OBBBA OT Classification is an overtime tracking option that classifies overtime results into two buckets: Qualified OT and Non-Qualified OT.
This feature helps customers and employees estimate deductible overtime premium amounts for tracking and reporting purposes.
This article applies to Time Tracking admins, payroll admins, HR, managers, and employees with view access.
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 premium amount is for informational purposes only and is not a final payroll or tax calculation.
What this feature does
OBBBA OT Classification performs an additional classification step after your existing overtime rules run.
Your current overtime rules still determine when overtime and double time are generated, such as weekly overtime, daily overtime, or consecutive-day overtime.
After those rules generate overtime results, OBBBA OT Classification allocates eligible overtime hours into the following system time codes:
Qualified OT (QOT)
Non-Qualified OT (NQOT)
Important: This feature does not change how overtime is calculated for payroll purposes. It only classifies the overtime outputs your current overtime rules already produce.
Classification logic
Employee time entries
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Existing overtime rules run
Weekly, daily, consecutive-day, or double time
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Overtime results are generated
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OBBBA OT Classification runs
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Qualified OT (QOT) and Non-Qualified OT (NQOT) are assigned
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Estimated premium amount is calculated
This process helps classify overtime for tracking and reporting. It does not replace your overtime rules and does not change payroll calculations.
How qualified and non-qualified overtime are determined
The system uses a threshold across the selected overtime period to determine whether overtime hours are qualified.
Qualified OT: Overtime hours that occur after the employee exceeds the configured threshold within the selected period.
Non-Qualified OT: Overtime or double time hours that occur before the employee exceeds the configured threshold within the selected period.
The hours used to determine whether the employee exceeded the threshold are based on the admin-selected considered time codes.
Note: Only paid time codes are available in the considered time codes list.
Supported time periods
When an admin selects an overtime period, the threshold applies across the entire selected period.
Weekly: The threshold is 40:00 across the week by default.
2 Weeks: The threshold is 80:00 across the two weeks by default.
Custom Days: The threshold is based on the total hours across the selected number of days.
The threshold field label updates to reflect the selected overtime period.
Estimated premium amount
When Qualified OT hours exist, WorkEasy computes an estimated overtime premium amount for tracking.
Formula: Estimated premium amount = base rate × 0.5 × Qualified OT hours.
Important: This estimate does not contribute to gross pay, and it does not modify hour totals.
This estimate is stored for downstream use, such as reports, exports, and integrations, depending on your configuration and partner support.
Where you can see the results
Once enabled, you may see Qualified OT and Non-Qualified OT in the following areas:
Timesheets
Reports
Exports
Integrations, depending on payroll partner guidance and configuration
Who can configure and who can view
Admins and users with access to overtime configuration can configure this feature.
Managers, employees, payroll users, and other users can view the results based on their existing privileges to view timesheets, reports, and exports.