Key updates to overtime for employees and departments

Beginning June 1, 2026, updates will take effect that change how overtime is calculated and how it appears on your payslip. These enhancements are being made to ensure compliance with federal requirements and updated W‑2 overtime reporting related to the “One Big Beautiful Bill.” These changes include:

  • New time calculation tags providing a clearer view of overtime hours.
  • Improved tracking of total hours worked, especially for employees with multiple positions.
  • Overtime will move from a static rate to calculation based on the FLSA regular rate, which may include certain differentials or premium pay.

What This Means for Employees

  • In time entry, most employees will not notice a change unless individual time block tags are reviewed.
  • On pay slips, two lines associated with overtime will be displayed, instead of one. One line, FLSA Hours Worked 1.0, will display the hours in excess of 40 paid at the regular rate. Another line, FLSA OVT Differential 0.5, will add half of the FLSA regular rate to hours over 40 to equal time and a half.
  • Employees with multiple positions will see overtime calculated across all applicable hours.

What This Means for Departments

Departments will notice updates in:

  • Time entry views
  • Payroll reports

If your department uses Worker Position Earning-level costing allocation for overtime, you will need to update your allocations to align with the new earnings structure.

New Salaried Overtime Earnings:

FLSA Hours Worked – FHWOT_1.0

FLSA OVT Differential – OVT_0.5

FLSA Academic Hours Worked – AHOVT_1.0

FLSA Academic OVT Differential – OVT_A0.5

New Hourly Overtime Earnings:

FLSA Non-Student Hours Worked – HOT_1.0

FLSA Non-Student Hourly OVT Differential – H_OVT0.5

FLSA Student Hours Worked – SOT_1.0

FLSA Student Hourly OVT Differential – SH_OVT0.5

FLSA Faculty Hourly Hours Worked – FHOT_1.0

FLSA Faculty Hourly OVT Differential – FH_OVT0.5

Employees and Departments will see these changes reflected on the June 25, 2026 payday.


Questions or concerns? Reach out via the Workday Service Desk!