Nevada Overtime with the Nevada Workday Rule

The Nevada Workday apples a weekly threshold at 40 hours and a daily eight hour threshold for selected employees based on a rolling 24 hour period. This rule, released in June of 2019, accounts for time deducted for breaks when calculating the daily overtime.

There are two parts to using this rule: activating it for the site and selecting which employees qualify for the daily overtime threshold.

Activating NevadaWorkday

IMPORTANT: As with all overtime rules, their should only be one rule active per site. If your client has bee using a different overtime rule until now, you should make sure pay periods for processed payrolls are finalized. Once you change overtime rules, the change will apply to any unfinalized pay period.
  1. Click Settings Menu ⇒ Processing Rules ⇒ Overtime (category
  2. From the list of overtime rules in the Overtime Processing Rule Category, select NevadaWorkday.
  3. Click Save

After saving NevadaWorkday, it will be active for the site. However, the daily threshold will only be applied to employees based on the OT after 8h? field in Employee Setup.

Applying Daily Overtime Threshold to Employees

Nevada's daily overtime rule only applies to employees making less than a certain wage. Once you activate the NevadaWorkday rule, a field is added to Employee Setup where you can classify daily overtime eligible employees.

This field, called OT after 8h? is found in the Employee Data section of the employee record. It is date sensitive, so make sure you choose an Effective Data that correctly applies to the employee's eligibility.

To classify multiple employees as daily overtime eligible:

  1. From the Employee Setup list view, use the checkboxes to select multiple employees.
    TIP: You could also filter employees by pay rates (if you have pay rate data in the system) by choosing only those employees with an hourly rate below the threshold. Then, use the master checkbox in the column header to select all those employees. You can filter by right-clicking the Pay Rate column header and setting the filter to less than or equal to a certain value. Just make sure you include the "$".
  2. From the Employee Setup Options, choose Work with selected employees.
  3. In the OT after 8h? field, enter "1" or "yes" to classify the employee as eligible for daily overtime.
  4. Make sure you select an Effective Date that coincides with the start of their punch activity. 
  5. Click Save.
The system will now use a rolling 24 hour period to evaluate if the employee gets overtime after 8 hours.

How is the Rolling 24 Hour Period Calculated?

To summarize this rule:
  • A rolling 24 hour period is calculated from the in punch forward as opposed to calculating from the out punch backwards.
  • The time card does not use overlapping, rolling 24 hour periods. If an in punch is recorded prior to the end of an established rolling 24 hour period, then the time card will continue to use that established window regardless of the new in punch. It will not create a new 24 hour period starting from the new in punch. For example, if an employee has an established 9am to 9am rolling 24 hour period and they clock out for lunch at 1pm, the time card will not create a new, 1pm to 1pm rolling 24 hour period.
  • Deducted time (such as breaks and meals calculated with our Intelligent Clock and Auto Lunch rules) will not negatively affect the evaluation of overtime.
  • Once an in punch is recorded outside of an established rolling 24 hour period, the time card will create a new rolling 24 hour period. For example, if an employee had an established 9am to 9am rolling 24 hour period, but following a 9am to 5pm shift, worked a 10am to 6pm shift, the time card would use a 10am to 10am rolling 24 hour period from that point forward.

What About the Other Nevada Rules?

This article specifically addresses the NevadaWorkday rule, not the Nevada, NV or NV11 rule. Those rules, while still available for use on TimeWorksPlus sites, may not work in certain scenarios, specifically when breaks and meals are involved. The NevadaWorkday rule does account for deducted time while appropriately applying the rolling 24 hour period.

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