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Administrator Guide
Last Updated: 2024-10-18
Create Standard Overtime Calculations

Create Standard Overtime Calculations

Create standard overtime calculations to pay workers overtime after they work a certain number of hours during a specified period of time, such as a day or a week. When reported hours exceed the threshold you set, Workday creates a separate calculated time block for the overtime.
  1. Access the
    Create Time Calculation
     task.
  2. For
    Calculation Type
    , select
    Standard Overtime Calculation
    .
  3. Define the threshold for overtime.
    Option Description
    Period
    Select 1 time period over which to calculate overtime:
    • Biweekly
      .
    • Configurable Period
      . Select to use a configurable time period. Example: Fiscal, rather than calendar, months. You can configure this value on work schedule calendars
    • Daily
      .
    • Rolling 24 hours
      . See Concept: Rolling 24-Hour Periods.
    • Shift
      .
    • Weekly
      .
    Replace Hours Greater than (value)
    Enter the threshold as a fixed value. Workday calculates any reported hours greater than this value as overtime.
    Replace Hours Greater than (calculated field)
    Select a calculated field to use as a threshold. Workday calculates as overtime any reported hours greater than the value returned by the calculated field.
    Valid calculated fields include any numeric calculated fields on these business objects:
    • Worker
      .
    • Time Week
      .
    • Time Day
       or
      Time Shift
      .
    This field isn't available for calculations based on biweekly periods.
  4. Select 1 or more calculation tags that identify the time blocks that are subject to the calculation.
    • If you select more than 1 tag in a row, time blocks must have all tags in that row to include in this calculation.
    • If you select tags in separate rows, time blocks must have all tags specified in at least 1 row to be included in this calculation.
    To refine the selection criteria, use the
    Advanced
     options.
  5. In the
    Results
     section, select the time calculation tags to add to or remove from the calculated time blocks that exceed the threshold.
    By default, all calculation tags from the existing time blocks copy to calculated time blocks generated by this calculation unless you remove them.
  6. In the
    Time Day Based On
     field select one of these options:
    Option Description
    Calculated Date
    Tags calculated time blocks according to the day breaker.
    Shift Date
    Tags calculated time blocks with the shift date according to the
    Group Time Blocks for Shift Based on
    option on the time entry template.
  7. (Optional) In the
    Advanced
     section, define additional options.
    These options give you greater control over how Workday selects time blocks and applies the results.
    Option Description
    Include Scheduled Hours
    Select to sum a worker's scheduled and reported hours to see if the worker exceeds the overtime threshold (the number in the
    Replace Hours Greater than
     field).
    Example: The weekly threshold is 40 hours. John has 35 scheduled hours, and enters 6 hours. Workday determines that John has 1 hour of overtime.
    This option is useful for workers who enter exceptions only. It requires that workers have a work schedule assigned.
    Use Workday Scheduling Data
    Select to enable Workday to determine a worker's scheduled hours from the Workday Scheduling SKU rather than work schedule calendars from Time Tracking. You must have the Workday Scheduling SKU enabled for this to take effect. This option is only available when you select the
    Include Scheduled Hours
     option.
    Tag Time With Worktags First
    Select to give a higher priority to time blocks with worktags when Workday adds and removes calculation tags.
    Example: Your company pays workers overtime when they work more than 8 hours in a day. On Monday, a worker has a 2-hour time block with a
    Cost Center
     worktag and an 8-hour time block with no worktags. Charge daily overtime to the cost center in the time block that has a worktag.
    If you don't select this option, Workday begins to add and remove time calculation tags as soon as the threshold is met.
    Do Not Modify
    Select calculation tags that Workday shouldn't modify. When Workday adds and removes calculation tags, it will give a lower priority to time blocks that have the calculation tags you select here.
    Example: The weekly overtime threshold is 40. Time blocks with the holiday calculation tag or regular calculation tag are subject to the overtime calculation.
    Do Not Modify
     is set to Holiday. James has 35 hours of regular time and 8 hours of holiday. Workday adds the overtime calculation tag to 3 of the regular hours, leaving the holiday hours unchanged.
  8. In the
    Groups
     tab, add time calculation group snapshots with the appropriate effective dates to specify which workers are eligible for the calculation.
When Workday executes the calculation, it checks each day to see if the threshold is met. Unless you define advanced options, it begins to generate calculation tags chronologically after the threshold is met.
Example: Monthly overtime calculations apply overtime tags to time blocks at the end of the month before time blocks earlier in the month. Daily overtime calculations apply overtime tags to time blocks later in the day before time blocks that are earlier in the day.
Worktags from existing time blocks carry forward to the new time blocks generated by the standard overtime calculation.
Example 1: Overtime after 8 Hours in a Day
Workers earn overtime after 8 hours of work in a day. To define a standard overtime calculation that applies this rule:
  1. Specify the
    Criteria
    .
    Field
    Value
    Period
    Daily
    Replace Hours Greater than
    8
    Time Calculation Tags
    Regular
  2. Define the
    Results
    .
    Field
    Value
    Add Tags
    Overtime
    Remove Tags
    Regular
Susan enters 10 hours of regular time. Workday generates 2 calculated time blocks:
  • An 8-hour time block tagged as
    Regular
    .
  • A 2-hour time block tagged as
    Overtime
    .
Example 2: Overtime Calculations with Day Breaker
At Vincent's company, a daily overtime calculation applies when employees enter more than 8 worked hours in a day. Vincent enters a time block from 6:00 PM to 6:00 AM. If his day breaker falls within that worked time block, the day breaker splits the time block, and the overtime calculation applies to the resulting calculated time blocks. Possible calculated overtimes include:
If Vincent's Day Breaker is:
First Calculated Time Block
Second Calculated Time Block
Calculated Overtime
9:00 PM
6:00 PM - 9:00 PM
9:00 PM - 6:00 AM
1 hour
Midnight
6:00 PM - 12:00 AM
12:00 AM - 6:00 AM
No overtime
Noon
6:00 PM - 6:00 AM
N/A
4 hours
  • Assign time calculation priorities.
  • For biweekly overtime calculations, specify a biweekly calculation start date on the work schedule calendars to which the calculation applies.