Overtime rules define the thresholds and calculation methods used to determine employee overtime pay across locations and labor scenarios.
From this page, users can:
Security
Users must have the following permission to access Overtime rules.
Labor → Labor Rules → Overtime Rules → View 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.
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Select Admin from the left navigation rail.
Expand the Workforce category.
Select Labor rules.
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Enter all or part of the page name in the R365 global search bar.
Select the page from the results list.
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Overtime Rule Buttons and Fields
Overtime rules contains six sections:
Use the section navigation panel to move between sections while creating or editing a rule.
Header and Name & locations
Button/Field | Description | |
|---|---|---|
1 | New overtime rule | Displays the page for creating a new overtime rule. |
2 | Cancel | Discards changes and closes the overtime rule. |
3 | Create | Saves the overtime rule using the entered settings. Required fields need to be entered for the button to be enabled. |
4 | X (Close) | Closes the new overtime rule page and returns to the Labor rules page. |
5 | Section Navigation | Indicates the currently displayed section. Click to navigate to the desired section. |
6 | Name | The name of the overtime rule. |
7 | Locations | The location(s) where the overtime rule applies. |
Weighted average overtime calculation
Button/Field | Description | |
|---|---|---|
1 | Federal Weighted Average Overtime (WAOT) calculation | Selects the federal method for calculating weighted average overtime. |
2 | California Weighted Average Overtime (WAOT) calculation | Selects the California-specific method for calculating weighted average overtime. |
None | WAOT is disabled; the minimum wage field is visible. |
State minimum
Button/Field | Description | |
|---|---|---|
1 | Minimum wage | Sets the minimum wage amount used as the regular rate in weighted average overtime calculations when a tipped employee's wage is below the state minimum. |
Daily overtime
Daily overtime can be calculated based on either a business day or a 24 hour period, with 24 hour calculations qualified by consecutive hours or qualifying wage.
Business day
When calculate overtime is checked and business day is selected from the dropdown, these fields will show.
Button/Field | Description | |
|---|---|---|
1 | Calculate overtime based on hours worked in a | Enables daily overtime calculation and activates the period selection field. |
2 | Period dropdown | Selects whether daily overtime is calculated by business day or by a 24 hour period from the start of the shift. |
3 | Total daily hours worked | Displays when Business day is selected and defines the daily hour threshold for overtime calculation. |
4 | Overtime factor | Displays when Business day is selected and defines the multiplier applied to hours that exceed the daily threshold. |
5 | Add row | Adds a new daily overtime threshold and overtime factor row when Business day is selected. |
Consecutive 24 hour period
This set of fields appears only when daily overtime is calculated using a 24 hour period and consecutive hours are required to qualify for overtime.
Button/Field | Description | |
|---|---|---|
1 | Consecutive | Selects consecutive-hour qualification for daily overtime within a 24 hour period. |
2 | Consecutive hours in 24 hours | Sets the number of consecutive hours required to qualify for overtime within a 24 hour period. |
3 | Overtime factor | Sets the multiplier applied to hours that qualify for consecutive daily overtime. |
4 | Maximum mins between punches | Editable field for the maximum number of minutes allowed between punches for hours to be considered consecutive. |
Qualifying wage 24 hour period
When calculate overtime is checked, 24 hour day period is selected from the dropdown, and qualifying wage is selected, these fields will show. 
Button/Field | Description | |
|---|---|---|
1 | Qualifying wage of | Selects qualifying-wage criteria for daily overtime within a 24 hour period. |
2 | Qualifying wage | Defines the wage threshold below which hours qualify for daily overtime. |
3 | Total daily hours worked | Defines the total hours worked within a 24 hour period required to trigger overtime. |
4 | Overtime factor | Defines the multiplier applied to hours that qualify for daily overtime under qualifying-wage rules. |
Weekly overtime
Weekly overtime calculates overtime rates based on hours worked across a work week, including seventh-day thresholds.
Button/Field | Description | |
|---|---|---|
1 | Calculate overtime rate based on weekly hours worked | Enables weekly overtime calculation based on total hours worked in a work week. |
2 | Total weekly hours worked | Defines the number of hours worked on the seventh consecutive day that qualify for overtime. |
3 | Overtime factor | Defines the multiplier applied to hours that qualify for seventh-day weekly overtime. |
4 | Delete | Removes the selected weekly overtime rule row. |
5 | Add row | Adds a new seventh-day weekly overtime rule row. |
7th Day consecutive overtime
Seventh-day consecutive overtime applies when an employee works seven consecutive days within a work week.
Consecutive workday requirements differ by state. Use this information as general guidance and confirm state-specific rules through official regulatory sources.
Button/Field | Description | |
|---|---|---|
1 | Calculate overtime based on total hours worked on 7th day of a work week | Enables overtime calculation based on total hours worked on the seventh consecutive day of a work week. |
2 | Total hours worked on 7th day | Defines the number of hours worked on the seventh consecutive day that qualify for overtime. |
3 | Overtime factor | Defines the multiplier applied to hours that qualify for seventh-day consecutive overtime. |
4 | Add row | Adds a new seventh-day consecutive overtime rule row. |