Overtime is calculated according to the pay plan under which the employee is classified. UMMC excludes non-worked hours in the OT rate calculation.
Overtime is calculated for all hours worked in excess of 40 hours in one week. Overtime is usually calculated at half the shift rate where it occurs. The average overtime rate is used if call pay or premium pay increases the average pay rate for a week. This is calculated as follows:
Example: If a pay plan OT40 employee worked the following hours per shift, the overtime is calculated accordingly:
Shift 1 OT
Shift 3 OT
Total overtime hours 53 - 40 - 8 (holiday hours) = 5.0
$502.50 (gross pay before holiday/45 (worked hours) = $11.17 average pay rate
$11.17 (avg. pay rate) / 2 = $5.58 average overtime pay rate
2 hours (shift one OT) x ($10.00+$5.58) (base rate + aver OT pay rate) = $31.17 total pay
3 hours (shift 3 OT) x (11.50+5.75) (shift 3 base rate*1.5) = $51.75 total pay
On the third shift the $5.75 regular overtime rate is higher than the average overtime rate of $5.58
Most nonexempt employees are on the Overtime 40 plan. Depending on the number of hours worked and the shifts worked, an employee's overtime rate may vary from week to week.
Overtime is calculated for all hours worked in excess of 80 hours in a pay period, or 8 hours in one day, whichever is greater. The overtime rate is calculated in the same manner as above except that the two week period is used to calculate the average pay rate. The employee is paid the higher of half the shift rate or half the average pay rate. This paycode is only used for certain categories of employees, and the majority of hourly employees are on the OT40 plan.
Leave time is not used in the calculation of overtime. Administrative, holiday, medical and personal leave hours are not used in the calculation of overtime. If an employee works on a holiday, the employee is paid the regular pay, plus eight hours of holiday pay at their regular rate.(Double pay) Call pay and shift premium pay are added to the gross pay for the purpose of calculating the overtime rate of pay. Adjustments from prior periods are not added to the gross to determine the overtime rate for the current pay period. If the adjustment had an effect on the overtime calculation for the prior period, the system will recalculate the pay for that prior period and include any positive or negative pay.
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