Transaction Type Property - ExcludeInMinimumWageCalculation


Updated 07/13/2021


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.



ExcludeInMinimumWageCalculation properties

Admin Tools location: System Category > Transaction Type > Property tab
Default: False
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

In order for this to work, transactions are required to have one of the following transaction types along with FSREG:
  • REG
  • OT
  • DT


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.



In the example image below, there are four different transaction types. ExcludeInMinimumWageCalculation of Reg Time, OT and Boots are set to False, and FSREG is set to True. To calculate net weighted pay rate, it sums up the item pay of Reg time and OT, and subtracts the item pay of Boots (since the amount is negative), and divides the total item pay by sum of Reg and OT 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.



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