Overtime Rules

Each overtime rule contains the overtime settings for applied locations.

When an overtime rule is applied to a location, projected overtime will be calculated for that location on the schedule calendar. Users will then receive overtime warnings when creating or publishing shifts, and projected overtime will be included in scheduled labor reporting.

If the system preferences setting for overtime tracking is set to ‘R365 OT Rules’, the overtime rule for the location is used to calculate actual overtime hours and wages based on polled labor punches.

Learn more about overtime rules and labor rules in R365.

On an overtime rule, users can:

Security

The following permissions are associated with overtime rules:

Labor → Labor Rules → Overtime Rules
- View Overtime Rules
- Edit Overtime Rules
- Create Overtime Rules
- Delete Overtime Rules

These permissions can be added to custom user roles or individual users. The Permission Access report can be used to determine which user roles or users already have these permissions assigned. For more information, see User Setup and Security.

Navigation

Navigation Menu

Navigate to the Labor Rules page.
Select the Overtime Rules tab.
Select the desired overtime rule.

Overtime Rules Buttons and Fields

	Button/Field	Description
1	Save Button	Saves changes to the overtime rule.
2	Delete Button	Deletes the overtime rule.
3	Help Button	Opens the contextual help menu.
4	Expand Button	Expands the sidesheet to full screen, or collapses it when already expanded.
5	X (Close) Button	Closes the overtime rule without saving.
6	Name	User-entered name for the overtime rule.
7	Weighted Average Overtime (WAOT)	Indicates if OT premium rate is calculated for all employees who work multiple jobs. Learn more about WAOT calculations.
8	Minimum Wage	Minimum wage used as the ‘Job Rate’ in WAOT calculations for employees receiving the tipped minimum wage. Learn more about WAOT calculations. This field is only displayed when Weighted Average Overtime (#7) is enabled.
9	Use California WAOT Rate Calculation	Indicates if the California calculation method for weighted average overtime is used instead of the federal calculation method. Learn more about WAOT calculations. This field is only displayed when Weighted Average Overtime (#7) is enabled.
10	Overtime Types	Indicates which overtime types are enabled. Overtime is calculated for all enabled overtime types: Daily - Overtime is calculated when the employee exceeds a specific total number of hours for a business day. The 'Daily' overtime type cannot be configured in the same rule as the '24-Hour' overtime type. Weekly - Overtime is calculated when the employee exceeds a specific total number of hours in a week. 7th Day Consecutive - Overtime is calculated when the employee works all seven days during a week. 24-Hour - Overtime is calculated when the employee exceeds a specific total number of hours in a 24-hour period. The '24-Hour' overtime type cannot be configured in the same rule as the 'Daily' overtime type.
11	Overtime Settings	Overtime calculation thresholds for the overtime type. See overtime types below for additional field information.
12	Available Locations	Locations that the rule has not been applied to. Locations can only have one overtime rule applied to them. Locations that already have another overtime rule applied will not be listed in either the ‘Search Locations’ or ‘Applied Locations’ lists.
13	Search - Search Locations	Filters the Search Locations list for locations with the entered text.
14	Available Locations	Locations that the rule has not been applied to. Check the checkbox to select the location for bulk edit.
15	Already Applied Location	Location that the rule has already been applied to. Indicated with a checkmark.
16	Plus Button	Applies the rule to the associated location.
17	Available Location Count	Number of available locations.
18	+Apply All/+Apply Selected Button	When no available location checkboxes are checked, the +Add All button is displayed, which applies the rule to all available locations. When one or more available location checkboxes are checked, the +Add Selected button is displayed, which applies the rule to the selected locations.
19	Applied Locations	Locations that will calculate overtime earnings using the configurations of this rule. Locations can only have one overtime rule applied to them. Locations that already have another overtime rule applied will not be listed in either the ‘Search Locations’ or ‘Applied Locations’ lists.
20	Search - Applied Locations	Filters the Applied Locations list for locations with the entered text.
21	Applied Location	Location that the rule has been applied to. Check the checkbox to select the location for bulk edit.
22	-Remove All/-Remove Selected Button	When no applied location checkboxes are checked, the -Remove All button is displayed, which removes the rule from all locations. When one or more applied location checkboxes are checked, the -Remove Selected button is displayed, which removes the rule from the selected locations.
23	Applied Locations Count	Number of applied locations.

Overtime Types Buttons & Fields

Daily, Weekly, and 7th Day Consecutive Types

The configuration for the Daily, Weekly, and 7th Day Consecutive types all use the same layout. These types all contain a field for the hour threshold and a field for the overtime rate multiplier. If needed, additional tiers can be added to these types if the overtime rate multiplier changes after an additional threshold is met.

	Button/Field	Description
1	Hours Worked	The threshold at which additional worked hours will have the overtime rate applied.
2	Overtime Rate	The multiplier applied to hours worked past the associated threshold.
3	Trashcan Button	Deletes the threshold tier. This button is disabled if only one tier is configured.
4	+Add Tier Button	Adds an additional tier to the overtime type. The 'Hours Worked' thresholds for additional tiers must be greater than the previous tier.

24-Hour Type

The 24-Hour overtime type configuration and can be set up as 'Qualifying Wage' or 'Consecutive'.

Qualifying Wage

The 'Qualifying Wage' configuration for 24-hour overtime will calculate overtime for any employee who has a wage less than the entered 'Qualifying Wage'. Any hours worked over the total hours threshold within 24 hours of each starting punch will be overtime. With this configuration, the hours worked do not need to be consecutive.

	Button/Field	Description
1	Qualifying Wage	Employees with an hourly rate less than this amount will be eligible for 24-hour overtime.
2	Total Hours in 24 Hours	The threshold at which additional worked hours will have the overtime rate applied.
3	Overtime Rate	The multiplier applied to hours worked past the associated threshold.

Consecutive

The 'Consecutive' configuration for 24-hour overtime will calculate overtime for all hourly employees. With this configuration, the hours worked within a 24-hour period must be consecutive to qualify for 24-hour overtime. Consecutive hours are any hours that are separated by less than a specified number of off-the-clock minutes.

	Button/Field	Description
1	Consecutive Hours in 24 Hours	The threshold at which additional worked hours will have the overtime rate applied.
2	Overtime Rate	The multiplier applied to hours worked past the associated threshold.
3	Maximum Mins Between Punches	The maximum off-the-clock minutes between worked hours. If more than this amount of off-the-clock minutes are present between punches, the hours will not be considered consecutive.