EPY: Retro Pay Calculates Alternative Overtime at the Employee's Contractual Rate, Not the Alternative Overtime Regular Rate When Job Change
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.
When an employee who is coded as Alternate Overtime FLSA status in job receives a retroactive pay increase over a period in which they received an FLSA rate on their premium pay, retro pay calc is not recalculating the premium properly. Rather than reapplying an FLSA rate with the rate increase, it applies the hourly rate, resulting in the employee being underpaid.
This issue occurs specifically when a future dated job change occurs prior to the payrolls and the retroactive rate update.
Future dated job change is entered changing the supervisor on 03/05/13
Then pay the Alt OT employee over three weekly pay periods beginning 02/24/13:
P/E 03/02 Reg 40; OT 10; Bonus $1000
P/E 03/09 Reg 40; OT 10; Bonus $1000
P/E 03/16 Reg 40; OT 10; Bonus $1000
Alt OT is calculated correctly for all three pay checks
Insert a new rate change for this employee effective the beginning date of the first pay cycle referenced above (02/24/13).
Retro pay is triggered as expected.
Retro pay is calculated. Warning message 008016 is issued for both the 03/09and 03/16 Period End dates. This warning message is issued correctly for P/E 03/09 because of the JOB change effective 03/09. However, the warning message is also issued for P/E 03/16 which is incorrect.
In both the 03/09 and 03/16 periods, the alt overtime is calculated at 1.5 the employee contractual rate.
Note: This issue does not occur if employe is setup as FLSA FLSA status as opposed to Alt OT on Job.
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