Work schedules establish the start of the work week and help you manage the following:
- Regular Hours vs. Overtime Hours
- Whether and how much to [round] when employees clock in or out
- Job Codes for employees who earn different rates of pay based on:
- The position being worked
- Being paid out of differing budgets
- Billable hours
Work Schedules vs. Reporting/Pay Periods
By US Department of Labor regulation, overtime is calculated by Work Week NOT by Pay Period.
Below, an employee worked 8 hours each day from Sunday the 29th through Friday the 3rd.
Friday is the 6th day within the 7-Day Work Week but it is only the 3rd day of a 15-Day Pay Period.
Because Friday the 3rd is within a 7-Day Work Week, overtime is authorized.
In the second 7-Day Work Week (same Pay Period) the employee worked 5 ten-hour days (50 hours).
The first 4 days are straight time. The 5th day (of the 7-day Work Week) is 10 hours of overtime.
The employee worked 11 days during the 15-day Pay Period.
Had the employee worked 8 hours each day, it would have been 88 hours total. (all regular time).
The employee however, worked 110 hours. 92 hours regular, and 18 hours overtime.
The illustration below also shows how overtime hours fall in subsequent Work Weeks. Notice how on the first day of the second Pay Period the employee worked 12 hours but only 4 hours are regular while 8 hours are overtime. This is because of where it lands during the Work Week.
The employee put in 36 hours the 3 previous days of the Work Week, making only the first 4 hours of day-four regular time. The other 8 are overtime. ...And we're only on day one of the new Pay Period.