FLSA Overtime Premium
Before we converted to PeopleSoft, the FLSA overtime premium for General employees was calculated and paid twice a year-in May and December. And it was based on the overtime hours worked and paid over the previous six month period.
With PeopleSoft, employees no longer have to wait six months. In PeopleSoft the FLSA premium is calculated and paid on the overtime hours each pay period. You probably noticed on the pay advice (since we have gone live with PeopleSoft) that overtime is now paid at the FLSA overtime rate which includes the overtime FLSA premium.
For this first pay check in December, on the pay advice, you will notice a separate line item called FLSA OT. This onetime payment is for the FLSA premium due to the employee for overtime worked and paid from May 2010 until we went live in October. From this point on, the FLSA overtime premium will be paid each pay period as I stated above.
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