HRchitect Enables Complex Activity Tracking Transformation for Building Materials Client

Client Background

Our Client is a leading global building materials organization operating across multiple regions with a diverse workforce and complex pay structures. With more than 80,000 global employees, managing compliance, accuracy, and consistency across our Client’s workforce systems is critical to supporting its large-scale operations.

To support evolving business and regulatory requirements, our Client engaged HRchitect to enhance and implement capabilities within its WorkForce Software environment, specifically focused on activity tracking, rate configuration, and compliance with new overtime regulations.

The Challenge

Our Client faced a dual challenge: implementing a complex activity tracking and rates framework while adapting to new overtime regulations under the One Big Beautiful Bill Act (OBBBA).

Key challenges included:

• Complying with the “No Tax on Overtime” regulation (2025–2028), which allows a federal income tax deduction on the premium portion (0.5x) of qualified FLSA overtime
• Accurately identifying and classifying qualified vs. non-qualified overtime hours
• Designing a complex activity tracking configuration aligned to activity-based costing and varied employee roles
• Ensuring minimal disruption to existing configurations and employee time entry experiences
• Preparing for a seamless transition once the regulation expires
• Meeting strict deadlines while managing system and regulatory complexity

Client Profile

• Our Client manufactures and supplies the fundamental materials used to build and maintain public infrastructure, commercial properties, and residential buildings
• American headquarters in Atlanta, Georgia
• Global headquarters in Dublin, Ireland
• 80,000+ employees across 4,000 global locations
• Partnered with HRchitect for its WorkForce Software Support

The Project

HRchitect partnered with our Client to deliver a flexible, compliant solution for activity tracking, rates implementation, and OBBBA support within WorkForce Software. During the engagement, HRchitect consultants provided accurate, reliable solutions, recommended best practices that aligned with compliance and operations, and reduced client frustration by simplifying complex decisions.

For activity tracking and rates implementation specifically, HRchitect consultants designed a flexible activity tracking-based framework that allows employees to allocate time across activity-based centers, link activities to appropriate pay rates for accurate costing, and build complex activity tracking tables, large templates, and advanced formulas. Furthermore, HRchitect consultants delivered a solution that aligned current processes with new system requirements, implemented notifications to proactively prevent payroll issues, and ensured minimal impact across employee roles during rollout.

OBBBA Solution Approach:
Given the temporary nature of the regulation, HRchitect prioritized flexibility and future-state readiness by delivering multiple tailored options:

Option 1: Reporting-Based Approach

• Delivered a detailed payroll report identifying qualified hours
• Clearly categorized tax-relevant hours for accurate compliance and reporting

Option 2: Reclassification Model (Employee Visibility)

• Reclassified overtime and double time into qualified vs. non-qualified categories
• Enabled visibility for employees across roles
• No rate calculations applied

Option 3: Transaction-Based Model (Payroll Visibility Only)

• Preserved existing overtime configurations
• Generated new transactions for qualified overtime/double time
• Limited visibility to payroll roles only
• No rate calculations applied

Option 4: Advanced Transaction + Rate Calculation Model

• Generated qualified overtime transactions without impacting employee time entry
• Maintained payroll-only visibility
• Introduced regular and blended rate calculations
• Leveraged activity tracking tables and formulas to ensure accurate totals and payments

Additionally, HRchitect provided guidance aligned to each option’s operational impact, built solutions to ensure a smooth transition once the regulation expires, and minimized employee disruption during both implementation and future changes.

Key Benefits

• Regulatory Compliance: Ensured 100% accuracy in identifying and classifying OBBBA-qualified overtime hours
• Flexible Solution Design: Provided multiple configurable approaches tailored to business needs
• Future-Ready Framework: Enabled seamless transition post-regulation without major system disruption
• Improved Payroll Accuracy: Enhanced validation through reporting, transactions, and automated logic
• Minimal User Impact: Preserved familiar employee experience across timesheets
• Scalable Activity Tracking Configuration: Supported complex costing and rate structures across roles
• Operational Clarity: Reduced complexity through clear recommendations and structured options

The Results

The engagement was delivered on time, meeting all deadlines while addressing both regulatory and technical complexity.

Our Client now operates with:

• A fully compliant OBBBA solution ensuring accurate identification of eligible overtime hours
• A flexible activity tracking and rates framework supporting complex workforce structures
• Multiple solution pathways that align with both current needs and future regulatory changes

The organization has increased confidence in payroll accuracy, reduced operational risk, and improved its ability to adapt quickly to evolving requirements. The solution has also reduced administrative effort associated with overtime classification and reporting, improving overall operational efficiency.

By combining deep technical expertise with a flexible, options-based approach, HRchitect enabled our Client to successfully navigate regulatory change and system transformation. Our Client is now equipped with a scalable, compliant, and future-ready workforce management solution, positioning the organization for continued operational efficiency and long-term success.