New automation — overtime on incentive pay

New automation — overtime on incentive pay

Incentive pay is defined as additional compensation awarded to employees for results they achieved, i.e “pay for performance”. Federal law requires employers to pay overtime to non-exempt employees when they earn incentive pay and overtime in the same pay period. To help our customers meet this pay requirement, we launched a new automated feature that notifies Admins when overtime is owed while they are scheduling incentive payments. To keep a complex pay requirement simple, we automatically calculate the overtime owed and add it to the total incentive payment amount.

Employees receiving overtime on their incentive pay will see a breakdown of the payment (including the overtime on incentive pay amount, the number of overtime hours, and the overtime rate) included in the Notes section of their pay stub. That way, employees can easily understand their earnings for the pay period.

Admins with the Make payments permission will have access to the new feature when scheduling incentive payments through the Payments Center.

For more information, click here.

As always, we’re here 24/7 if you have any questions.