The ExcludeInMinimumWageCalculation property helps to determine whether or not to exclude pay codes from federal minimum wage check while verifying time entry batches.
In practice, employees such as bartenders and waiters might only get paid $2.15 per hour because they are expected to make up the difference from tips and gratuity. For these individuals, instead of using the REG (regular) pay code, the pay code FSREG – FoodService REG is used, and the value of ExcludeInMinimumWageCalculation is set to True. If they don’t make enough in tips, staffing companies will then be prevented from not paying the minimum wage.
|Admin Tools location:||System Category > Transaction Type > Property tab|
|Valid values:||True: Use this value for FoodService REG (FSREG) pay rate. This setting will exclude pay codes from the federal minimum wage check when verifying time entry batches.|
|False: Use this value for regular, overtime, and double-time pay rates.|
|Where the setting is reflected...||Bottom portion of automatic email that is sent with paycheck stub.|
Time Entry Section
For the net weighted pay rate, the item pay is combined for all transaction types having ExcludeInMinimumWageCalculation set to True, and then the total item pay is divided by sum of REG, OT, and DT Hours.
- (Reg Time + OT – Boots) / (Reg Unit + OT Unit) = (4.00 + 5.00 – 5.00) / (1 + 1) = 4.00/2 = 2.00
Since the calculated pay rate (2.00) is less than the federal wage, an error message would be displayed while verifying the batch.