Overtime Across Placements
Overview
This article contains information on how Bullhorn Back Office calculates both regular and overtime for multiple placements when Overtime Across Placements is enabled. This calculation is based on rules established by the Fair Labor Standards Act.
Before You Begin
Overtime Across Placements is typically configured when your system is implemented. Any changes to this setup must be done by Bullhorn Back Office Support.
If you are unsure if you should be using this feature, please consult your legal counsel.
Overtime Across Placements Calculation
With Overtime Across Placements enabled, overtime is proportionally applied across all timesheets worked by an employee for that time period. The regular hours and overtime hours are then adjusted based on that calculation.
Example
John works at two different jobs. For the week ending 4/30, he worked at Placement A for $10.00/hr (PayRate) for 36 hours and Placement B for $15.00/hr (PayRate) for 8 hours. In total, John worked 44 hours. There is an overtime rule in place that states that overtime is applied when over 40 hours are worked in a week, so John worked 40 regular hours and 4 OT hours.
- Total number of hours worked = 44 (40 regular, 4 OT)
- Placement A= $10.00 PayRate/$15.00 OT Rate
- Placement B = $15.00 PayRate/$22.50 OT Rate
Part I: Averaging the Hours
To calculate overtime across placements, start by dividing the number of hours worked across each placement by the total hours for all placements. Those numbers are then multiplied by the number of OT hours to get the weighted average hours for each placement.
- Placement A Overtime
- 36 hours / 44 total hours = 0.8181 * 4 OT hours = 3.27 weighted average
- Placement B Overtime
- 8 hours / 44 total hours = 0.1818 * 4 OT hours = 0.727 weighted average
The regular hours for each placement are then adjusted for the OT applied:
- For Placement A, out of the 36 total hours that were worked, 3.273 hours are calculated as OT:
- 36 Total Hours = 32.73 Regular Hours + 3.273 OT hours.
- For Placement B, out of the 8 total hours, only 0.727 are counted as OT:
- 8 Total Hours = 7.27 regular hours + 0.727 OT hours.
Part II: Calculating Overtime per Placement
With the adjusted regular and overtime hours calculated, you can then apply the rates from each placement to calculate the amount earned:
- Placement A
- 32.73 regular hours x $10.00 (pay rate) = $327.30
- 3.273 OT hours x $15.00 (OT Rate) = $49.10
- Total Pay for Placement A = $376.40
- Placement B
- 7.273 regular hours x $15.00 (pay rate) = $109.10
- 0.727 OT hours x $22.50 (OT Rate) = $16.36
- Total Pay for Placement B = $125.46
- Total Pay for John = $376.40 + $125.46 = $501.86