When this option is enabled the system will look at the actual hours entered in the Time and Income screen for an employee in this situation and where their higher than normal hour’s will cause their effective hourly rate to drop below $15.25 the payroll will adjust their rate up to a maximum of $15.25 and pay the employee the difference. In the example here the employee is normally paid $20 per hr for 40 hrs.
Recently there has been coverage in the media regarding workers in the farming, horticulture and viticulture sectors not being paid the Minimum Wage. This can happen, especially with farm workers, where they have a “Salary” for a set number of hour but end up working higher hours without being paid more. When this happens their effective hourly rate can drop below the minimum wage.
In the Company Setting screen there is a new option: – “Auto top up pay rate to meet the Minimum Wage”
If you need help with this scenario, please contact the Support Team