Exceptions Costs in Labor Calculations & Reports

For users in California, New York, Philadelphia, and the District of Columbia, 7shifts now allows exception costs (such as compliance fees) to be added directly to labor costs and reports.

⚠️ Access to this feature may require an upgrade from your current plan.

⚠️The 'Can manage exceptions' permission applies to specific labor exceptions: Reporting Pay, Missed Rest Breaks, and Missed Meal Breaks.

Overtime, Split Shift/Spread of Hours, Clopening, and Last-Minute Schedule Changes, are not dismissible and appear as flags on punch details.

Enable compliance fees


  1. Log into the web app as an Admin.
  2. In the left navigation bar, select Settings > Company Settings > Labor & Compliance.
  3. Check Compliance fees.
    Compliance fees checkbox in Labor and Compliance settings
  4. Click Save.

Automatically dismiss waived meal breaks (California)


Accounts in California can have 7shifts automatically dismiss missed meal breaks when a waiver applies, which also removes the cost from labor calculations. This requires attestation to be enabled, a meal break waiver on the employee's profile, and an affirmative response to the Meal break attestation question at punch-out. For attestation setup, see Attestation Management. For the shift length conditions, see California Labor Compliance - More Tools.

Turn on automatic dismissal

From Company Settings
  1. In the left navigation bar, select Settings > Company Settings > Labor & Compliance.
  2. Under Advanced Labor, enable Meal breaks.
  3. Check Automatically dismiss waived meal breaks.
    Automatically dismiss waived meal breaks option under Advanced Labor in Labor and Compliance settings
  4. Click Save.
From an employee profile
  1. In the left navigation bar, select Team > Employees.
  2. Search for the employee and click their name to open their profile.
  3. Select Employment from the left-hand menu.
  4. Check the waiver(s) that apply to the employee.
    Meal break waiver checkboxes on the Employment tab of an employee profile
  5. Click Save.

Revert auto-dismissed meal breaks

From the Time Clocking page
  1. In the left navigation bar, click Time Clocking and select a pay period. Once the pay period expands, click the pencil icon Pencil icon next to the punch you want to edit.
  2. In the Punch Overview, click Auto-dismissed meal break.
    Auto-dismissed meal break in the Punch Overview
  3. Click Revert auto-dismissed meal break and confirm the warning.
    Warning message for reverting an auto-dismissed meal break
  4. Click Save.

Where exception costs appear


Once compliance fees are enabled, exception costs populate in the reports below.

Worked Hours & Wages report

The Worked Hours & Wages report, found under Reports > Worked Hours & Wages, shows an added column for exception costs. Click the image to expand it.

Worked Hours and Wages report with an added exception costs column

Labor Exceptions report

The Labor Exceptions Report, found under Reports > Labor Exceptions, shows shift lengths for exceptions related to shift duration. Exceptions not based on shift length display N/A hours.

Sales vs. Labor dashboard and Actuals report

Actual Labor appears on the Sales vs. Labor dashboard and the Actuals report. Labor exception costs aren't surfaced to employees.

⚠️ For 7punches users: Removing an Exception from the punch record will also remove it from other labor calculations. 

❗️For users with a POS labor integration, Exception costs from punches cannot be removed. However, if your POS supports it, you can enable Third Party Punches to dismiss exceptions, which will recalculate the costs.


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