Issue/Symptom/Question

What is the automatic overtime rule assignment rules?

Applies To

PENTA for Windows

Payroll > Setup > Overtime Rules

Resolution/Fix/Answer

Overtime Rule assignment Hierarchy:

1. Employee – use this level for exception situations where special overtime requirements apply to an individual employee. Rules at this level have precedence over rules at all other levels. During payroll processing, if PENTA does not find an overtime rule assigned to the employee, it checks for rules at the next appropriate level,  Payroll Class for non-job related hours and Job for job-related hours.  If PENTA does find a rule assigned to the employee, the parameters of the rule apply regardless of which job, payroll class, or pay group pertain to the employee.
   
   
2. Job – use this level when employees in the same payroll class work on jobs in multiple locations and those locations have differing overtime requirements. Rules at this level have precedence over rules at the payroll class and pay group levels. During payroll processing, if PENTA does not find an overtime rule assigned to the employee and the timecard hours are for a job, it checks the job level for overtime rules. Otherwise, PENTA checks the payroll class level next.
   
   
3. Payroll Classes – use this level when employees in a payroll class are subject to the same overtime requirements regardless of the location in which they work (PENTA uses the home local rules regardless of existing union reciprocity). Rules at this level have precedence over rules at the pay group level. During payroll processing, if PENTA does not find an overtime rule assigned to the employee or the job, it checks the timecard payroll class. If rules are not found at the payroll class level, PENTA checks the pay group level.
   
   
4. Pay Group – use this level when employees in a payroll class belong to different pay groups and overtime requirements differ by pay group work jurisdiction. If PENTA does not find overtime rules at the previous levels, rules at the pay group level apply.

If rules are not found at any level, automated overtime does not apply.

Note - manual override of the Hours Type (Regular, P1, P2) at a timecard level takes precedence over the overtime conversion rules hierarchy above. This will not work if you enter a 0 for P1.

Note - there is no special behavior for overtime when union reciprocity exists. The standard overtime hierarchy applies.