UMHHC Time Reporting Code Manual
OTP/OTR/OTH/OLP Time Keeping Reference Guide Time Reporting Codes Overtime and Over Appointment Regular Pay Definiti...
OTP/OTR/OTH/OLP Time Keeping Reference Guide Time Reporting Codes Overtime and Over Appointment Regular Pay Definitions Hours worked over appointment that are paid at straight time are not considered to be Overtime pay in relationship to the Fair Labor Standard Act. The Fair Labor Standard Act (FLSA) regulates overtime pay for non-exempt employees. Exempt employees are not subject to overtime pay regulations of the FLSA. OTR, over appointment regular is used to report hours worked above appointment but less than 40/week, paid at 1.0 times the hourly rate OTP is overtime paid at 1.5 times the hourly rate OTH is used to create overtime and is paid at .5 times the hourly rate OLP is used to create overtime and is paid at .5 times the hourly rate
Time Reporting Codes
General Practice
Include in APPT HRS
Counts as hours worked in calculation of overtime for workgroups
Over Appointment Regular (OTR) Used to report worked hours that exceed the Standard Hours per week up to 40. Also, used when there is exception time in the week when an extra day us picked up for those workgroups that get overtime only after working over 40 in the week. (See examples below) Overtime Premium (OTP) Used to report hours that exceed 40 in a week, 8 in a day, or 80 in two weeks, depending on which overtime rules apply in relation to the employee’s workgroup. (See ‘Resources’ at the bottom of this document) Overtime Half Pay (OTH) Used with REG to report time and a half pay when hours worked on a holiday cause an employee to exceed 40 worked hours in a week. (See example
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below) Overlap Pay (OLP) Used to report with REG hours to create Overtime pay at 1.5 times the hourly rate when the hours are considered a part of the Standard Hours.
AFSCME1 TRADES1 IUOEENGR1 NURSEBW MNURSEMO
NO
NONE
General Principles and Frequently Asked Questions
Temporary staff are considered non-exempt and are paid overtime for hours worked over 40 in a week based on the Overtime Standard Practice Guideline 201.38 If an employee holds a Temporary appointment in addition to a Regular Exempt appointment, the employee will ultimately be considered an Exempt employee They are paid OTP only after working 40 hours on the Temporary appointment regardless of the appointment fraction of the Exempt appointment Generally, the employee should only be working 8-16 or fewer hours a week on the Temporary appointment in these cases If they are working more, the situation should be reviewed by an HR Compensation specialist to ensure we are in compliance with FLSA wage and hour regulations
Exempt Staff OTR should not be reported unless staff member is bargained for, and the bargaining agreement specifies over appointment hours be reported.
Overtime Half Pay (OTH) is used only during Holiday weeks, paying at .5 times the hourly rate. OTH is reported with REG on a day other than the Holiday to create overtime at 1.5 times hourly rate when all hours that count towards overtime exceeds 40 in the week, including hours worked on the holiday. Example: Standard Hours 40; worked over scheduled shift on the holiday, causing the employee to exceed 40 worked hours in the week
Sun
Thu Fri (holiday) (holiday)
Mon
Tue
Wed
Scheduled
8
8
8
8
8
Worked
8
Report
8 REG
8 8 REG 8 OTH
8 8 REG 8 OTH
16 8 HOL 16 HWT
16 8 HOL 16 HWT
Sat
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Reporting OTH for punch employees All hours worked on the Holiday count towards the calculation for overtime in the week. If the total hours worked in the week including HWT (hours worked on the Holiday) exceed 40 hours, and some of the REG hours (appointment hours) need to be paid as time and a half, report the OTH code with REG to create the overtime pay. This happens when an employee works over their normal shift length of 8 hours on the holiday. In the example, the Punch Approver will: • add a row to report HOL on the Holiday • add another row on the Holiday to report the HWT for all hours worked on the holiday • add a row on one of the other days in the week that has REG reported and report OTH equal to hours exceeding 40 in the week Example: 40 hour/week AFSCME employee is scheduled to work 8 hours on the holiday and works an additional two hours:
Overlap Pay Description: A day is defined as a 24-hour period that begins with the employees start time. When an employee begins work at 8:00 a.m. on Tuesday; the 24-hour period begins at 8:00 a.m. on Tuesday and ends at 8:00 a.m. on Wednesday. If the employee begins work on Wednesday at 7:00 a.m. and the overtime premium for over 8 hours in a day or over the normal shift length applies; the employee would be eligible for overtime pay from 7:00 a.m. – 8:00 a.m. If the employee works 8 hours on
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Wednesday reporting OTP for the 1 hour and REG for 7 hours will not work as it will leave a one-hour deficit in reporting standard hours resulting in the employee being overpaid for Exception Pay employees. OLP pays .5 times the hourly rate. The OLP code is only eligible to be used by workgroups that are eligible for daily overtime (worked more than 8 hours or scheduled shift length in a 24-hour period)
Example: Standard Hours 40; worked over the scheduled shift length in a 24-hour period Tue & Thu Sun Scheduled:
Mon 7am3pm 8 REG
Report:
Tue 6am2pm 8 REG 1 OLP
Wed 7am3pm 8 REG
Thu 6am2pm 8 REG 1 OLP
Fri 7am3pm
Sat
8 REG
1 OLP is reported on Tuesday and Thursday along with the 8 REG due to starting 1 hour earlier than the day before. The 1 hour is a part of the Standard Hours for the week AND it needs to be paid as Overtime (eligible for daily overtime), to satisfy both requirements report REG and OLP for 1 hour. The REG pays the 1.0 (satisfies Standard Hours requirement) and the OLP pays .5 (satisfies the Overtime pay requirement) totaling 1.5 times the hourly rate. OTP is used if the overlap hours are NOT a part of the standard hours for the week. See example below. Example: Standard Hours 24; worked over the scheduled shift length in a 24-hour period Sun Scheduled: Report:
Mon 7am3pm 8 REG
Tue 6am10am 1 OTP 3 OTR
Wed 7am3pm
Thu
8 REG
Fri 7am3pm
Sat
8 REG
OTR is used in a couple of different ways When an employee is part time and works over their standard hours but less than 40 in a week
Sun Scheduled: Worked: Report:
Example: Employee is 32 hours a week and works an extra day Mon Tue Wed Thu Fri Sat 8 8 8 8 8 8 8 8 8 8 REG 8 REG 8 OTR 8 REG 8 REG
When an employee who belongs to a workgroup that receives overtime premium only after working 40 hours in the week and they take exception time such as PTO but work over their standard hours Example:
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Employee is 40 hours a week, takes a PTO day and then picks up an extra shift later in the week Sun Mon Tue Wed Thu Fri Sat Scheduled: 8 8 8PTS 8 8 Worked: 8 8 8 8 8 Report: 8 REG 8 REG 8 PTS 8 REG 8 REG 8 OTR Related Policies & Practices SPG: 201.38 UHHC Policy: Bargaining Agreements MNA: Article 15 AFSCME: Article 10 IUOE: Article 9 TRADES: Article 11 RESOURCES Related Charts and References Overtime Premium Chart: http://www.med.umich.edu/umhshr/doc/Overtime_Pay_Chart.pdf (Copy and paste into your web browser if needed)
Please contact the UMHHC Payroll Office if there are questions, different practices in place in your department, or if this information needs to be updated.
