Some organization may pay overtime on a daily basis, e.g., overtime for hours worked above 8 hours in a single day. Other organizations set up overtime on per-shift basis instead.
That means if a worker has an 8 hour shift assigned Monday, any hours worked above 8 hours that day will be overtime. But then that same worker may have a 10 hour shift on Tuesday, and so any hours worked above 10 hours on Tuesday will be overtime. Also, a second shift in the same day will reset the overtime from the first shift.
You can enable shift-based overtime under the Pay Class settings:
You'll want to choose "Overtime by Shift", rather than by day.
When calculating overtime per shift, there are two options:
- Sum all hours worked for shift, and apply overtime when the sum exceeds the scheduled duration of this shift. For example, if a shift is scheduled for 9 am - 5 pm, and the worker is present from 9:15 am - 6 pm, then overtime will be applied for the segment 5:15 pm - 6:00 pm, since the scheduled shift duration is 8 hours.
- Apply overtime for all work outside fixed times. Taken from the previous example, overtime will be applied for the the segment 5:00 pm - 6:00 pm, since the scheduled shift ended at 5:00 pm. Some regions call this option "undertime", since the workers merits overtime even when starting work late.
For more information of setting up a Pay Class, check out the following help article:
The shift itself is defined as part of the Shift Class. Here's more information on setting up shifts:
Note that shift-based overtime still requires that the shift allow lock-out periods outside the normal start-end time range.