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Automating Salary Basis Conversion Based on FLSA/Statutory Threshold When FTE Changes

in Compensation 1 comment

Summary:

We are implementing Oracle HCM Cloud for a federal client, with Core HR and Base Compensation in Oracle HCM Cloud. Payroll will remain in PeopleSoft for Phase 1, with a daily outbound integration from Oracle HCM to PeopleSoft.

The client has a compliance requirement involving employees who are currently classified as exempt or computer professional and paid on a salaried/monthly Salary Basis.

Business Requirement: When an employee's FTE/scheduled hours are reduced, the employee's salary may fall below an applicable statutory compensation threshold for their exemption category.

The client requires the system to:

  1. Detect and notify when an FTE/schedule change causes the employee's effective compensation to fall below the applicable statutory threshold.
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