Overtime Rules Setup and Compliance Controls

Modified on Mon, 14 Sep at 2:01 PM

Purpose

Overtime rules define when hours become overtime (1.5×) or double overtime (2×): the workweek boundary, weekly and daily thresholds, and the seventh-consecutive-day rule. UZIO applies the assigned rule automatically as time is tracked, and the resulting Regular, Overtime, and Double Overtime hours reach payroll when you sync the pay period. When an employee works several jobs at different rates in one week, overtime is paid at a blended (weighted average) rate.

When to use this: UZIO ships a default rule (Sunday week start, weekly overtime after 40 hours, no daily or 7th-day rule). Create your own rule when your state or policy requires daily overtime, double time, a 7th-day rule, or a different week start, or when different groups of employees need different thresholds.

Who can do this: users with permission to manage Time Tracking settings (typically the Employer Admin).

Steps: Create an overtime rule

  1. From the left navigation, open Time Tracking > Time Tracking Settings.
  2. Open the Overtime Rules tab and select Add Overtime Rule.

[Screenshot: Add Overtime Rule form]

  1. Configure:
FieldWhat it doesRules & validation
Rule NameUnique, recognizable name (e.g., "CA Daily OT + 7th Day")Required; max 50 characters ("Enter a valid name")
Workweek Start DayDefines the weekly window for weekly OT (Sunday → week runs Sun–Sat)Required. Locked once time entries exist under the rule — the weekly boundary can't move retroactively.
Workday Start TimeThe time each workday begins — the boundary for daily OT calculations (15-minute increments, in your 12/24-hour display format)Required ("Please enter the Workday Start Time"). Locked once time entries exist.
Weekly Overtime Start After HoursHours per workweek before 1.5× applies (40 → a 46-hour week pays 6 hours at 1.5×)Must be 40–168: "Weekly overtime should be at least 40 hours" / "There are only 168 hours in a week."
Daily Overtime Start After HoursHours per day before 1.5× applies (optional)Must be 8–12: "Daily overtime should be at least 8 hours" / "Daily overtime must start after the 12th hour of work."
Daily Double Overtime Start After HoursHours per day before 2× applies (optional)Currently fixed at 12 hours — the field requires exactly 12; cannot be entered without daily overtime configured, and must be greater than the Daily Overtime threshold.
7th Consecutive Day OvertimeDrop-down: "Yes, apply the overtime on the 7th Consecutive Day" / "No, do not apply..."Required selection.
Assign ToWho the rule applies to: All overtime-eligible employees or Specific overtime-eligible employees (opens a multi-select — type the first three letters of a first name, last name, or email)Defaults to unassigned; specific assignment requires at least one employee.
  1. Save, then confirm assignments took effect for the intended employees.

Note: If 7th Consecutive Day Overtime is set to Yes and a Daily Double Overtime threshold is also configured, the two interact: on the 7th consecutive workday, hours up to the daily limit count as overtime, and any time beyond that limit counts as double overtime.

Editing and deleting rules

  • Edits apply prospectively. Saved changes affect only time entries created or edited afterwards. Historical overtime calculations are never reprocessed. This protects past payroll.
  • Delete is guarded. A rule assigned to any employee cannot be deleted. Unassign it first.

Blended (weighted average) overtime

When an employee works two or more pay rates in the same workweek, overtime is paid at a blended rate, the weighted average of the non-overtime rates. The example below is illustrative:

Example: David works 50 hours — Driver at $10/hr (25 regular + 5 OT) and Cleaner at $20/hr (15 regular + 5 OT).

  1. Straight wages: (30 × $10) + (20 × $20) = $700
  2. Blended rate: $700 ÷ 50 = $14/hr; half-blended = $7/hr
  3. Each job's blended OT rate = its regular rate + $7 (Driver $17, Cleaner $27); blended DOT = rate + $14
  4. Total: (25 × 10) + (5 × 17) + (15 × 20) + (5 × 27) = $770

("Blended," "weighted," and "weighted average" overtime mean the same thing.)

Tip: For 4×10 and 5×8 schedules, create two overtime rules: daily overtime after 10 hours for the 4×10 group and after 8 hours for the 5×8 group. Assign each to the right employees; an employee can hold only one overtime rule at a time.

Warning: Thresholds are your compliance posture. Daily overtime, double overtime, and 7th-day rules vary by state, with California the strictest. Confirm your configuration against the wage-and-hour rules for each state where employees work, or with your counsel.

Common mistake: Editing a rule and expecting it to fix past pay periods. Updates are prospective by design. Correct historical errors through payroll adjustments, not rule edits.

What happens next

Assign the rule to employees here or from Employee Setup and Rule Assignment. Hours calculate under the rule as employees punch, appear as Regular, Overtime, and Double Overtime on the Employees Timesheet, and reach the pay run when you approve and sync the period.

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