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Setting Up Overtime Rules

Background:

Patriot’s Time & Attendance software automatically calculates overtime rules based on the requirements of the FLSA. However, your state or local government may require a stricter policy, or your company might have a special overtime policy. Patriot Time & Attendance customers can set up overtime rules to accommodate these state- or company-specific overtime requirements.

It is your responsibility to ensure that your state or local overtime laws are set and applied to your employees in the software. For more information, check out our article, Overtime Laws by State.

The rules for overtime are restricted to a single day of 24 hours, commencing from 12:00 a.m. and ending at 11:59 p.m.

To View Company Overtime Rules

To view all company Overtime Rules go to Settings > Time> Overtime Rules.

Patriot has already set up the FSLA overtime rule. This is not editable and is automatically used for all hourly or salary non-exempt employees.

To Set Up a New Overtime Rules

1. Go to Settings > Time > Overtime Rules 

2. Click “Add New Rule.” 

3. Title: Enter a unique title for this overtime rule, up to 50 characters long.

4. Create Overtime Formula: Enter the formula for when overtime hours will be calculated for hours exceeded for the date range (day or week).

Example:
Let’s say you want to create an overtime rule that allows your employees to receive time and a half (1.5) in overtime if they work over 12 hours in a given day. 

Your Overtime Rule will look like this:

Setting up a new overtime rule in Patriot's Time & Attendance software

5. Select the Hour Type, Overtime (1.5x), or Doubletime (2x) to use for your new overtime rule.
6. Assign Active Employees: Go to the Active employee list in the dropdown. Select the hourly or salary non-exempt employees who will use this overtime rule when the formula conditions are met. Salary-exempt employees will not appear on this list because they are not eligible for overtime. You’ll need to add the Overtime Rules for each new hourly or salary non-exempt employee within this settings page.
7. Click “Save.”

Once the overtime rule has been used in payroll, you will no longer be able to change the formula or delete the overtime rule. However, you can still add new employees to the overtime rule.

To Inactivate an Overtime Rule

  1. Go to Settings > Time > Overtime Rules
  2. Select the Overtime Rule you want to inactivate and click the “Edit” button.
  3. Uncheck the “Active” box.
  4. Click the “Update” button to save your changes. 

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