Labor & Overtime

Enabling the Overtime (OT) settings will allow Admins and Managers to properly track and calculate overtime within the account.

Company-level settings apply to all locations by default. Use location-level settings when individual locations need different rules (for example, Overtime).

Overtime Settings Overview

If you have selected a Jurisdiction in your Labor and Compliance settings, your Overtime rules may have auto-populated. You can adjust these settings to fit your company's needs. Ensure you review each section and enable the settings applicable to your region.

• Daily Overtime and Daily Double Overtime
• Weekly Overtime
• Consecutive Days Overtime

Daily Overtime and Daily Double Overtime:

We provide two customizable daily overtime rules to handle overtime within a single day.

Based on the rules set in the image above, Daily Overtime would be calculated at 1.5 times the employee's regular wage for all hours scheduled and worked beyond 8 hours in a day, up to (but not including) 12 hours. If an employee is scheduled or works beyond 12 hours in a day, all additional hours are calculated as Daily Double Overtime at 2 times their regular wage.

Weekly Overtime:

The Weekly Overtime option allows you to start calculating an employee's hours as overtime once they reach a set amount of regular hours scheduled or worked in the week. Keep in mind that this limit will not include any accrued daily overtime hours for the week.

Based on the rules set in the image above, Weekly Overtime will be calculated at 1.5 times the employee's wage for any hours scheduled or worked beyond 40 regular hours within a set week.

Consecutive Days:

The Consecutive Work Day Overtime option allows you to calculate overtime when an employee works a set amount of days consecutively. This also applies only within the specific workweek, set by your scheduled 'Start Week On' day, as mentioned above.

Enabling Overtime

Company-level Overtime

1. Log in to the 7shifts web app as an Admin.
2. Go to Settings > (or, click on your profile photo) > Company Settings.
3. Select the Labor & Compliance tab.
4. To set your desired Overtime rules (such as Daily, Weekly, or Consecutive Days), simply check the box next to the rule and configure the rate and hours.
5. Scroll down to Save changes.

Location-level Overtime 

If your account has multiple locations, you now have the option to set unique Overtime rules for individual locations.

1. Log in to the 7shifts web app as an Admin.
2. Go to Settings > Locations/Departments/Roles.
3. Select the desired Location.
4. Open the Labor & Compliance tab.
5. Toggle on "Use location-specific settings" (if not already enabled). 
6. To set your desired Overtime rules (such as Daily, Weekly, or Consecutive Days), simply check the box next to the rule and configure the rate and hours.
7. Scroll down to Save changes.

Once saved, this location will follow its own Overtime rules. Other locations in the account will continue to follow company-wide rules until the location-level settings are enabled for them.

Multi-location Overtime Calculation

By default, for employees working across multiple locations, the system combines all hours worked in a day or week to determine if an overtime threshold has been met. Once calculated, the resulting overtime hours are then applied to the location where the employee went into overtime (typically the last location worked). 

Use the multi-location overtime calculation to adjust how source hours trigger overtime: 

• Option 1 (Default): Combine hours across all locations. This is the current system behavior. The system combines all hours worked across all locations in a day or week to determine if an employee has hit an OT threshold.

• Option 2: Keep hours separated by location. The system evaluates hours for overtime independently at each location. Hours are not combined when checking the employee's OT threshold.

Auto-Breaks

Lower down, you may see an 'Auto-Break' setting. If this setting is enabled, this will automatically deduct break time and labor costs, but only from employees' scheduled shifts on the Schedules page. This is for forecasting purposes only and will not schedule when they should take their breaks, nor will it affect their actual time punches.

In order to have time deducted from the time punch, Employees must still clock out for their breaks.

Scheduled Labor

You will receive warnings when scheduling employees into both daily overtime and overtime for the week. Overtime warnings appear in two places:

• In the Shift Creation Modal: When creating or editing a shift, a warning will appear if the new shift will push the employee into overtime based on their scheduled hours and any worked hours (including unscheduled punches) for the current week. This is intended to help managers prevent OT overages in real time, but it may result in unexpected warnings if there are extra hours already logged outside the schedule.
  
  • On the Schedule Page: Daily overtime is indicated by a red cell on the day of the shift. Weekly overtime is indicated by a red cell around the employee’s name, based on both their scheduled hours and any existing punches.

Pop up warnings:

Schedule indicator:

Daily overtime will be indicated by a red cell on the day of that specific shift.

Their total weekly overtime will be indicated by a red cell around the Employee's name.

If looking at the Day View of the Schedule, the daily warnings will apply:

In both cases, the overtime wage will increase both the individual employee wage, as well as the total wage impact on the Weekly Budget Tool.

Overtime Warnings

Admins and Managers will be able to see warnings on the 7shifts mobile app when employees are about to go into, or are in, overtime. Having these warnings readily available can help you meet your labor targets and easily make labor decisions on the fly.

Overtime Alerts

You can enable Overtime Alerts to ensure that Admins and Managers receive real-time mobile push alerts when employees enter daily overtime, weekly overtime, or are at risk of weekly overtime.

Worked Hours and Actual Labor

Overtime will impact your actual labor.

If you're a 7punches user, you'll see the Overtime and Double Overtime calculated in the Worked Hours & Wages Report:

If you have an Actual Labor integration with one of our POS partners, any labor pulled into 7shifts will account for overtime.

Regular Rate of Pay

When turned on, the regular rate of pay feature considers the number of hours worked at different pay rates while calculating overtime.  

It is calculated by dividing the total pay for employment in any workweek by the total number of hours worked across different roles. 

Holiday Hours & Overtime 

Hours that are worked during Holidays will be included in the Overtime calculation. This ensures that all hours worked are accounted for, and your team is paid accordingly.

For example, you have set your Weekly Overtime hours to be anything over 40 hours. 

If an Employee works 48 hours in a workweek - with which 8 of those hours were worked on a holiday - we will calculate those 8 hours with the overtime rate and the set holiday pay.

To have this calculation ignored, you can simply disable any Holidays within your Location's settings:

State Minimum Wage for Overtime

Once enabled, and an employee's wage is below the state minimum (for example, they're a tipped employee), we will use the state minimum wage to calculate their overtime pay.