Compliance Playbook Content: View Playbook • See disclaimer below
Overview
Premium Pay is a Pay Exception rule type that allows customers to create one or more custom Premium Pay rules within a Rule Set in the Above Store Console (ASC).
Each Premium Pay rule defines when additional pay applies and how that premium is calculated. Customers can create separate rules for specific days, holidays, time periods, or other customer-defined scenarios.
Premium Pay rules are separate from overtime calculations and from Pay Exception rules that are triggered by schedule changes, shortened shifts, insufficient rest between shifts, or split shifts. Customers are responsible for determining when Premium Pay should apply and how it should be configured based on their policies, agreements, or applicable requirements.
- For details on creating, editing, and assigning Pay Exception Rule Sets in general, refer to this article.
Premium Pay Rule Configuration
Premium Pay rules are configured by defining when each premium should apply and how the additional pay should be calculated. Customers can create rules for specific dates, holidays, recurring days of the week, or other customer-defined scenarios.
The following settings determine how each rule is named, when it applies, and how the premium amount is calculated:
-
A - Rule Name: Enter a name that identifies the Premium Pay rule.
- Example: A customer may create a rule named “Christmas Day” or “Sunday Premium.”
-
B - Occurrence: Define when the rule applies. Select Day of week or Recurring annually, then configure the applicable day or date.
- Example: For recurring annual events, customers may configure a fixed date, such as December 31, or a floating date, such as a holiday that occurs on a specific weekday pattern.
-
C - Pay Adjustment Rate Factor: Select how the additional pay is calculated:
- Lump Sum - Pays the configured fixed amount.
- Amount in Addition - Adds the configured amount to the employee's hourly rate.
- Hourly Rate x - Calculates the additional premium as a factor of the employee's regular pay. For example, a factor of 0.5 adds an additional 50% of regular pay, resulting in total compensation equivalent to time-and-a-half.
- D - Include Salaried Employees: Select this option to include salaried employees when applying the rule.
- E - Add Premium/Holiday Pay Rule: Select this option to add another Premium Pay rule to the Rule Set. Each rule can have its own name, occurrence, and pay calculation settings.
- F - Earning Code: Maps the applicable pay adjustment to an earning code for payroll export. This field is optional; if no earning code is configured, the standard default earning code is applied. Customers should confirm the appropriate earning code with their payroll team.
Related Articles
- HS ASC: Time and Attendance - Pay Exceptions
- HS ASC: Pay Exceptions - Predictability Pay and Right to Rest Rules
- HS ASC: Pay Exceptions - Minimum Shift Rule
- HS ASC: Pay Exceptions - Split Shift Rule
- HS ASC: Pay Exceptions - Meals & Breaks Rule
- HS ASC: Pay Exceptions - Regular Schedule Rule
- HS ASC: Pay Exceptions - Good Faith Estimate Rule
Important Disclaimer: Customers are responsible for their own compliance obligations and should consult qualified legal or compliance professionals for guidance specific to their organization. This content is provided for informational purposes only and is not legal advice. Fourth provides this information to facilitate internal discussion and ongoing compliance awareness. It has not been prepared or reviewed by legal counsel, and Fourth does not provide legal or regulatory advisory services.
Comments
Please sign in to leave a comment.