Regular Rate vs Job Rate
Some labor rules have an option to use the employee’s ‘regular rate’ when calculating penalty earnings. The regular rate factors in an employee’s rate from all jobs that they work in a week as well as other applicable earnings.
When a labor rule is set to ‘job rate’, only the rate associated with the job worked is used; other worked jobs and earnings are not included.
An employee’s regular rate is calculated at the end of each workweek, as follows:
Combined straight time earnings are calculated for a full workweek:
(Job Rate A x Hours Worked in Job A) + (Job Rate B x Hours Worked in Job B) + Applicable Other Earnings = Straight Time Earnings
Regular Rate is calculated:
Straight Time Earnings / Total Weekly Hours = Regular Rate
Regular Rate - Other Applicable Earning Types
As part of regular rate calculations, wages associated with applicable penalty earnings are included. Only earnings that have been added to an employee’s daily sales summary labor details or their timecard are included in these calculations. Earnings added after labor has been exported to payroll are not included.
Default earning types used in regular rate calculations include:
Shift Differential
Bonus
Service Charge
To enable or disable earning types used in regular rate calculations, contact R365 Support.
Weighted Average OT Rate (WAOT)
Overtime rules use the Weighted Average OT Rate (WAOT) to calculate overtime wages using an average OT premium rate for all employees who work multiple jobs or have additional applicable earnings.
There are two options for how WAOT is calculated for an employee’s worked hours; the federal calculation and the California calculation.
Federal WAOT Calculation
When the 'Weighted Average OT Rate' setting is checked, overtime wages are calculated using an average OT premium rate in compliance with FLSA standards, as follows:
Combined straight time earnings are calculated for a full work week:
(Job Rate A x Hours Worked in Job A) + (Job Rate B x Hours Worked in Job B) + Applicable Other Earnings = Straight Time Earnings
If the Employee is paid a tipped minimum wage, the configured 'Minimum Wage' will be used as the job rate when calculating straight time earnings.
Average Regular Rate is calculated:
Straight Time Earnings / Total Weekly Hours = Average Regular Rate
OT Premium Rate is calculated:
Average Regular Rate x (Overtime Rate - 1) = OT Premium Rate
Overtime rate is configured per overtime type.
Overtime Wages are calculated:
(Overtime Hours x Job Rate) + (Overtime Hours x OT Premium Rate) = Overtime Wages
California WAOT Calculation
When the 'Use California WAOT Rate Calculation' setting is checked, overtime wages are calculated using an average OT premium rate in compliance with California standards, as follows:
Combined straight time earnings are calculated for a full work week:
(Job Rate A x Hours Worked in Job A) + (Job Rate B x Hours Worked in Job B) + Applicable Other Earnings = Straight Time Earnings
If the employee is paid a tipped minimum wage, the configured 'Minimum Wage' will be used as the job rate when calculating straight time earnings.
Average Regular Rate is calculated:
Straight Time Earnings / Total Weekly Hours = Average Regular Rate
OT Premium Rate is calculated:
Average Regular Rate x Overtime Rate = OT Premium Rate
Overtime rate is configured per overtime type.
Overtime Wages are calculated:
OT Premium Rate x Overtime Hours = Overtime Wages