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Set Up Overtime Rules

Overtime (OT) rules are configured per Employment Type. Choose a preset (Federal, California) or create custom thresholds, then map Pay Codes to each multiplier. OT is calculated when a timesheet is Approved or Locked.

Before you begin: Make sure your Employment Types are set up and that Time Billing Features are enabled under Company → Preferences.

Jump to

  1. Go to Company → People → Employment Types.
    Employment Types list showing Overtime Configuration section
  2. Open an Employment Type and select Overtime Configuration → Edit Section.
    Overtime Configuration card with Edit Section button
    Overtime editor showing preset and custom options
  3. Choose a Preset (Federal/California) or build a Custom rule, then assign Pay Codes to each multiplier.
Best practice: Confirm thresholds and multipliers for your jurisdiction with your HR/Legal team before enabling rules.
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Presets (Federal, California)

  • Federal — Weekly threshold; OT paid at 1.5× above the weekly full‑time hours you define. 
    Federal preset showing weekly threshold and 1.5x
  • California — Daily and weekly thresholds (for example: >8 hrs/day = 1.5×; >12 hrs/day = 2×; >40 hrs/week = 1.5×) with optional 7th consecutive day components. 
    California preset with daily, weekly and 7th day options

Custom rules

  • Define hours per day and/or hours per week thresholds.
  • Assign one or more multipliers (e.g., 1.5×, 2×).
  • Map a Pay Code to each multiplier.
  • If you start from a preset and make any edits, the configuration converts to Custom.
    Custom configuration derived from a preset

7th consecutive day (note)

7th‑day components are available with California‑style multipliers. If you need to change those multipliers, remove the 7th‑day components first, then re‑add them as needed.

Pay Codes & multipliers

  • One‑to‑one mapping: Each Pay Code is associated with exactly one multiplier (and vice versa).
  • Example: All 1.5× rules (daily or weekly) can share the same Pay Code (e.g., OT1).

Changing rules

  • Activate the rule and click Update. To modify thresholds or remove components, reopen Edit Section.
  • Edits affect future calculations. To re‑apply OT to previously approved periods, Undo Approval / Unlock the timesheet, make any needed edits, then re‑approve/lock to recalculate.

Notes & limitations

  • Only worked time counts toward OT; Time Off is excluded.
  • Changing the company Start of Week impacts semi‑monthly OT and will clear existing semi‑monthly OT calculations; re‑approve/lock to recompute.
  • Changing the Timesheet Model can remove existing timesheets, approvals, and overtime history. Plan changes carefully.
  • OT is applied when timesheets are Approved/Locked. Edits after approval require reopening to recalculate.

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