EPY: FLSA Rate is Not Being Recalculated Correctly when Employee Base Pay is Adjusted to Less Than 40 Hours Per Week Under Certain Scenarios
Last updated on DECEMBER 18, 2015
Applies to:PeopleSoft Enterprise HRMS Payroll for North America - Version 9.1 and later
Information in this document applies to any platform.
Employee originally paid 40 reg hours and 8 overtime hours + bonus. All 8 overtime hours are calculated using the FLSA regular rate, which is correct.
Subsequent pay period, reg hours are reduced by 7 and paid using an earnings not subject to FLSA regular rate.
The previous 8 hours of overtime paid at the FLSA rate are credited as expected, however, the FLSA rate is used again (higher this time) to recalculate all 8 overtime hours.
Expectations is that 7 overtime hours would be recalculated at the contractual rate and 1 hour at the FLSA rate.
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