Labor / Overtime

Enabling the Overtime 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 Alerts

Actual Labor

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.

⚠️ If the 'Auto-break' setting is enabled, this will automatically deduct break time and labor costs from employees' scheduled shifts on the Schedules page. This for forecasting purposes only and will not affect their actual time punch or schedule when they should take their breaks.

In order to have time deducted from the time punch, the Employee must still clock out for the break.

You can customize the following rules to track your overtime labor:

1. 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.

2. 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.

3. 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.


Scheduled Labor

You will receive warnings when scheduling employees into both daily and weekly overtime.

Pop up warnings

Schedule indicator

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

Weekly overtime will be indicated by a red cell around the Employee's name.

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 Alerts


Overtime (OT) Alerts send a push notification to all managers of an employee when an employee enters daily overtime, weekly overtime, or is at risk of hitting weekly overtime with their scheduled shifts and actual labor already worked.

⚠️  To use this feature, you will need:

1. To be on The Works plan or above. 

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.
⚠️ Real-time alerts for this feature are not supported with Heartland Restaurant, Lightspeed, and Upserve POS at this time.

For more information, please contact support@7shifts.com.
To enable Overtime Alerts:

1. Once you have the above prerequisites, go to Company Settings > Labor & Compliance. Ensure 'Overtime' is already enabled.

2. Scroll down and check the box for 'Overtime Alerts.'

We also have a buffer for OT alerts if you want to know your employee is approaching weekly overtime before they are at risk of it. This buffer starts sending you 'at risk' notifications when an employee approaches the weekly overtime hour maximum to give you a better chance of preventing overtime cost.

Set your 'Alert Buffer' by clicking on the drop-down menu and selecting your preference for how soon you want to receive OT notifications.

3. Remember to click 'Save' on the bottom of your screen.

4. Be sure to update your notification settings under My Account > Notifications. 

Once you have your Overtime Alerts values set and enable Overtime you will be set. Your managers will receive a push notification on their phone when an employee enters into Overtime or is at risk.

⚠️ At risk warnings will come up anytime an employee punches in to ensure their current working manager is aware of the potential inflated cost.
A weekly at-risk Overtime alert is calculated by:   

'Actual hours' worked + 'Scheduled Hours' for the remainder of the week > Weekly Overtime Hours setting.

⚠️ Please note an Employee's Overtime hours will be calculated by their scheduled and worked hours across all Locations within the account.
Want to learn more about labor compliance? Click here for information regarding Custom Breaks.

Actual Labor


Overtime will impact your actual labor.

If you are a  7punches user, you'll see the overtime calculated on our 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.

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