters match available FLSA Cycle Codes from Step 1

3. Carry Over Fields (if applicable):

3. View employees with carry over enabled in Employee Information > Payroll tab

4. After posting time at month/period end, verify Carryover Hours and Carryover Amount populate correctly

5. After processing next period's time, verify carry over fields clear

4. Test Posting:

4. Enter test time for an employee

5. Post the time to payroll

6. View the timecard to confirm FLSA cycle is populated

7. Check that overtime calculations align with FLSA requirements

8. If carryover is enabled, verify incomplete cycles store values correctly

5. Paycheck Worksheet (Simulation):

5. Navigate to Human Resources > Entry & Processing > Employee > Employee Information

6. Search for and select an employee

7. Go to Actions and select "Paycheck Worksheet"

8. This allows you to simulate an employee's pay and verify FLSA overtime calculations

9. Useful for testing FLSA setup without actually posting time or processing payroll

10. Shows how FLSA cycles and overtime will be calculated based on current configuration

Common Scenarios

Scenario 1: Weekly pay with weekly FLSA cycles (Perfect Alignment between ETS Period and Pay Period)

• Create FLSA cycle: Method "D", 7 days, Carry Over = No

• Pay period and FLSA cycle boundaries match exactly

• No carry over needed

Scenario 2: Monthly pay with weekly FLSA cycles (Misalignment between ETS Period and Pay Period)

• Create FLSA cycle: Method "D", 7 days, Carry Over = Yes

• Monthly pay periods will almost always have a partial FLSA cycle at month-end

• Example: If a month ends on a Wednesday, the last FLSA cycle is incomplete

• Hours from that incomplete cycle carry forward to the next month's first FLSA cycle

• Exception: Only in February of non-leap years, if the 1st falls on the same weekday each month, might you avoid carry over

Scenario 3: FLSA cycle matches pay period exactly

• Create cycle with Method "P", Carry Over = No

• System automatically uses pay period dates

• Perfect alignment between ETS and payroll pay period means no carryover

Scenario 4: Firefighters with 28-day cycle and bi-weekly pay periods (Misalignment between ETS Period and Pay Period)

• Create cycle: Method "D", 28 days, Carry Over = Yes

• The 28-day FLSA cycle doesn't align with 14-day pay periods

• Incomplete cycles at pay period end carry forward to next pay period

• System tracks overtime across the full 28-day period, even when split across multiple pay runs

Troubleshooting

Issue: FLSA Cycle Code field is blank on timecards

Possible Causes:

• Employee doesn't have FLSA Cycles/Year and FLSA Cycle Hours configured in payroll record

• No matching FLSA Cycle Code exists for the employee's parameter values

• Time was entered before FLSA cycles were configured Solution:

• Configure employee's FLSA parameters in payroll record and ensure matching cycle code exists in Step 1 definitions

• For time already posted: Use Human Resources > Entry & Processing > Payroll > Pay Run Processing, then "Edit Employee Time" to manually correct each employee's timecards

• For future postings: Ensure setup is correct before posting time from Employee Timesheets

• Tip: Test your initial FLSA setup in a Training or Test database before implementing in Production

Issue: Overtime not calculating correctly

Possible Causes:

• Wrong cycle calculation method selected in FLSA Cycle Code definition

• Incorrect "days in cycle" value in cycle definition

• Employee's FLSA Cycles/Year or FLSA Cycle Hours values are incorrect

• No matching FLSA Cycle Code for employee's parameters Solution:

• Review cycle code definition (Step 1) and employee's FLSA parameters (Step 2), ensure they match and are correct for the employee's work schedule

• For time already posted: Use Human Resources > Entry & Processing > Payroll > Pay Run Processing, then "Edit Employee Time" to manually correct timecards

• For future postings: Correct the setup before posting additional time from Employee Timesheets

• Tip: Use the Paycheck Worksheet (see Verification Steps) to simulate calculations before posting time

Issue: Need to change an employee's FLSA cycle parameters

Solution: Use Human Resources > Payroll > Update Employee to change the FLSA Cycles/Year and/or FLSA Cycle Hours fields

Issue: Carryover Hours/Amount showing unexpected values

Possible Causes:

• Previous pay period had incomplete FLSA cycle (normal if carry over enabled)

• Manual adjustment needed due to posting correction Solution:

• Review the previous pay period's posting to understand why the incomplete cycle exists

• You can directly edit these values in Human Resources > Entry & Processing > Employee > Employee Information on the Payroll tab before running payroll

• Alternatively, use Human Resources > Entry & Processing > Payroll > Pay Run Processing, then "Edit Employee Time" and select the "FLSA Worksheet" action to view FLSA cycles and adjust carry over settings

• Values should clear after next period processing if everything is configured correctly

Frequently Asked Questions

Q: Can an employee have different FLSA cycle parameters for different time periods? A: The system uses the FLSA Cycles/Year and FLSA Cycle Hours from the employee's current payroll record when time is posted. If you need to change parameters mid-year, update the employee's payroll record before posting new time. Historical timecard records retain their originally assigned FLSA Cycle Code.

Q: What happens if I don't configure employee FLSA parameters? A: Time entries will post to payroll, but the FLSA Cycle Code field on timecards will be blank. Standard overtime rules will still apply, but FLSA-specific cycle tracking and overtime calculations won't be available.

Q: Do FLSA cycles affect regular overtime calculations? A: FLSA cycles are specifically for FLSA overtime calculations, which work alongside regular overtime but are calculated separately. Here's how they interact:

FLSA Overtime Calculation:

• When time is posted from Employee Timesheets, the system groups hours by FLSA cycle

• Totals hours within each cycle (including any regular overtime hours configured to contribute)

• When cycle hours exceed the FLSA Cycle Hours threshold, automatically generates FLSA overtime timecard records

• FLSA overtime is calculated as 0.5 × overtime hours × FLSA rate (the "half-time" premium, since regular hours already include the base 1.0 rate)

Pay Code Configuration: In Human Resources > Reference Tables > Payroll > Pay Codes, each pay code has an "FLSA Calculation Type" field that determines whether it contributes to FLSA calculations:

• B - Both: Both hours and amounts contribute to FLSA calculations (recommended for regular time and overtime pay codes)

• A - Amount Only: Dollar amount contributes to FLSA rate calculation when entered as a timecard, but hours don't count toward threshold

  • Common use: Shift differentials, certain bonuses, or premium pays that must be included in the "regular rate" for FLSA calculations per Department of Labor regulations

  • Example: Employee works 50 hours with a $2/hour night shift differential on 30 of those hours. The $60 differential amount increases the FLSA rate calculation, but you don't want to count an additional 30 "hours" toward the threshold (which would incorrectly show 80 hours total)

• D - Dormant: Amount contributes to FLSA rate automatically from the employee's Pay Rate record without requiring time entry (example: longevity bonuses that increase FLSA pay based on seniority)

• H - Hours Only: Hours count toward FLSA threshold but amount doesn't contribute to rate calculation (rarely used)

• N - No: Does not contribute to FLSA calculations

Example Scenarios: If an employee works 50 hours in a 40-hour FLSA cycle, districts can choose how to structure the pay:

Option 1 - Regular overtime contributes to FLSA (FLSA Calc Type = "B"):

• 40 regular hours + 10 overtime hours (time_type="O") + 10 FLSA overtime hours

• Both the regular hours and overtime hours count toward the FLSA threshold

• Results in three separate pay codes on timecards

Option 2 - Regular overtime does not contribute (FLSA Calc Type = "N"):

• 40 regular hours + 10 overtime hours (no FLSA overtime generated)

• Only regular hours count toward FLSA threshold; overtime hours are excluded

• FLSA overtime is not calculated because only 40 hours contribute to the threshold

Option 3 - No separate regular overtime (regular pay code with FLSA Calc Type = "B"):

• 50 regular hours + 10 FLSA overtime hours

• All 50 regular hours count toward FLSA threshold, triggering 10 hours of FLSA overtime

• Simpler timecard structure with just two pay codes

Districts choose which approach based on their pay policies, union agreements, state mandated policies, and how they want overtime structured on paychecks and reports. This flexibility allows you to maintain FLSA compliance while meeting your organization's specific pay rules.

Q: How do I know if I need to check "Carry Over to Next Cycle"? A: Check the box if your FLSA cycle length doesn't evenly divide into your pay period length. Examples:

• Monthly pay (≈30 days) with 7-day FLSA cycles: Yes (30 ÷ 7 = 4 complete cycles + 2 days)

• Bi-weekly pay (14 days) with 28-day FLSA cycles: Yes (28 ÷ 14 = spans 2 pay periods)

• Weekly pay (7 days) with 7-day FLSA cycles: No (7 ÷ 7 = perfect match)

• Bi-weekly pay (14 days) with 7-day FLSA cycles: No (14 ÷ 7 = 2 complete cycles)

Q: Can I change a cycle definition after it's being used? A: Yes, but be cautious. Changes affect future time postings when the system matches employee parameters to cycle codes. Consider creating a new FLSA Cycle Code instead of modifying an existing one if timecard records already reference it.

Q: How do I know which FLSA parameter values to use for an employee? A: Consult your HR or Payroll department to determine FLSA requirements by job classification. The parameters depend on:

• Job type (firefighter: 13 cycles/year, 212 hours; standard: 52 cycles/year, 40 hours)

• Collective bargaining agreements

• FLSA exemption status

• State or local regulations

• Work schedule (weekly, bi-weekly, monthly, 28-day shift cycles)

Additional Resources

• Contact your PowerSchool support representative for assistance with complex FLSA scenarios

• Consult with your legal or HR compliance team for FLSA regulatory requirements

• Review U.S. Department of Labor FLSA guidelines at http://www.dol.gov

Document Version: 1.0
Last Updated: 11/19/2025
Applies To: PowerSchool eFinancePlus Employee Timesheets (ETS) module