Objective
After completing this lesson, you will be able to handle overtime compensations.
Overtime Compensation with Time off in Lieu
Some companies choose time off in lieu of overtime compensation for employees who work extra time with an entitlement of paid leave in addition to the regular leave that employees are entitled regularly or annually. This type of compensation is a common compensation method in the U.S. where companies compensate employees for time worked in excess of their regular working time.
There are nine configuration steps to support Overtime Compensation with Time off in Lieu.
Step 1: Create Time Account Type for Time off in Lieu (Time Off)
To create a new time account type, follow these steps:
Go to Manage Data and then create a time account type.
Specify a unique External Name and External Code for the time account type.
Set the Payout Eligibility to Not Eligible.
Select Unit with Hours.
Select Account Creation Type as Permanent.
Step 2: Create Time off in Lieu Time Accounts for Employees (Time Off)
After creating the new time account type for TOIL, create a new Time off in Lieu time accounts for all employees who are eligible for TOIL. In Time Off, go to the Manage Time Off Calendars→Account Creation→New Calendar, and select Change Scenario with Account Creation and Account TypeTime Off in Lieu (TOIL).
Then select the new created job to Run.
Step 3: Create Time Types for Time off in Lieu
To create a new time type, follow these steps:
Go to Manage Data and then create the time type.
Specify a unique External Name and External Code for the time type.
Select Unit with Hours.
Assign the new time account type created in step 1 under Time Account Type.
Step 4: Assign Time off in Lieu in Employee Time Profiles
To change a time profile, follow these steps:
Go to Manage Data→Take Action→Make Correction, and then create a time type.
Assign the new time account type created in step 1 under Time Account Type for Time Off in Lieu.
Add the time type for Time Off in Lieu created in Step 3: Create Time Types for Time off in Lieu, in the Available Time Type section of the time profile.
Step 5: Create Time Type Groups for Overtime Compensation
To create the overtime and premium time type groups required to support the valuation of employee overtime compensation, follow these steps:
Go to Manage Data, and then create a time type group.
Assign Valuation Result Category as either Overtime Base or Overtime Premium.
Note
This field is required if you want to convert time valuation results for calculated overtime to time off in lieu overtime compensation. The Valuation Result Category field determines if the time type group holds overtime base or overtime premium. There's no conversion of calculated overtime to time off in lieu by the system is maintained and all overtime time valuation results are paid out to the employee.
Assign a value to Valuation Result Factor.
Note
In this field, specify the factor used to convert time valuation results for calculated overtime to hours of time off in lieu, entering a positive value above zero and a basic hourly rate, requiring a 1:1 conversion.
Here are examples of the overtime and premium time type groups.
Step 6: Create Time Valuations for Overtime Compensation
The time valuation rules are required for deriving time valuation results for all required components of overtime compensation, including all base pay and premium components that are applied to an employee's overtime.
Create these time valuations as shown in the preceding figure and assign the time type groups created in the step 5 in these new time valuations.
Step 7: Create Time Recording Profiles for Overtime Compensation
Create new time recording profiles and assign the time valuations for overtime compensation you created in Step 6 to these new time recording profiles.
Step 8: Activate Default Overtime Compensation Variant on Job Information
You must change role-based permission settings to grant users assigned to the Employee Self Service, Manager, and HR Role roles view or maintenance permissions for the Default Overtime Compensation Variant field within the Time Information section of the employee Job Information. Then, activate the Default Overtime Compensation Variant field within the employee Job Information. For detailed information, refer to the Configuring and Setting Up Time Sheets unit.
There are three options for Default Overtime Compensation Variant:
Payout: All time type groups of Valuation Result Category in either Overtime Base or Overtime Premium are converted into time pay types and are paid out through payroll to the employee.
Payout and Time Off: The time type groups of Valuation Result Category in Overtime Base are converted into time pay types and paid out. The time type groups of Valuation Result Category in Overtime Premium are converted to time off in lieu of overtime pay and posted to employees’ time off in lieu time account.
Time Off: All time type groups of Valuation Result Category in either Overtime Base or Overtime Premium are converted to time off in lieu of overtime pay and posted to employees’ time off in lieu time account.
Step 9: Maintain Relevant Fields for Employees Who are Eligible for Overtime Compensation with Time off in Lieu
For employees who are eligible for overtime compensation with Time Off in Lieu, update each employee’s Job Information by assigning time profile, time recording profile created in previous steps, and by maintaining the Default Overtime Compensation Variant.
Employees for whom the Default Compensation Variant are assigned with a Payout and Time Off or Time Off, can view Time off in lieu information through Time Sheet and Time Off.
When employees submit their time sheet, the standard submission pop-up screen shows the number of hours of overtime for that time sheet week that is posted to their time off in lieu time account.
In Manage Time Off, a time administrator has access to detailed information on time off in lieu time account postings.
Working Time Accounts
Working time accounts are used to record variations from an employee's standard working time and calculate the balance of time that employee worked in excess or short of the schedule time by comparing employee’s record working time with their work schedule. The balance of working time account is used to offset any difference when the employee works less than schedule hours.
Working Time Accounts: Example
An employee who works five days and eight hours per day, worked a total of 49.45 hours in the first week resulting in 9.5 hours being posted to the working time account.
In the second week, Selma Miller recorded four hours of Minus Hours absence, taking four hours out from the working time account balance.
The absence record in Time Off is shown in the preceding figure.
Selma also worked a total of 36 hours in the week. As a result, she was paid four hours of absence and 36 hours for the week.
In summary area, it shows 36 hours of regular pay, four hours of absence, and 5.45 hours as a working time account balance.
Configure Working Time Accounts
Steps
Create a time account type that you can use to post data to a working time account. This time account type can't be a time account type you already use for time off in lieu (TOIL).
Create one or more time types that you want to use to post data to a working time account. The data is composed of the differences calculated as time valuation results for one or more Time Type Groups with the category Calculated Time. Employees can then use this time type to enter absence requests in Employee Central Time Off to deduct time from the balances on the working time account.
Create a Working Time Difference time type group that is used to store the calculated balance in a time sheet valuation. The instruction for the creation is described earlier under Define Time Type Groups.
Create a Paid Absence time type group that includes the absence time type deducting from working time account.
Create time valuation by using the Valuation Type, Difference Between Threshold, that includes working time, overtime, paid holidays, and paid absence time type groups.
It's possible to schedule an automated periodic update of time accounts to process working time accounts automatically or time off in lieu accounts at the end of a configurable period. The update then carries out a specific predefined action without you having to do it manually. That way, at the end of the period, a time off in lieu account or working time account balance gets automatically capped.
Managers or administrators can use the Review Periodic Time Account Updates page to check on balances for all employees for whom the periodic update has been performed. If necessary, they can also make corrections. For example, they can update the employee's timesheet or report an unpaid absence to trigger a salary recalculation.
Create New Work Schedule and Time Type Groups
Steps
Create a Day Model.
Times
| External Name | 8:00-5:00 8 Hour Day |
| Time Recording Variant | Clock Times |
| Planned Hours | 8 |
| Planned Hours and Minutes | 08:00 |
| External Code | 8-5_8_HOUR_DAY |
Segments
| Start Time | End Time | Category |
|---|
| 08:00 AM | 05:00 PM | Scheduled Working Time |
| 12:00 PM | 0 | Scheduled Unpaid Break |
Navigate to Manage Time Off Structures.
Create a new Work Schedule Day Model based on the tables.
Create a Work Schedule.
Work Schedule Details
| Is Individual Work Schedule? | No |
| Model | Period |
| Time Recording Variant | Clock Times |
| External Code | 8-5_CLOCK |
| External Name | 8:00-5:00 5 Day Work Week |
| Starting Date | 01/02/2017 |
Work Schedule Days for Period Model
| Day | Category | Day Model |
|---|
| 1 | Day Model | 8:00-5:00 8 Hour Day (8-5_8_HOUR_DAY) |
| 2 | Day Model | 8:00-5:00 8 Hour Day (8-5_8_HOUR_DAY) |
| 3 | Day Model | 8:00-5:00 8 Hour Day (8-5_8_HOUR_DAY) |
| 4 | Day Model | 8:00-5:00 8 Hour Day (8-5_8_HOUR_DAY) |
| 5 | Day Model | 8:00-5:00 8 Hour Day (8-5_8_HOUR_DAY) |
| 6 | Non-Working Day | |
| 7 | Non-Working Day | |
Navigate to Manage Time Off Structures.
Create a new Work Schedule based on the tables.
Create Time Type Groups.
Working Time Type Group
| External Name | Recorded Work |
| Time Category | Working Time |
| Time Pay Type | No |
| UI Component | No |
| Valuation Result Category | –No Selection– |
| Time Collector Type | No |
| External Code | REC_WORK |
| Time Type | Working Time |
| Administrative Tasks |
| Overtime |
On Call Time Type Group
| External Name | On Call |
| Time Category | On-Call Time |
| Time Pay Type | No |
| UI Component | No |
| Valuation Result Category | –No Selection– |
| Time Collector Type | No |
| External Code | ON_CALL |
| Time Type | On Call Duty |
Time Off Time Type Group
| External Name | Paid Absence |
| Time Category | Paid Absences |
| Time Pay Type | No |
| UI Component | No |
| Valuation Result Category | –No Selection– |
| Time Collector Type | No |
| External Code | PAIDAB |
| Time Type | Jury Duty U.S |
| Vacation |
| Sick Leave |
Navigate to Manage Data.
Create a new Time Type Group and create new records based on the tables.
Create a Time Valuation: Scenario 1
In this exercise, you'll create a Time Valuation to raise an error message when employees try to add more than 12 working hours a day on their Timesheet.
Steps
Create a Calculated Time Type Group for Threshold Above.
| External Name | TTG Over 12 per Day |
| Time Category | Calculated Time |
| Time Pay Type | No |
| UI Component | No |
| Valuation Result Category | No Selection |
| Time Collector Type | No |
| External Code | TTG_O12 |
Note
You can't add Time Types to Time Type Groups with the Category: Calculated Time.
Navigate to Manage Data.
Create a new Time Type Group and then create a new record based on the preceding table.
Create a Time Valuation for the error.
Time Valuation
| External Name | Error More than 12 Working Hours |
| Valuation Type | Aggregate Input Groups and Split |
| Message Text | You Cannot record more than 12 working hours per day |
| Message Type | Error |
| Time Type Group Above | TTG Over 12 per Day |
| Valuation Method | Valuate Per Day |
| Threshold Type | Fixed Value |
| Threshold Value | 12 |
| Message Flag | Raise Message on Time Type Group Above |
| External Code | Error_Over_12 |
Input Time Type Group
| Time Type Group | Reverse Sign | Factor | External Code |
|---|
| Recorded Work | No | | 1 |
Navigate to Manage Data.
Create a new Time Valuation and then create a new record based on the preceding two tables.
Create a Time Valuation: Scenario 2
In this exercise, you'll create a Time Valuation to raise an error message when employees try to add more than 60 working hours a week on their Timesheet.
Steps
Create a Calculated Time Type Group for Threshold Above.
| External Name | Weekly Hour Cap |
| Time Category | Calculated Time |
| Time Pay Type | No |
| UI Component | No |
| Valuation Result Category | No Selection |
| Time Collector Type | No |
| External Code | WEEK_TIME_CAP |
Navigate to Manage Data.
Create a new Time Type Group and then create a new record based on the preceding table.
Create a Time Valuation for your Error.
| External Name | Error Over 60 Hour Work Week |
| Valuation Type | Aggregate Input Groups and Split |
| Message Text | You cannot record more than 60 working hours per week |
| Message Type | Error |
| Time Type Group Above | Weekly Hour Cap |
| Valuation Method | Valuate Whole Sheet or Period |
| Threshold Type | Fixed Value |
| Threshold Value | 60 |
| Message Flag | Raise Message on Time Type Group Above |
| External Code | ERROR_OVER_60 |
Input Time Type Group
| Time Type Group | Reverse Sign | Factor | External Code |
|---|
| Recorded Work | No | | 1 |
| Paid Absence | No | | 2 |
Navigate to Manage Data.
Create a new Time Valuation and create a new record based on the preceding two tables.
Create a Time Valuation: Scenario 3
In this exercise, you'll create a Time Valuation to raise an error message when employees attempt to add more than two On Call times per week.
Steps
Create a Counted Events Time Type Group for holding the count of On Call Events.
| External Name | On Call Counter |
| Time Category | Counted Events |
| Time Pay Type | No |
| UI Component | No |
| Valuation Result Category | No Selection |
| Time Collector Type | No |
| External Code | ON_CALL_COUNT |
Navigate to Manage Data.
Create a new Time Type Group and then create a new record based on the preceding table.
Create a Time Valuation to compare On Call Counter to a Threshold.
| External Name | On Call Count |
| Valuation Type | Compare Threshold with Input Groups and Count Events |
| Time Type Group Above | On Call Counter |
| Valuation Method | Valuate Per Day |
| Threshold Type | Fixed Value |
| Threshold Value | 0 |
| Message Flag | Don't Raise Message |
| External Code | ON_CALL_COUNT_VAL |
Input Time Type Group
| Time Type Group | Reverse Sign | Factor | External Code |
|---|
| On Call | No | | 1 |
Navigate to Manage Data.
Create a new Time Valuation and then create a new record based on the data given in the above table.
Create a Counted Events Time Type Group for hold the count of On Call Events for the entire time sheet.
| External Name | Weekly On Call Count |
| Time Category | Counted Events |
| Time Pay Type | No |
| UI Component | No |
| Valuation Result Category | No Selection |
| Time Collector Type | No |
| External Code | WEEKLY_ON_CALL_COUNT |
Navigate to Manage Data.
Create a new Time Type Group and then create a new record based on the preceding table.
Create a Time Valuation to error when adding more than two On Call events in a week.
| External Name | Error More than 2 On Calls per Week |
| Valuation Type | Aggregate Input Groups and Split |
| Time Type Group Above | Weekly On Call Count |
| Valuation Method | Valuate Whole Sheet or Period |
| Threshold Type | Fixed Value |
| Threshold Value | 2 |
| Message Flag | Raise Message on Time Type Group Above |
| Message Text | You cannot add more than 2 On Call times per week |
| Message Type | Error |
| External Code | ON_CALL_WEEKLY_CAP |
Input Time Type Group
| Time Type Group | Reverse Sign | Factor | External Code |
|---|
| On Call Counter | No | | 1 |
Navigate to Manage Data.
Create a new Time Valuation and then create a new record based on the preceding two tables.
Add Time Valuations to a Time Recording Profile
Steps
Add the following Time Valuations to Default Time Recording Profile (DEF_TIME_REC).
Error More than 12 Working Hours (ERROR_OVER_12)
Error Over 60 Hour Work Week (ERROR_OVER_60)
Error More than 2 On Calls Per Week (ON_CALL_WEEKLY_CAP)
On Call Count (ON_CALL_COUNT_VAL)
Navigate to Manage Data.
Search: Time Recording Profile→Default Time Recording (DEF_TIME_REC).
Choose Take Action→Make Correction.
Add the Time Valuations given above to the selected time recording profile.
Assign Time Pieces to Employee
Steps
Assign Time Information to Penny Welsh.
Search for Penny Welsh and select to Time Management category.
Select Edit icon on the Time Information card.
Select JJanuary 1, 2025, as the date the changes take effect.
Set the following values, in the Time Information section of the Job Information.
Work Schedule: 8:00-5:00 5 Day Work Week (8-5_CLOCK)
Time Profile: Default Profile (DEFAULT_PROF)
Holiday Calendar Code: US Holidays (HOLIDAY_US)
Time Recording Profile: Default Time Recording (DEF_TIME_REC)
Time Recording Variant: Clock Times
Time Recording Admissibility: 4 Week Rolling Period (4WEEKROLL)
Default Overtime Compensation: Payout
Choose Save.
Note
A workflow is triggered to all users of the dynamic group Talent Approval.
Proxy in as Alex Anderson (a member of the group). In the Home Page, under the Approvals section, locate the approval request for Data Change for Penny Welsh and then choose Approve. Then choose Become Self to return to your login user home page.
Confirm Role Based Permissions.
Navigate to Manage Permission Roles.
Select System Admin.
Navigate to Time Management Permissions in the Permissions section and ensure that the box next to Time Sheet is checked.
Check all boxes in the Manage Time and Manage Time Off sections.
Save your role and log out and log back in again to see your changes.
Explore the Time Sheet.
Navigate to Penny Welsh’s profile and view the Time Off section.
Note
This information is typically found at the bottom of the profile, but can be moved up by using the Configure People Profile tool.
Select Go To Time Sheet.
Experiment with entering time worked, recording on call or overtime hours, and marking absences. Try to trigger your new Time Valuation Errors to test if all errors appear as expected.
