Purpose Statement

Time Off Deduction Rules allow administrators to establish automated policies for how time off requests impact an employee's available leave balance. This feature ensures consistent application of time off policies across the department by defining specific rules for different qualifiers and time off types (vacation, sick leave, comp time, etc.). By configuring deduction rules, administrators can automate the calculation of time off balances, reducing manual tracking errors and ensuring compliance with departmental policies and labor agreements.

Background Information

Time Off Deduction Rules provide a flexible framework for managing how different types of leave are calculated and deducted from employee balances. Organizations often have complex time off policies where the same absence may need to be deducted differently based on various factors:

• Different employee groups may have different accrual rates or deduction methods based on rank, assignment, or bargaining unit
• Different time off types (vacation vs. sick leave vs. comp time) may require different deduction calculations
• Actual time off taken may not always equal the amount deducted (for example, a 4-hour absence during a 24-hour shift might deduct differently than the same absence during a 12-hour shift)

This feature is commonly used in scenarios such as:

• Implementing FLSA-compliant time off tracking for different work schedules
• Managing Kelly Day or other scheduled leave programs
• Applying different deduction rates for partial shift absences
• Establishing minimum deduction thresholds (e.g., absences under 1 hour don't trigger deductions)

Required Permissions

To configure Time Off Deduction Rules, users must have:

• Access Scheduling
  
• Access Setup

Video

Step-by-Step Guide

Accessing Time Off Deduction Rules

1. Navigate to Scheduling > Setup from the main menu.
2. Click on Time Off Settings in the setup options.
3. Select Deduction Rules from the Time Off Settings menu.
   

            

Creating a New Deduction Rule

4. Click on Add Deduction Rule to begin creating a new rule.
   

            

Defining Rule Scope

5. Select the qualifier the rule will affect from the dropdown menu.

   • Qualifiers allow you to apply different rules to different employee groups 
   • You can "Select All" to apply the rule universally or choose specific qualifiers
     

            

5. Select the time off types the rule will affect.

   • Choose which leave categories this rule applies to (vacation, sick leave, personal time, comp time, etc.)
   • You can select multiple time off types for a single rule
   • Each time off type can have different deduction rules applied
     

            

Configuring Real (Actual) Hours

1. Fixed: A singular, specific amount of time (e.g., exactly 1 hour)
1. Use this when the rule applies to a precise duration
   
2. Example: "Absences of exactly 4 hours"
   

            

1. Range: A period of time spanning from a minimum to a maximum (e.g., 1 to 2 hours)
   
1. Use this when the rule applies to absences within a time bracket
   
2. Example: "Absences between 1 and 4 hours
   

            

Setting Deduction Type and Amount

Determine your deduction type: Hours or Shifts.

8. If deducting by Hours:

   • Set the deducted amount using one of two methods:
     • Fixed: A specific number of hours deducted regardless of actual time off (e.g., always deduct 4 hours)
     • By Rate: A proportional calculation based on actual hours (e.g., deduct 1.5x actual hours taken)
       

            

8. If deducting by Shifts:
   

   • Set the deducted amount by the number of shifts
   • Specify how many shifts should be deducted from the balance
   • Useful for shift-based schedules where time off is tracked in full or partial shift increments
     

            

Saving the Rule

9. Click on the Save button in the Rule of Time section to save the deduction parameters.
10. Click Save again in the Qualifiers section to finalize and activate the rule.
    

Best Practices

Rule Configuration:

• Start with broad rules and refine as needed - Begin with general deduction rules and add specific exceptions only when necessary
• Test rules with sample scenarios - Before activating rules, test them with hypothetical time off requests to verify calculations
• Document your rule logic - Maintain separate documentation explaining why each rule exists and what policy it implements
• Use qualifiers strategically - Only create qualifier-specific rules when policies genuinely differ between groups; universal rules are easier to maintain

Deduction Methods:

• Consider shift patterns - For 24-hour shifts, shift-based deductions often make more sense than hourly deductions
• Address partial shift absences - Create range-based rules to handle scenarios where employees leave mid-shift
• Account for minimum thresholds - Some departments don't deduct for absences under a certain duration (e.g., less than 1 hour)
• Align with FLSA compliance - Ensure deduction rules comply with FLSA regulations for your jurisdiction

Maintenance:

• Review rules annually - During policy review periods, verify that deduction rules still reflect current agreements
• Communicate changes clearly - When modifying rules, notify affected personnel about changes and effective dates
• Monitor for unintended consequences - After implementing new rules, review actual deductions to ensure they're working as intended
• Keep rules simple when possible - Complex rule sets are harder to explain to staff and more prone to errors

Common Mistakes to Avoid:

• Creating overlapping rules that conflict with each other
• Setting up rules before configuring the necessary qualifiers and time off types
• Forgetting to save in both the Rule of Time section AND the Qualifiers section
• Making rules too granular, creating unnecessary administrative burden
• Not considering how rules interact with accrual policies

Troubleshooting & FAQs

Q: The deduction rule I created isn't being applied to time off requests. Why?

A: Check the following:

• Verify you saved the rule in both the Rule of Time section AND the Qualifiers section
• Confirm the time off request matches the qualifier criteria (right rank, battalion, etc.)
• Ensure the time off type in the request is included in the rule configuration
• Check that the actual hours fall within the Fixed or Range parameters you specified
• Verify the rule is active and not in draft status

Q: Can I apply different deduction rules to the same qualifier for different time off types?

A: Yes. You can create multiple rules for the same qualifier, each targeting different time off types. For example, Battalion A might have one rule for vacation (deduct by shifts) and another for sick leave (deduct by hours).

Q: What happens if an employee's time off request falls outside all configured ranges?

A: If no rule matches the scenario, the system will typically default to deducting the actual hours taken. It's recommended to create a "catch-all" rule with a wide range to handle edge cases.

Q: Can I have a rule that deducts zero hours for certain circumstances?

A: Yes. You can set a Fixed deduction amount of 0 hours, which can be useful for certain types of excused absences or paid administrative leave that shouldn't reduce balances.

Q: How do I handle employees who work different shift lengths?

A: Use qualifier-based rules to create separate deduction rules for each shift type. For example, 24-hour shift personnel might have shift-based deductions while 8-hour staff have hourly deductions.

Q: What's the difference between Fixed and Rate deductions when using Hours?

A: Fixed deductions always remove the same amount regardless of actual time off (e.g., any absence deducts 4 hours). Rate deductions are proportional (e.g., 1.5x actual time, so 2 hours off deducts 3 hours).

Q: Can I see how a rule will affect a specific time off request before approving it?

A: Yes. When viewing a time off request, the system will show the calculated deduction based on applicable rules before you approve it.

Q: What happens if multiple rules could apply to the same time off request?

A: The system applies the most specific rule first. Qualifier-specific rules take precedence over universal rules. If multiple rules of equal specificity exist, contact your system administrator to resolve the conflict.