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.

When a pay event with the Include Event in FLSA Calculation set as Optional on Pay and Leave Events (EVNT) reference page is reported by an employee, the Gross-to-Net (GTN) process performs a lookup against the FLSA Optional Events (FLOE) reference page to determine if an entry exists on the page for the employee’s organizational values (Home Department, Home Unit and Union Local), FLSA Profile and the reported pay event. If a match is found GTN evaluates the associated Condition Event. If the Condition Event meets the Condition Threshold, based on the Evaluation Period defined on FLOE reference page, the hours for the Include in FLSA Event is counted towards the FLSA threshold to generate a FLSA premium payment. In addition, if the Apply % FTE to Threshold check box is selected, GTN adjusts the FLSA threshold based on the employee's Full-Time Equivalent (FTE) percentage.

When the Built-in Pensionable Premium Overtime check box is selected on the FLSA Profile (FLPR) reference page, the Gross-to-Net (GTN) process calculates total pensionable hours for the FLSA work cycle by summing all hours worked for regular pay events (events where the Overtime Event Type ID field on the Pay and Leave Events (EVNT) reference page is blank). Built-in pensionable overtime hours are determined by subtracting the Number of FLSA Maximum Regular Hours defined on the FLSA and Client Compensation Hours (FCHR) reference page from the total pensionable hours. If the result exceeds the Built-In Overtime Pensionable Hours defined on the FCHR reference page, the overtime hours are capped at the Built-In Overtime Pensionable Hours. GTN generates built-in pensionable premium overtime earnings using the Built-in Pensionable Pay Type specified on the FLPR reference page. Additionally, when the Use Calculated Salary Rate for Built-In Pensionable Premium check box is selected on the FLPR reference page and the 56 Hour pay class flag is selected on the Pay Class (PYCL) page, GTN calculates the Built-in Pensionable Premium Overtime pay rate using the Calculated Salary amount and the pays included in the calculated salary. After calculating built-in pensionable premium overtime earnings, GTN calculates other premium overtime hours by subtracting the Number of FLSA Maximum Regular Hours and the pensionable overtime hours from the total FLSA eligible hours worked during the FLSA work cycle.

When the FLSA Compensatory Time Off Processing Feature ID is enabled on the Offline Process Configuration (OPROC) reference page, the Gross-to-Net (GTN) process utilizes the FLSA Straight and Premium Events (FLSP) reference page to determine whether the generated overtime is paid out or accrue leaves. If an employee reports a pay event that is FLSA eligible and has the Overtime Event Type ID set to Leave Accrual on the Pay and Leave Events (EVNT) reference page, GTN backs out the hours reported using the Straight Pay Offset Event and generates leave accruals at straight rate using the Straight Compensatory Time Off Accrual Event and the premium rate using the Premium Compensatory Time Off Accrual Event set in the FLSP reference page for each pay event entry. If an employee is FLSA exempt (identified by the FLSA Exempt flag on the FLSA Profile (FLPR) reference page for the FLSA Profile associated with the employee), they will only accrue leave at the straight rate. The GTN process also calculates an employee’s Compensatory Time Off leave balance by reviewing employee’s leave categories that has an entry on the Compensatory Time Off Cap Include Category (FLIC) reference page. Any of the employee’s leave categories has an entry on the FLIC reference page are added to calculate the employee’s Compensatory Time Off leave balance. If an employee's Compensatory Time Off leave balance exceeds the Compensatory Time Off Cap Threshold defined on the FLPR reference page, the employee's leave balance that exceeds the defined cap is paid out using the associated Straight Compensatory Time Off Adjustment Event or Premium Compensatory Time Off Adjustment Event code defined on the FLSP reference page to adjust the leave balance back to the defined threshold. The Compensatory Time Off Adjustment Payout Order on the FLIC reference page is used to determine the priority in which the leave balance is paid out. The GTN process creates a negative entry to adjust the employee’s leave balance back to the defined threshold. Each adjustment is assigned a unique Transaction ID, formatted as a Prefix, Date, and Sequence Number. The Transaction ID Prefix and Date Format is sourced from Configuration Text Field 6 and Configuration Text Field 7 of the FLSA Compensatory Time Off Processing Feature ID on the OPROC reference page. If an employee reports a pay event that is FLSA eligible and has the Overtime Event Type ID set to Payment on the EVNT reference page, GTN will pay overtime at straight rate and premium rate using the Premium Pay Event set on the FLSP reference page. The overtime will be paid out at the full FLSA rate for half of the FLSA eligible hours. For example, if the employee reports 2 hours of overtime and their FLSA rate is $25, they will receive an overtime payment for 1 hours at a pay rate of $25 an hour.

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.

When the FLSA Compensatory Time Off Processing Feature ID is enabled on the Offline Process Configuration (OPROC) reference page, and the total hours reported by an employee for a FLSA work period is over the FLSA threshold, the Gross-to-Net (GTN) process determines the hours over the FLSA threshold covered by the Guaranteed Premium Payment and subtracts the Guaranteed Premium Hours from the total hours worked over the FLSA threshold. The remaining hours are used to calculate FLSA Premium. The remaining hours are split over the overtime events entered on the timesheet to calculate the amount of each premium payment. Premium payments are calculated based on the event’s FLSA Priority Number defined on the Pay Policy Event Type (PPET) reference page, until all hours are accounted for using the Premium Pay Event from the FLSA Straight and Premium Events (FLSP) reference page. After determining the remaining hours, GTN subtracts the Overall Net Payment Owed from the Total Overtime Premium Payments to determine the Adjustment Amount. The Adjustment Amount is prorated over the Guaranteed Premium Events based on the hours entered, where Guaranteed Premium Events are events with the Guaranteed Premium checkbox selected on the PPET reference page. Two pay detail records are generated for each Guaranteed Premium Event, one for the payment at the straight rate with Effective Date as Timesheet Event Date and one for the additional net payment generated with Effective Date as FLSA Period End Date.