State Agencies Bulletin No. 174

Subject
Changing Employee Type for Hourly and Exception Hourly Employees
Date Issued
July 12, 2000

Purpose

To explain agency procedures for updating Employee Type on the Position Data 2 panel and provide procedures for processing earnings for hourly and exception hourly employees

Affected Employees

Hourly and Exception Hourly employees

Effective Date

Immediately

Background

Users with update access to the Position Management panels may now change the Employee Type field on the Position Data 2 panel from H (hourly) to E (exception hourly) and from E (exception hourly) to H (hourly). The Employee Type field cannot be changed when a value of S (salaried) is displayed.

Description: Employee Types 

Hourly - When an employee is in a position that reflects Type H (hourly) on the Position Data 2 panel, the employee will be paid only when the agency enters the earnings code RGH and the number of hours to be paid in the Time Entry panel.

The begin and end dates of the RGH earnings will be the actual dates submitted by the agency in the Time Entry panel.

Exception Hourly - When an employee is in a position that reflects Type E (exception hourly) on the Position Data 2 panel, the employee will automatically be paid a fixed number of hours each biweekly period based on the number of standard hours on the employee's Job Data 2 panel.

The begin and end dates of the automatic earnings will be the begin and end dates of the payroll period being processed.

Agency Procedures: Changing Employee Type on Position Data Panels
and Automatic Updating of Incumbents Job Data Record

Path: Start-Manage Positions-Use-Position Data-(Agency) Update/Display All

  • Insert a row on the Position Data 1 panel.
  • Enter the appropriate effective date.
    For a vacant position, the effective date may be any date.
    For a filled position, the effective date must be the first day of the current or future pay period.
  • On the Position Data 2 panel, change the Employee Type from H to E for Exception Hourly or E to H for Hourly.
  • Save the data.
  • If the position is filled, the incumbent's Job Data record will be automatically updated to reflect the new type. A row will be inserted on Job Data with the action of Position Change (POS) and reason of Z11, Update of Position Data.
  • For an exception hourly, the standard hours on the Job Data 2 panel will default to 40 hours.

Agency Procedures: Filled Positions Hourly to Exception Hourly

Updating the employee's Job Data record when the employee's work schedule is less than 40 hours per week:
  • Insert a row on the employee's Job Data 1 panel.
  • Enter the effective date. The effective date must be the first day of the current or future pay period. Retroactive and mid-period actions will not be approved by OSC.
  • Select the action of DTA (data change) and the reason of CSH (change standard hours).
  • Increase the sequence number by 1.
  • Change the number of standard hours on the Job Data 2 panel to reflect the employee's weekly work schedule.
  • Save the data.
Time Entry Processing

No earnings code is required in the Time Entry Panel for the current period. However, since an exception hourly employee is paid automatically using the dates of the payroll period being processed, the agency must submit, if applicable, the earnings code RGH in the Time Entry Panel to report the hours and dates worked in a previous pay period that have not yet been processed. This RGH will be processed in addition to the earnings automatically calculated by the system for the current pay period.

Agency Procedures: Filled Positions Exception Hourly to Hourly

In addition to changing the employee's type on the Position Data 2 panel as described above, the agency must review the dates previously paid as an exception hourly in the Paycheck Data panel and report the earn code RGH in the Time Entry Panel only for dates and hours not yet paid.

Agency Procedures: Exception Hourly

Changing Standard Hours
  • To change the number of standard hours paid on a continuous basis:
  • Insert a row on the employee's Job Data panel.
  • Enter the appropriate effective date.
  • If applicable, increase the effective sequence number by 1.
  • Select the action of DTA (data change) and reason of CSH (change standard hours).
  • Change the number of standard hours on the Job Data panel to reflect the number of hours the employee will work each week.
Modifying Previous Pay Period Earnings

In the Time Entry panel, enter the earnings code RGH and the dates and number of hours underpaid or overpaid in the previous period. For overpayments, enter a minus sign before the number of hours.

Modifying Current Pay Period Earnings

In the Time Entry panel, enter the earnings code RGH, the exact begin and end dates of the payroll period being processed and the number of hours to be paid.

If no hours are due, enter 0

The RGH earnings entered in the Time Entry panel will override the system calculation for the current pay period, provided the exact begin and end dates of the payroll period are entered.

New Hire and Rehire Actions

When an employee who is hired or rehired as an exception hourly will work less than 40 hours per week, the agency must change the number of standard hours on the Hire or Rehire Panel when performing the hire or rehire action. The agency must also request a pay rate change using the action of PAY on the Job Action Request Panel.

Time Entry Processing:

If the effective date of the hire or rehire is within the dates of the pay period being processed, no action is required. The employee will be paid automatically based on the effective date and the number of standard hours on the Job Data 2 panel.

If the effective date of the hire or rehire is retroactive, the employee will be paid automatically for the current pay period only. The agency must submit the earn code RGH in the Time Entry

panel to pay earnings for dates that are prior to the dates of the pay period being processed. The employee will receive the RGH earnings in addition to the earnings calculated automatically by the system for the current pay period.

Removal Actions

When a removal (e.g. termination) is reported and the effective date is mid-pay period, the earnings will be automatically pro-rated based on the effective date and the number of standard hours on the Job Data 2 panel. Therefore, the earn code RGH is not required in the Time Entry panel.

Overtime Earnings: Hourly/Exception Hourly

To report overtime for hourly and exception hourly employees, enter the earnings code OTK in the Time Entry Panel and the dates and number of hours to be paid. In addition, enter the appropriate Bonus overtime code for employees who received the Bonus payment effective 3/31/00.

Verifications for Agencies using both Type "E" and "H" Positions

Agencies must remember to check the Position Data 2 panel before processing a hire, rehire, transfer or position change action for an hourly or exception hourly employee to confirm the employee type is appropriate for the employee being placed in the position.

Questions

Questions regarding this bulletin may be directed to the Payroll Audit mailbox.