Add or Update Overtime

Overtime rules are configured during onboarding (in the Initial Setup Wizard). If you need to change those rules or create new ones, follow these instructions.

1. Click Global Settings > Time Tracking > Overtime.

2. Click Create Rule.

3. Enter a rule Name and select a Starting on date.

4. Select the Audience: Everyone, Specific group, or Specific employee.

   Note: Selecting Do Not Track Overtime excludes this audience from overtime calculations.

5. Select one or more Overtime Type options based on your company’s overtime requirements.
   

   Overtime Type settings and examples

   The following table describes each overtime Type, its available settings, and common configuration examples.

   Type	Setting	Description	Example
   Weekly	Weekly	Calculates overtime within a standard 7-day workweek.	Employees earn overtime after working more than 40 hours from Monday through Sunday.
   	2 weeks	Calculates overtime across a 14-day period.	A healthcare organization calculates overtime over a biweekly pay cycle.
   	Custom days	Calculates overtime across a custom number of days.	A manufacturing company uses a 10-day rotating overtime cycle.
   	Output time code	Assigns overtime hours to a specific overtime code.	Overtime hours appear separately from regular worked hours in payroll reports.
   	Overtime 2	Applies a secondary overtime threshold.	California example: Employees earn double time after working more than 12 hours in one day.
   Daily	Daily after hours/day	Triggers overtime after employees work more than a defined number of hours in one day.	California example: Employees earn overtime after working more than 8 hours in one workday.
   	Output time code	Assigns daily overtime hours to a specific overtime code.	Daily overtime hours are separated from regular worked hours in payroll reports.
   	Overtime 2	Applies a second daily overtime threshold.	California example: Employees earn double time after working more than 12 hours in one day.
   On the 6th consecutive days	On 6th consecutive day worked, after	Triggers overtime after six consecutive workdays.	Employees working six consecutive retail shifts begin earning overtime at the start of the sixth day.
   	Output time code	Assigns sixth-day overtime hours to a specific overtime code.	Sixth-day overtime hours are tracked separately for payroll processing.
   	Overtime 2	Applies a second overtime threshold on the sixth consecutive day.	Double time begins after employees work more than 8 hours on the sixth consecutive day.
   On the 7th consecutive days	On 7th consecutive day worked, after	Triggers overtime or double time after seven consecutive workdays.	California example: Employees earn overtime or double time after working seven consecutive days in one workweek.
   	Output time code	Assigns seventh-day overtime hours to a specific overtime code.	Seventh-day overtime hours are separated for payroll compliance and reporting.
   	Overtime 2	Applies a second overtime threshold on the seventh consecutive day.	California example: Employees earn double time after working more than 8 hours on the seventh consecutive day.
   Time of Day	Day(s) of week	Applies overtime rules only on selected days.	Weekend shifts receive overtime while weekday shifts follow standard pay rules.
   	After	Triggers overtime after a specific time of day.	Employees earn overtime after working past 6:00 PM.
   	Output time code	Assigns time-of-day overtime hours to a specific overtime code.	Evening overtime hours appear separately on payroll reports.
   	Overtime 2	Applies a second time-based overtime threshold.	A higher overtime tier applies after midnight.
   Shift	On a shift, after hours/shift	Triggers overtime after employees work more than a defined number of hours within one shift.	Employees working more than 8 hours in one shift earn overtime pay.
   	Output time code	Assigns shift-based overtime hours to a specific overtime code.	Shift overtime is tracked separately from weekly overtime in payroll reports.
   	Overtime 2	Applies a second overtime threshold within the same shift.	California example: Employees earn double time after working more than 12 hours in one shift.
   OBBBA OT Classification	Consider the following time codes	Defines which time codes are included in the overtime classification calculation.	Worked Hours, Overtime, and Double Time are included in the classification calculation.
   	Qualified Overtime	Defines the threshold for hours classified as qualified overtime.	Overtime hours above 40 hours/week are classified as qualified overtime.
   	Qualified OT	Assigns qualifying overtime hours to a qualified overtime time code.	Qualified overtime hours are exported separately for payroll reporting.
   	Non-Qualified OT	Assigns overtime hours that do not meet qualification rules to a non-qualified overtime time code.	Non-qualified overtime hours are tracked separately for auditing purposes.

6. Click Save.