This article explains how WorkEasy classifies overtime results into Qualified OT (QOT) and Non-Qualified OT (NQOT). It describes how thresholds are applied, how considered time codes affect qualification, and how overtime rules interact with classification.
Compliance disclaimer
WorkEasy provides configurable tools to support overtime classification and reporting. You are responsible for configuring this feature to match your policies, labor agreements, and applicable laws. WorkEasy does not provide legal or tax advice. If you have questions about compliance, deductibility, or payroll treatment, consult your legal counsel and payroll provider. Any estimated values produced by this feature are informational only and are not final payroll or tax calculations.
Classification happens after overtime is calculated
OBBBA OT Classification does not create overtime. Your existing overtime rules determine when overtime or double time occurs.
Examples of existing overtime rules include:
Weekly overtime
Daily overtime
Consecutive-day overtime
Double time
After these rules generate overtime results, the system performs a classification step to allocate eligible overtime hours into QOT and NQOT.
Configuration determines how classification is applied
When OBBBA OT Classification is enabled, administrators configure the following settings:
Overtime Period such as Weekly, 2 Weeks, or Custom Days
Threshold expressed in HH:MM
Considered time codes used to determine when the threshold is exceeded
The threshold applies across the entire selected overtime period.
Examples of thresholds
Weekly: 40:00 hours across the week
2 Weeks: 80:00 hours across the two-week period
Custom Days: threshold based on total hours across the selected number of days
Considered time codes determine when the threshold is exceeded
The system uses the selected considered time codes to determine when an employee exceeds the qualification threshold.
Key behaviors:
Only paid time codes can be selected.
Worked Hours, Overtime, and Double Time are selected by default.
Admins can add or remove time codes depending on policy.
The considered time codes affect only the threshold calculation. They do not control which overtime codes are classified.
Classification definitions
Qualified OT (QOT)
Overtime hours that occur after the employee exceeds the configured threshold within the selected period.
Non-Qualified OT (NQOT)
Overtime or double time hours that occur before the employee exceeds the configured threshold.
What overtime hours are eligible for classification
The system classifies overtime outputs generated by existing overtime rules for the selected period.
Overtime and double time can both be classified.
The system splits the overtime results into QOT and NQOT according to when the threshold is exceeded.
Consistency rule:
Qualified OT hours plus Non-Qualified OT hours equals the total overtime hours eligible for classification within the period.
If no overtime exists during the period, both QOT and NQOT remain zero.
Examples
Example 1: Weekly period exactly at the threshold
Configuration
Period: Weekly
Threshold: 40:00
Considered time codes: Worked Hours
Scenario
Total considered hours: 40:00
Overtime output: none
Results
QOT: 0:00
NQOT: 0:00
Example 2: Weekly overtime after the threshold
Configuration
Period: Weekly
Threshold: 40:00
Considered time codes: Worked Hours
Scenario
Total considered hours: 45:00
Existing overtime output: 5:00
Results
QOT: 5:00
NQOT: 0:00
Example 3: Daily overtime before the weekly threshold
This scenario can occur when daily overtime rules generate overtime even though the weekly threshold has not been reached.
Configuration
Period: Weekly
Threshold: 40:00
Considered time codes: Worked Hours
Scenario
Total considered hours: 39:00
Daily overtime output: 2:00
Results
QOT: 0:00
NQOT: 2:00
Example 4: Two-week period
Configuration
Period: 2 Weeks
Threshold: 80:00
Considered time codes: Worked Hours
Scenario
Total considered hours across two weeks: 86:00
Total overtime generated: 6:00
Conceptual result
Overtime occurring before the employee crosses 80:00 is classified as NQOT.
Overtime occurring after the employee crosses 80:00 is classified as QOT.
California overtime scenarios
California overtime rules can generate overtime before the employee reaches the weekly threshold.
Common examples include:
Daily overtime
Consecutive-day overtime
Double time
Classification handles these scenarios as follows:
If the employee does not exceed the threshold during the period, those overtime hours are classified as NQOT.
If the employee exceeds the threshold later in the period, overtime occurring after that point can be classified as QOT.
California example A
Daily overtime occurs, but weekly hours remain below 40.
Result: the overtime hours are classified as NQOT.
California example B
An employee crosses the 40-hour threshold on Thursday.
Daily overtime occurs on Wednesday and Friday.
Result:
Wednesday overtime is classified as NQOT.
Friday overtime is classified as QOT.
Recalculation behavior
If a timesheet is edited and overtime processing runs again, classification outputs are recalculated.
The results are deterministic and consistent.
QOT and NQOT values update automatically.
Duplicate classification entries are not created.
Troubleshooting
QOT and NQOT are missing
Confirm OBBBA OT Classification is enabled in the overtime configuration.
Confirm the timesheet produced overtime outputs.
Some screens display QOT and NQOT only when values are greater than zero.
The results are not what I expected
Review which time codes are selected as considered time codes.
Confirm the configured threshold.
If California overtime rules apply, confirm whether the employee exceeded the threshold during the period.
Related articles
Overview: OBBBA OT Classification
Configure OBBBA OT Classification in Overtime Configuration
Time codes: Qualified OT (QOT) and Non-Qualified OT (NQOT)
Timesheets: View Qualified OT and Non-Qualified OT
Reports: OBBBA Premium Summary and OBBBA Premium Daily Summary