Labor / Overtime

Enabling the Overtime settings will allow admins and managers to properly track and calculate overtime within the account.


  1. Enable Overtime
  2. Scheduled Labor
  3. Overtime Alerts
  4. Actual Labor
  5. Regular Rate of Pay

Enable Overtime:
  1. Head to Company Settings > Labor

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

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

Daily 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' option from 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 work week follows the same week set as your schedule. So, if you schedule is set to start on Monday, these overtime hours will be based on a work week of Monday - Sunday.

Consecutive Days

The consecutive days option allows you to calculate overtime when an employee works a set amount of days consecutively. This also applies only within the specific work week, 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 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.

NOTE: You will need to be on The Works or Gourmet plan to use this feature and have a labor integration or 7punches enabled. 

To update your plan, navigate to the Billing page by hovering over the profile picture in the top right > Company Settings > Billing. To learn how to integrate with your POS time clocking system please click here.

Enabling Overtime Alerts

Once you have the above prerequisites, go to Company Settings > Labor and enable Overtime Alerts. If you don’t already have Overtime enabled on your account you will need to enable 'Overtime' and set what your daily and weekly overtime values should be in 'Overtime Alert'.

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 your at risk notification when an employee approaches the weekly overtime hour maximum to give you a better chance of preventing overtime cost. To set your Alert Buffer, click on the drop down menu and select your value. Then click save on the bottom left corner of your screen

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 are at risk.

A weekly at-risk Overtime alert is calculated by:   'Actual hours' worked + 'Scheduled Hours' for the remainder of the week > Weekly Overtime Hours setting.

Note: At risk warnings will come up anytime an employee punches in to ensure their current working manager is aware of the potential inflated cost.

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


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 hour worked across different roles. 

Regular rate of pay can be found in Company Settings > Labor

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