To add a set of Overtime Rules, go to Setup > Rules > Overtime Rules and click Add.
Give the overtime rules a name.
Under Overtime Operations, select "Weekly", "Biweekly", or "Custom", depending on the time range the system should use to add up your employees' hours for overtime calculation.
In the same line, under OT1 After, type in the number of worked hours which must pass before your employees start earning 1.5 times normal pay.
Under OT2 After, type in the number of worked hours which must pass before your employees start earning 2 times normal pay. This should include the number in OT1 After. E.g., if your employees earn 1.5 times hourly pay after 40 hours in a week, and start earning double time after 20 more hours beyond that, i.e., 60 hours in a week, you would type in 60 into OT2 After, not 20.
Under Reset On, select the day of week in which OT hour calculation should start over. To avoid any confusion, this should be the same day of week that your weekly or biweekly pay period begins.
If you selected "Custom" as your overtime period, enter the number of days, and specify a reference date from which to begin calculating your overtime periods.
For Daily, enter into OT1 After and OT2 After the number of hours your employees must work before earning 1.5 and 2 times their hourly pay, respectively.
In Consecutive Day, enter into OT1 After and OT2 After the number of hours your employees must work before earning 1.5 and 2 times their hourly pay, respectively, and specify how many days in a row they must work before this rule takes effect. If the rule resets every week, then choose the day of week under Resets On.
If you offer overtime pay for certain days of the week, enter into OT1 After and OT2 After the number of hours your employees must work before earning 1.5 and 2 times their hourly pay, respectively, across from the day of week this rule should apply.
Under Additional, you can specify in Minimum Time ... ?, and specify in OT1 Pay Factor and OT2 Pay Factor if your OT1 and OT 2 are not 1.5 and 2 times regular pay, respectively.
Click Save to commit the changes.
You can have more than one set of Overtime Rules. Be sure to go to Employees > [individual employee] > Employment > Policies > Overtime Rules and select the rule which should apply to that employee.
Please note that for overtime calculations, only hour types defined as Full or Partial under Participation will count toward the total, and that hour types defined as Partial participation cannot be elevated to overtime. E.g., let's say Regular time is defined as Full, and Personal time is defined as Partial, and Vacation time is defined as None, and your company's overtime policy is defined as OT1 After 40 hours in a week, resetting on Sunday. If Jane Doe takes 8 hours of personal time Monday, and clocks 32 hours Tuesday through Friday, any Regular hours put in on Saturday will count as 1.5 times hourly, but any Personal or Vacation time will only count as straight time.