Entering FLSA Overtime

The Employee Time page enables you to process FLSA overtime as part of a regular pay run. Under the Fair Labor Standards Act, nonexempt employees are entitled to overtime pay at a rate not less than one and one-half times their regular pay rate for all hours in excess of 40 hours per workweek. This does not apply if the employee's overtime hours include holiday or leave time. Also, the requirements may vary for different employees. For specifics on how the act applies to your employees, check your FLSA guidelines.

Menu Path

From the Human Resources menu, select Entry & Processing. From the Payroll menu, select Pay Run Processing.

Requirements to Create FLSA Timecards

For the system to calculate and create a timecard for FLSA overtime pay, the following conditions must be met:

• A pay code must be set up specifically for FLSA overtime. The system uses this as the pay code for the timecards generated for overtime pay. The pay code's Pay Type field must be set to H - Hourly, its FLSA Overtime checkbox must be selected, and the FLSA Calculation Type field must be set to N - No. Leave the pay code's Rate field set to zero, since the additional rate for overtime (0.5) is automatically used in calculations.

• The pay code assigned to employees for regular pay must have its Pay Type field set to H - Hourly, and its FLSA Calculation Type field set to either A - Amount Only, H - Hours Only, or B - Both. We recommend that you select B - Both.

• In the Payroll Tab of the employee's Employee Information page, the FLSA Cycles/Year field must contain the number of FLSA cycles in a calendar year, and the FLSA Cycle Hours field must contain the number of hours in an FLSA cycle.

• In Pay Run Processing's Employee Time page, you must make a separate entry for each FLSA cycle in the employee's pay period. For example, if the FLSA cycle hours are 40, but the pay period hours are 80, you must set up a line for each FLSA cycle that includes the number of hours worked during the cycle.

• In the Employee Time page's FLSA field, you must identify each FLSA cycle with a sequential integer, starting with 1. However, the same cycle can be used with different pay codes or different budget units within the same pay codes.

For information on the Employee Time page, refer to Adding and Changing Timecards.

FLSA Cycles

An FLSA cycle represents the time span for calculating FLSA overtime. These cycles allow the system to account for differences between the pay period's length and the number of hours in a workweek.

For most employees, an FLSA cycle is 40 hours, which coincides with the workweek provisions that apply to most employees under the federal act. However, since this value can vary for some employees, the length of a cycle is defined individually in the Payroll tab of each employee's Employee Information page (FLSA Cycle Hours field).

Keep in mind that there is no relation between these cycles and the pay cycles defined during pay run setup. Also note that FLSA cycles are only used in the Employee Time page's FLSA field, though they also appear with the calculation results displayed in the FLSA Worksheet page.

Following are examples of when and how to apply FLSA cycles when entering timecard information:

• If a pay period is longer than the FLSA cycle defined in the Payroll tab of the employee's Employee Information page, you must set up separate cycles for each pay code entered in the Employee Time page and divide the pay period's hours between the individual pay codes.
  Example: If a biweekly pay period covers 80 hours, the employee's FLSA cycle is 40 hours, and the pay code for regular pay qualifies for FLSA overtime, set up two timecard lines, one for each FLSA cycle within the pay period. Use the same pay code on each line, enter the hours worked for each cycle, and assign 1 in the FLSA field for the first cycle and 2 for the second.

• If a pay period requires two or more pay codes that qualify for FLSA overtime, you can use the same cycle number for each pay code.
  Example: An employee's time is divided equally between two FLSA-related pay codes and both the pay period and FLSA cycle contain the same number of hours. Enter the hours worked under each pay code, and assign 1 as the FLSA cycle in both cases.

• If more than one pay code applies and a pay period includes more than one FLSA cycle, enter separate lines for each pay code and each cycle.
  Example: An employee is paid under two FLSA-related pay codes in a pay period covering two FLSA cycles. In this case, you would set up four timecard lines, two for each cycle. The system will create separate timecards for each pay code/cycle. However, if you use the View FLSA Time item, you will have the option of carrying over the hours and amount from the second cycle to the next pay run.

FLSA Worksheet Page

After you enter and save a timecard entry for FLSA overtime, you can view the system's overtime pay calculations in the FLSA Worksheet page:

To display the page, click View FLSA Time on the Action Bar after completing your timecard entries in the Employee Time page. If none of the employee's timecard entries have pay codes set up for FLSA calculations or if the FLSA cycle number is zero on all timecard lines, the window does not display. Instead, the following message appears: There is no FLSA Information to display.

The FLSA Worksheet page includes the following sections:

When you first display the worksheet after entering FLSA overtime, you can change the Carry Over section's Hours and Amount fields.

• If either field displays a value greater than zero, then the eligible hours and amount for FLSA overtime are being carried over from a previous pay run. These values will be included in this pay run in the eligible hours and amount for FLSA cycle one.

• When the worksheet page first displays, you can add to or subtract from the values in these fields to either increase or decrease the values for the first FLSA cycle.

• Click OK in the Carry Over section to access the list of FLSA cycle information, which displays timecard calculations based on your entries in the Employee Time page.

• When you initially click OK to save the worksheet information, a confirmation displays asking if you would like to carry over the FLSA hours to the next pay run.
  Click Yes to carry over the eligible hours and amount from the last FLSA cycle displayed. These values are stored in the employee's payroll record for processing during the next pay run. Data from other FLSA cycles will be processed in the current pay run.
  or
  Click No to process the overtime as part of the current pay run.
  After responding Yes or No, you will still be able to access the FLSA Worksheet page. However, you will not be able to change the Carry Over section's Hours and Amount fields, unless you make changes to the employee's FLSA-related information in the Employee Time page.

Calculate FLSA Overtime

1. On the Pay Run Processing page, in the Search Criteria section, enter criteria identifying pay run records, and then click Search. To run an advanced search, use the Advanced button.

2. In the List section, select the pay run where the employee timecards are stored.

3. Click Edit Employee Time.

4. Click Edit.

5. On  the Employee Time page, in the Search Criteria section, enter criteria identifying employees, and then click Sear. The listing includes all employees found in the search, not just those whose timecards were previously loaded.

6. Select an employee, and then click OK to access the Timecard Data section.

7. In the Timecard Data section, keep in mind that if a job class and pay code display, then a timecard was loaded for the employee. In this case, you can adjust the data as needed to account for FLSA overtime. Otherwise, you must enter all timecard data, including FLSA information.

   • If the pay period and FLSA cycle are the same length: Enter the employee's job class and pay code, the number of hours the employee worked, and the hourly rate. In the FLSA cycle field, enter 1.

   • If the pay period is longer than the FLSA cycle: After entering the job class and pay code, enter the number of work hours in the first FLSA cycle, and then enter 1 in the FLSA cycle field. Repeat this for each additional cycle, using next available sequential number.

   • If the FLSA cycle is longer than the pay period: Enter the employee's job class and pay code, the number of hours worked during the pay period, and the hourly rate. In the FLSA cycle field, enter 1.

   • If the employee's time is divided between different pay codes: Identify the appropriate FLSA cycles for each pay code in accordance with the conditions outlined above.

   • If FLSA overtime does not apply to a timecard line: Do not assign an FLSA cycle to this line.

8. If desired, click View FLSA Time to display the FLSA Worksheet page.

9. Click OK to save the timecard record.

10. If FLSA overtime applies, a message will display indicating that FLSA timecards have been generated. This message indicates that the system has generated FLSA timecards using the pay code reserved for FLSA overtime. At this point, you can see the FLSA timecard entries in the Employee Time page.

11. Click OK to close the page and display timecard information for the next employee.