In the BackOffice, you can customize your account's overtime rules to track your overtime in the Overtime Settings module (Settings > Timecards > Overtime Settings).
The Overtime Settings module includes the following two sections:
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Overtime and Double Time Settings: This section allows you to enable weekly overtime, daily overtime, and daily double time and set the rules for calculating overtime (weekly and daily) and double time (daily).
- Weekly Overtime: The Weekly Overtime option allows you to start calculating an employee's hours as overtime once they reach a set amount of regular hours worked in the week (e.g., 40 hours per week). Overtime is calculated at 1.5 times the employee's wage for any hours scheduled or worked beyond the set number of weekly hours. The workweek is set to Monday-Sunday.
- Daily Overtime Hours: The Daily Overtime Hours option allows you to start calculating an employee's hours as overtime once they reach a set amount of regular hours worked in the day (e.g., 8 hours per day). Overtime is calculated at 1.5 times the employee's wage for any hours scheduled or worked beyond the set number of daily hours.
- Daily Double Time Hours: The daily double time option allows you to start calculating an employee's hours as double time once they reach a set amount of regular hours worked. Double time is calculated at two times the employee's wage for any hours scheduled or worked beyond the set number of daily hours. Overtime will still be calculated at 1.5 times the employee's wage for any hours worked beyond the value set for Daily Overtime Hours but less than the value set for Daily Double Time Hours. Once the work hours exceed the value set for Daily Double Time Hours, all additional hours will be calculated at two times their wage.
- Seventh-day Rule: Many states (e.g., California) require you to pay employees overtime if they work for seven consecutive days. If this applies to you, you can enable the 'Seventh-day Rule' option and specify how to pay overtime when an employee works seven consecutive days. You can choose between two options: 1) pay overtime for the first 8 hours and double time thereafter, or 2) pay overtime only.
Configure Overtime Settings
Overtime and Double Time Settings:
- Head to Settings > Timecards > Overtime Settings from the left-side navigation menu.
- In the Overtime and Double Time Settings section, make your selections:
- Weekly Overtime Hours: Check the box if this option applies to you and specify the maximum number of regular (non-overtime) hours worked per employee per week before they begin earning overtime pay. The default is 40 hours per week.
- Daily Overtime Hours: Check the box if this option applies to you and specify the maximum number of regular (non-overtime) hours worked per employee per day before they begin earning overtime pay. The default is 8 hours per day.
- Daily Double Time Hours: Check the box if this option applies to you and specify the maximum number of hours worked per employee per day before they begin earning double time pay. The default is 12 hours per day.
2. Seventh-day Rule:
- Head to Settings > Timecards > Overtime Settings from the left-side navigation menu.
- In the Seventh-day Rule section, check the box and specify how to pay overtime when an employee works seven consecutive days. You can choose between paying employees overtime for the first 8 hours and double time thereafter or overtime.
Overtime Guidelines
Per the Fair Labor Standards Act (FLSA), covered nonexempt employees must receive overtime (OT) pay for all hours worked over 40 in a workweek at a rate not less than time and one-half their regular pay rate. See the complete guidelines by visiting the Department of Labor's Overtime Pay page, or click here to find information on exempt employees.
Overtime Disclaimer
Radish is not responsible for compliance with all applicable laws and regulations. Please contact an attorney or other licensed professional for advice specific to your circumstances. Additional information on overtime requirements can be found on the federal and state regulator websites.