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Overtime Jurisdiction Configuration
Overtime Jurisdiction Configuration

How does the platform calculate overtime for W2 employees?

Brianna Lysaith avatar
Written by Brianna Lysaith
Updated over a year ago

Your Internal team will be able to see a tab marked Jurisdiction on the dashboard of your platform, if you are running W2 payroll.

The purpose of the feature is to allow for accurate and lawful calculation of overtime for different countries, which is also subdivided into different states and their jurisdictions. There will be a dropdown with the list of countries from which your platform’s overtime laws should be in compliance with.

The steps for setting up platform Jurisdiction includes:

  1. Selecting the country

  2. View Jurisdiction

  3. Choose the state in which your business operates.

  4. Input lower threshold (minimum hours), higher threshold (maximum hours), and the corresponding overtime multiples.

  5. Hit save.

Once all this information has been set, any orders placed will automatically be calculated to reflect these configurations. There is however, Global Jurisdiction which is set laws/ rules of a country or state that we know to be true and won’t allow for alterations to be made.

If an employee works in multiple jurisdictions and goes into overtime, the platform would apply the overtime most favorable to the employee. As we know, the platform can have multiple default workplaces, for example, a default workplace in New York and another in Florida, however an employee can only have one default workplace, in this case let’s say they are in Florida.

If for some reason, the employee leaves Florida and goes to New York, picks up some shifts there and goes into overtime; the platform would try to decipher the address wherein the event took place, in order to apply the accurate overtime jurisdiction configuration. If the platform is unable to decipher where the event took place or if it is a remote job, then it would use the default workplace jurisdiction.

Below is an image of different State Jurisdictions.

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