O Method FLSA Calculation of D/T Hours

In California, double-time (D/T) hours are paid at one times the regular rate of pay. When there are more than two rates of pay or non-discretionary income, the weighted average method is used for calculation premium pay or HALF pay.

Your organization can set up the system to allow for the 50% premium pay calculation for the D/T pay code, thus including D/T in the weighted average at one times the regular rate, and the DT1 pay code (for straight double-time pay) then calculates at one time the weighted average rate.

Your organization can use a DT1 pay code as the regular double-time pay code using the 1x pay rate, and DTPREM as the premium double pay code, with a rate that is 1x the calculated weighted average rate for the O-type FLSA Rulesets.

1. Set up the DT1 pay code so that the Add to D/T Hours (Threshold) option is selected.

Figure 123: Pay Code processing parameters for DT1

2. Set up the DTPREM pay code as required (Figure 124).

Figure 124: Standard Method Rules and Processing Options for DTPREM

3. Set up an FLSA Ruleset where:
• The Reporting Method is set to (O) Overtime Hours Reported Separately.
• The Premium Pay Code is set to HALF.
• The Double Premium Pay Code is set to DTPREM.

Figure 125: FLSA Ruleset for reporting overtime hours separately

4. In PrismHR, enter the ruleset ID in the FLSA Ruleset field of the Client Details Payroll tab.
5. Enter the FLSA Work Week Ends On day.

Figure 126: FLSA Ruleset and FLSA Work Week Ends On fields in Client Details

6. The next payroll will calculate correctly.

Note:  Note that the payroll’s period end date must coincide with the FLSA Work Week Ends On day.