Setting Up Overtime Rules in VeriClock

Learn how to configure overtime rules in VeriClock to accurately calculate overtime pay and stay compliant with labor requirements. This guide explains how to enable overtime, create and assign overtime rule sets, define rules based on daily hours, weekly hours, consecutive days, special dates, time of day, or averaging agreements, and link overtime time types to payroll items and reports.

Overtime rules allow you to create multiple Overtime Rule Sets.  Each Rule Set can be assigned to one or more employees and can includes one or more rules that define Overtime hours.  Rules can be configured to apply to: 

• Hours worked in a Day
• Hours worked in a payroll week (as defined by your payroll settings work week)
• Hours worked on Consecutive days
• Average Hours Worked over a selected Time Period
• Hours worked on Special Dates
• Hours Worked at a Specific Time of Day
• Hours Worked on Specific Days of the Week

This guide will show you the basic steps to Enable Overtime Calculations and Create a Rule Set.

While this guide will go over basic set up of Overtime rules, we recommend to contact our Customer Care team to assist you with this feature.

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You must complete the following steps to ensure your system is configured correctly:

Step 1 of 4: Enable the feature

Step 2 of 4: Create A Ruleset

Step 3 of 4: Link time codes to payroll items

Step 4 of 4: Update your reports to include new overtime data fields

You must complete all four steps to configuring your rule in order to ensure the feature works as intended.  

Step 1 of 4: Enable the feature

Overtime must be enabled to access the rule set up. You can do that by clicking Settings > Time > Overtime > check Enable Overtime Calculations> > Save button

Step 2 of 4: Create a Ruleset

 Click Add New Ruleset to begin creating your overtime criteria. Give your overtime ruleset a name and click Add Rule. 

Use the following guides to create specific types of Rules within a Rule Set:

• Hours worked in a Day - Use this to create a hrs per day rule. ie. hours worked after 8 hrs /per day is overtime.
• Hours worked on Consecutive days - Set an overtime rate for the 6th or 7th consecutive day worked in a row.
• Hours worked on Special Dates - This rule can be used to track Federal or Stat holidays, setting the designated special days to overtime.
• Hours worked during a Payroll Week - This rule would be used to set any hours over x hrs /per week to overtime

When creating an overtime rule, you can have that time go to a default time type or you can create a new time type. See Create A New Time Type Using An Overtime Rule for more information.

After creating your overtime ruleset, click save.

Check the default box to apply the overtime ruleset to all employees not specified in a different overtime ruleset, or click the wrench to assign the ruleset to specific employees. *Note: each employee can only be applied to a single overtime ruleset.*

Step 3 of 4: Link Time Codes to Payroll Items

Now that you have created the criteria for your special overtime rule, you will need to link it to a payroll item to ensure that the correct multiplier is applied, and your data is accurately shown in reporting. If your overtime rule is set to Regular, Overtime 1 or Overtime 2, then you will not need to create a new payroll item.

To link your payroll item, click on Settings > Payroll Items > Add New Payroll Item

You will need to complete all the necessary fields to ensure your newly created overtime rule criteria is applied correctly.

• Name: This must be an exact match to the name you typed in the overtime rule
• Description: information entered here will tell your administration team what this payroll item is for
• Wage Type: Select Overtime from the drop down menu - this will allow you to link to a wage, and define a multiplier
• Linked Payroll Item: this determines which payroll item the multiplier value will be applied to. Choose Regular from the drop down menu.
• Multiplier: this will be a numerical value that you wish to multiply the employees regular rate by for your defined overtime rule

Click the Save button once you have entered all the required data to create & link your payroll item to the overtime rule.

Note that you also have to add the wage for each employee under their profile.  See here for more details.

**If you created a new payroll item, you will need to connect that payroll item with a payroll item rule

**Important Note: If creating a payroll item rule that maps a job or service item to overtime, that job or service item CANNOT be set as overtime exempt. Setting a job/service item as overtime exempt, will block any hours for that job/service item from contributing to overtime.** See Adding and Editing Jobs & Service Items for information on confirming a job and/or service item is not set to overtime exempt.

Step 4 of 4: Update Your reports to Include New Overtime Data Fields

You now must ensure that your custom overtime will appear on your reports.  Specifically, you need to include the columns Hours: Regular, Hours: Overtime 1 and Hours: Overtime 2

Click here to learn How To Configure Your Reports

Average Daily Hours During Seleted Period Report - This is a custom report for tracking the number of days worked and average hours worked per employee within a specified date range. This report can be used to see if an employee qualifies for a paid or statutory holiday, along with the number of hours that employee qualifies for. Contact VeriClock support to have this report enabled in your account.