Important Update: Payroll Overtime Payment Process

With the implementation of the Cardinal payroll system, there was a change in the timing of when overtime is paid. In summary, in Cardinal, approved salaried overtime is  systematically released on the 14^th calendar day after the Fair Labor Standards Act period completion before being made available for payroll processing. This overtime lag is standard across all agencies. What this means is that overtime will generally be paid about one month after the hours were worked.

Below is the full explanation taken from a Time & Attendance training document:

Overtime Lag Overview
The Fair Labor Standards Act (FLSA) establishes a minimum wage, overtime pay, record keeping and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State and Local governments.

A non-exempt employee under the Fair Labor Standards Act may work overtime hours only as authorized by his or her supervisor or manager at each agency.

In Cardinal, approved salaried overtime and shift differential are systematically released on the 14th calendar day after the FLSA period completion before being made available for payroll processing. This overtime lag is standard across all agencies.

For time reported online, payable overtime and shift differential Time Reporting Codes in Needs Approval (NA) Payable Status are changed to Overtime Hold (VH) Payable Status upon approval. For interfaced time, the Time Administration process will automatically set the Payable Status of Overtime and Shift Differential Time Reporting Codes to Overtime Hold (VH). The nightly Overtime Lag batch job releases time in Overtime Hold (VH) status for payroll processing by changing it to Approved (AP) payable status upon the 14th day after completion of the FLSA period the time was reported is satisfied.  Payable time in Approved (AP) Payable Status is picked up in the next Load Time & Labor Process in Payroll. 

Overtime Payout Examples by FLSA Calendar ID

Submitted by:
John Guszak, Controller, JGuszak@nvcc.edu