Overtime

Because different geographical locations have different government standards regarding overtime hours, Maitre'D has the capability of customizing the way overtime pay is calculated. This module allows to set several overtime calculations in Time and Attendance. Only one calculation is used per employee file. You have the option to choose a type of overtime when you set up new employee information in the Time and Attendance / File/Employee / Assigned Tasks.

Setup

Description

In this field, enter the name of the type of overtime calculation you are creating. This field can contain a maximum of 20 characters.

Minimum Wage

Enter the minimum wage to be used for overtime calculation. If the employee's hourly wage is lower then this rate, the employee's salary for regular hours will be calculated using the wage defined in the employee's file, but the overtime hours will be calculated using this minimum wage.

NOTE: This field must be set to $ 0.00 in Canada.

California Rule

The state of California, USA, has a very unique formula for calculating overtime pay. If the restaurant is located in the state of California, check this field.

Tip Credit Deduction:

In some geographical locations, the law allows a tip credit deduction to employers when they pay a tipped employee for overtime hours. If this option is enabled, you can calculate the tip credit deduction by subtracting the amount which is the regular rate of pay for the employee from the rate of minimum wage. To calculate the employee's overtime rate of pay, subtract the amount of the tip credit deduction from the minimum wage rate plus overtime. This option is only effective if the employee's hourly wage is lower then the rate entered in the "minimum wage" field. If this option is disabled, the overtime calculation will not be affected. Formula for calculating the amount the employee gets paid for overtime: (Minimum Wage X 1.5) - Tip Credit Deduction = Amount the employee gets paid for Overtime. Example: The minimum wage is $ 4.35 an hour. The server's regular rate of pay is $ 3.01 an hour. The minimum wage for overtime is $ 6.53 an hour ($ 4.35 X 1.5). Here is how you would calculate the amount the employee gets paid for overtime:

$ 4.35 (Minimum Wage) - $ 3.01 (Server's Regular Rate of Pay) = $ 1.34 (Tip Credit Deduction) $ 6.53 (Minimum Wage X 1.5) - $ 1.34 (Tip Credit Deduction) = $ 5.19 (Amount the employee gets paid for Overtime) NOTE: In Canada, this field does not apply, and should always be disabled. Check with the law in your geographical location to see if tip credit deduction is allowed.

Overtime Begin at

1st Level Overtime

Enter the number of hours that the employees can work before receiving a different rate of pay.

Example: If the employee works more than 10 hours per day, or more than 44 hours per week, the employee receives an overtime rate of pay (usually "time and a half" or 1.5 times the regular rate of pay).

Daily Hours

Enter the number of hours that the employee can work in a day before receiving an overtime rate of pay. Using the example above, you would enter "10".

Weekly Hours

Enter the number of hours that the employee can work in a week before receiving an overtime rate. In the example above, you would enter "44".

Rate

Enter into this field the overtime rate. For example, if the employee gets "time and a half" for overtime, enter "1.5".

2nd Level Overtime

In some areas, a rate of overtime greater than the regular overtime starts after a certain number of daily or weekly hours. Example: If the employee works more than 14 hours per day, or more than 60 hours per week, the employee receives a special overtime rate of pay (usually "double-time" or 2 times the regular rate of pay).

Daily Hours

Enter the number of hours the employee can work in a day before receiving a special overtime rate of pay. Using the example above, you would enter "14".

Weekly Hours

Enter the number of hours the employee can work in a week before receiving a special overtime rate. In the example on the previous page, you would enter "60".

Rate

Enter into this field the special overtime rate. For example, if the employee gets "double time" for special overtime, enter "2".