Labor & Overtime

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

SKIP AHEAD TO:
Turn Key Labor Settings
Enable Overtime
Scheduled Labor
Overtime Warnings
Overtime Alerts
Actual Labor and Worked Hours
Regular Rate of Pay
⚠️ Please note that your Overtime settings will apply to all Locations within the account.

Also, an Employee's Overtime hours will be calculated by their scheduled or worked hours across all Locations within the account.


Turn Key Labor - Settings by Jurisdiction

You can now select your jurisdiction, and 7shifts will automatically set your labor settings to match the labor laws in your area. 

To use Turn Key Labor:

1. Head to Company Settings > Labor & Compliance.

2. Under the 'Jurisdiction' dropdown, choose your Location.

3. The appropriate labor compliance settings will automatically populate. You can choose to manually adjust the settings, and click 'Save' and the bottom of the page. 

4. To re-sync your settings to your jurisdiction defaults, including the Overtime rules, click the 'Re-sync labor & compliance settings' button.

⚠️ Labor settings will be updated in accordance with labor laws, if / when the law changes.

Click here to learn more about Advanced Labor Compliance.


To Enable your Labor and Overtime Settings Manually

1. Head to Company Settings > Labor & Compliance.

2. Scroll down and check the box next to the 'Overtime' heading to open the specific settings.

3. Next, you can customize your account's overtime rules to track your overtime labor. Ensure you review each section and enable the settings that are applicable to your region.

Daily Overtime and Daily Double Overtime:

There are 2 daily rules that can be customized to fit your overtime needs: 

Based on the rules set in the image above, overtime will be calculated at 1.5 times the employee's wage for any hours scheduled or worked beyond 8 hours in a day, but less than 10.

If an employee is scheduled or works beyond 10 hours, all additional hours will be calculated at 2 times their wage.

If you only need to use 1 daily overtime rule, then simply remove the 'hour' field from the other one of the rules to ensure that it is not applied.

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 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, 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.

The workweek follows the same week set as your schedule. So, if your schedule is set to start on Monday, these overtime hours will be based on a workweek of Monday - Sunday.

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 day as mentioned above.

Based on the rule set above, overtime will be calculated at 1.5 times the employee's wage for all hours scheduled beyond the 4th consecutive day. The 5th day and any further consecutive days will have all hours calculated as overtime until that employee receives a calendar day off.

4. Be sure to scroll down to the bottom of that page and click on 'Save' after updating any of these Company settings. 

⚠️ 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.

If you are using 7punches, click here to learn more about updating your break settings.

Scheduled Labor

You will receive warnings when scheduling employees into both daily overtime and overtime for the week.

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.

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⚠️ To access Overtime Warnings:

1. The account must be on The Works plan or higher.
2. Have a POS labor integration or 7punches enabled.
3. Have Overtime settings enabled in your account and have configured your daily and weekly Overtime rules. (See steps here.)
Click here to learn more about setting up Overtime Warnings.


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.

⚠️ To use this feature, you will need:

1. To be on The Works plan or higher. 

2. Have a POS labor integration or 7punches enabled.

3. Have Overtime enabled on your account and have configured what your daily and weekly Overtime values should be.
Click here for more information on setting up Overtime Alerts.


Actual Labor and Worked Hours


Overtime will impact your actual labor.

If you are a 7punches user, you'll see the overtime calculated in the Worked Hours & Wages Summary.

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

⚠️ Please note, an Employee's Overtime hours will be calculated by their worked hours across all Locations within the account.


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. 

To enable the 'Regular rate of pay' setting :

1. Go to Company Settings > Labor & Compliance > Overtime at different pay rates.

2. Click on the dropdown and select the option that applies.

3. Be sure to scroll down and click on 'Save' to finalize these changes.

 

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