Warning: Employees in California or Kentucky? Don’t forget to configure the 7th Day Consecutive Overtime Rule in Kronos
While most states follow the lead of the Fair Labor Standards Act, each state has its own labor department and the rights to define their own labor laws.
First, some background: The Fair Labor Standards Act sets the standard workweek at 40 hours, and assumes that most employees will work five days in a row, with 8 hours worked each day.
For professions where longer days are standard, like medical or factory work, with 10 or 12 hour shifts for fewer days per week, the law sets out that they can be compensated regularly for their first 40 hours despite the longer number of hours per shift.
In either case, after an employee works 40 hours in the workweek, the law requires that they receive overtime pay.
California And Kentucky Work Rules
In most states ‘overtime’ means they’ll receive 1.5 times their usual hourly pay. In addition to the over 40 overtime law, in the states of California and Kentucky there are specific overtime rules for working 7 consecutive days in a single work week.
In these two states any hours worked on the 7th day in a row be will be paid as overtime, regardless of how many hours the employee worked in the preceding 6 days.
Additionally, in California not only do they receive overtime on the 7th day, if an employee works more than 8 hours on the 7th day, the law says they are to receive ‘double time,’ or twice their normal rate of pay for those hours.
Fortunately, Kronos can be configured to handle this for you.
Creating an Overtime Zone For Compliance of the 7th Consecutive Days Worked Laws.
If you have employees in Kentucky or California, you can configure your Kronos system to automatically take these special rules into account. With the proper configuration in place, your employees’ hours will be calculated to pay the desired overtime based on your company’s workweek.
This is done by setting up a 7th consecutive day zone, and creating or incorporating it into an existing combination rule, pay code distribution, and work rule, then, finally, adding it to the payrules for which this rule applies.
To create this New Zone, you’ll first need to log into Kronos; then you can follow the four steps below.
How to Create the New Zone in Kronos:
- Navigate to Setup, “Pay Policies, Work Rule Building blocks and Zones.”
- Select “New.”
- Give the new zone a name (ex: “7th Consecutive Day Reset”).
- For the zone type, choose the “Consecutive Days Worked” option.
This Consecutive Days Worked option defines a block of time marked by a number of days in a row during which work was done.
When this selection is made, the configuration fields that follow the Zone Type selection box will change.
Configuring the New Zone:
Many of the fields that are now present will be completed, but not all. You’ll want to review these and make sure they are correct for your company.
The configuration should be based on your company’s work week. (Keep in mind if you have employees in both Kentucky and California, that have different work weeks, you will need to configure more than one zone and attach accordingly within the combination rule).
The fields that will need information will be:
- Number of Days
- Days in a Row
- Day of the Week
- Reset on Day block
Once you’ve configured the settings correctly, click ‘Save & Return’ in the New Zone Rule window.
At this point you’ve completed the creation of the New Zone rule; however, you will still need to update or add other building blocks within Kronos to complete the setup of this zone rule — including establishing the rule for each possible work week and testing to make sure it is applied correctly.