Calculating FLSA

In Advantage HRM, FLSA calculations are performed for the FLSA work cycles that are associated with the pay cycle being run. If the number of hours the employee worked exceeds the maximum number of hours the FLSA work cycle allows, an overtime premium is generated for each hour over the limit. If there is more than one FLSA work cycle in the pay period, the system completes the overtime calculations for the first FLSA work cycle, and then perform calculations for the second FLSA work cycle.

Advantage HRM allows a specific FLSA Start and End time to be established to be used in calculating FLSA hours, defining the processing order for events applicable to FLSA calculations, and defining the maximum number of FLSA event hours to be applied towards the first FLSA work cycle when one FLSA work cycle ends on the same calendar day another FLSA work cycle begins. FLSA eligibility looks at the hours worked between the start day/time and end day/time to determine if the FLSA work cycle period threshold has been reached. When time in/time out functionality is not used, a priority number and maximum number of FLSA hours is used by the system to determine what order events are to be processed when two FLSA cycles are effective on the same day. Any remaining FLSA event hours reported and not included in the first FLSA work cycle are attributed to the second FLSA cycle effective on that same day.

Guaranteed Premium Events

In some cases, a Guaranteed Premium amount may be issued for certain earnings codes, such as Call Back. These events are guaranteed at a rate of time and a half, with the extra half time paid as the Guaranteed Premium Amount. The Guaranteed Premium is paid even if the employee does not qualify for FLSA overtime compensation based on the total number of hours worked in the FLSA period. If an employee earns FLSA premium, any Guaranteed Premium amount earned from hours worked that has already been paid (as a result of Time-To-Gross) to the employee for FLSA eligible events is counted towards the required FLSA premium calculated (during Gross-to-Net). As a result, a comparison must be made between the premium amount generated for FLSA eligible Guaranteed Premium pay events (based on the Guaranteed Premium Event flag on the Pay and Leave Events (EVNT) page) and the calculated FLSA premium amount for the FLSA work period, and a net payment amount is issued for the difference. Refer to Guaranteed Premium Events for additional information.

The following outlines an example of the processing that occurs using the Populate CYCL and WCPC batch job to populate the Work Cycle for Pay Cycle (WCPC) page.

The HRM administrator completes the Work Cycle Pattern reference page (WCPT) with the FLSA End Time 1 set to 11:59.59 AM and runs the batch job to populate the Work Cycle for Pay Cycle (WCPC) page.
Upon successful completion of the batch job, the Work Cycle for Pay Cycle (WCPC) page is populated for Pay Cycle 0001, Pay Cycle From and To set to 01/01/2007 – 01/15/2007, the # of Days will be populated with 7, and the Work Cycle End Time will be set to 11:59:59am.
The Work Cycle Start Time is stored on the Work Cycle for Pay Cycle table, but not displayed online. It will be set to 12:00:00pm. Note: The default value for the Work Cycle End Time is 12:00:00am if not specified.
The HRM Administrator then defines pay events to be included in FLSA calculations with the Event Priority Order fields set.
The HRM Administrator then completes the FLSA and Client Comp Hours (FCHR) reference page to set the Maximum FLSA Cycle Hours to 4, so that the first four FLSA event hours identified on the employee’s timesheet, when two FLSA work cycles are effective, are applied towards the first FLSA work cycle, and any remaining FLSA event hours reported are applied towards the second FLSA work cycle.

When an employee associated to Pay Cycle 0001 submits their timesheet with events and hours on the day where the two FLSA work cycles are effective on the same day, only the first four hours based on Maximum FLSA Cycle Hours, are applied to the first FLSA work cycle calculation and any remaining hours are applied towards the second FLSA work cycle calculation. Note: If the Timesheet Setup (TIMES) page has been set up to allow employees to enter time-in and time-out values on their timesheets, the employee entered time-in and time-out is used for the FLSA work cycle calculation and the Maximum FLSA Cycle Hours defined on the FLSA and Client Comp Hours (FCHR) page is ignored in the FLSA calculation.