This article explains the various policy options that the Timesheets Manager Excel template can handle, with examples.
With all the settings and options (discussed in Step by Step User Guide, the template supports numerous combinations of policies that can be implemented easily. Now, let us choose some common overtime policies and see how we can implement them in the template.
To illustrate this, we will use the following example employee:
Employee worked the following hours in a work week.
- Mon 8 hrs
- Tue 13 Hrs
- Wed 9 Hrs
- Thu 7 Hrs
- Fri 13 Hrs
- Sat 13 Hrs
- Sun 14 Hrs
Single Tier policy
This is straight forward. All the time worked are given same pay rate. There are no overtime policy as such.
We just enter the name of the tier and the hourly rate. In the image above, we have entered $10.00 per hour for Regular time.
The Policy Text is automatically created based on our inputs above.
All the hours worked get labelled as Regular time at $10 per hour and the employee gets paid $770 for the 77 hours of work.
Two time-tiers with no Weekly Limit
In this scenario, we have Regular and Overtime pay. We have a daily limit for Regular time.
Employee will earn at REGULAR rate of 10 for the first 8 hours in a day. Employee will earn at OVERTIME rate of 15 for hours worked after 8 hours in a day.
Work done during weekends will be charged at OVERTIME rate.
This time, the employee earns for Overtime for any hours worked beyond 8 hrs in a day. Also, Sun being a weekend (marked with a W) all the 14 hours worked on that day counts as Overtime.
The employee gets paid $920 for the 77 hours of work.
Two time-tiers with Weekly Limit
In this scenario, we have Regular and Overtime pay. We also have daily limit and weekly limit for Regular time.
In the above example,
Employee will earn at REGULAR rate of 10 for the first 8 hours in a day. Employee will earn at OVERTIME rate of 15 for hours worked after 8 hours in a day.
Employee will earn at OVERTIME rate of 15 for hours worked after 40 non-overtime hours in a week.
Work done during weekends will be charged at OVERTIME rate.
The main difference between this and the previous use case is that the employee crosses 40 hours of regular work time for this week on Saturday. After completing 39 Regular hours from Mon to Fri, the employee works 13 hours on Saturday.
1 hour of this 13 hours will be counted as Regular time, while the remaining 12 hours as Overtime.
Overtime Pyramiding: http://simasgovlaw.com/media/blog/overtime-pyramiding-california/
The employee gets paid $955 for the 77 hours of work.
Three time-tiers with no Weekly Limit
In this scenario, we have Regular, Overtime and Double Overtime pay. We have a daily limit for Regular time and Overtime.
The names of these time tiers can be changed as you need.
Employee will earn at REGULAR rate of 10 for the first 8 hours in a day. Employee will earn at OVERTIME rate of 15 for hours worked after 8 to up to 12 hours in a day. Employee will earn at DOUBLE OVERTIME rate of 20 for any work beyond 12 hours in a day.
Work done during weekends will be charged at OVERTIME rate.
Here, the employee gets Double Overtime pay for any hours worked beyond 12 hrs in a day. Hence, for the three days when the employee worked 13 hrs each, that 13th hour is assigned as Double Overtime.
The employee gets paid $935 for the 77 hours of work.
Three time-tiers with Weekly Limit
In this scenario, we have Regular, Overtime and Double Overtime pay. We have a daily limit for Regular time and Overtime. We also have a weekly limit for Regular time.
Employee will earn at REGULAR rate of 10 for the first 8 hours in a day. Employee will earn at OVERTIME rate of 15 for hours worked after 8 to up to 12 hours in a day. Employee will earn at DOUBLE OVERTIME rate of 20 for any work beyond 12 hours in a day.
Employee will earn at OVERTIME rate of 15 for hours worked after 40 non-overtime hours in a week.
Work done during weekends will be charged at OVERTIME rate.
The employee crosses 40 hours of regular work time for this week on Saturday. After completing 39 Regular hours from Mon to Fri, the employee works 13 hours on Saturday.
1 hour of this 13 hours will be counted as Regular time, and next 11 hours will count as Overtime while the last 1 hour will be Double Overtime.
The employee gets paid $970 for 77 hours of work.
Three time-tiers with Weekly Limit and Seventh Day Policy
Let us do one more scenario where the Seventh Consecutive Work day in Week policy applies.
Now, the employee earns more on the 7th consecutive day of work in the week. On Sunday, employee earns first 8 hours as Overtime and the remaining 6 as Double Overtime.
The employee totally earns $1000 for 77 hours of work.
Resources
https://www.dir.ca.gov/dlse/FAQ_Overtime.htm
http://simasgovlaw.com/media/blog/overtime-pyramiding-california/