What is an Overtime Policy?

An Overtime Policy is a set of rules that dictate which hours on your employee time cards will be counted as Overtime Hours, instead of Regular Hours. Typically, Overtime Hours are paid out at a different rate than Regular Hours are, but their configurations can differ vastly, depending on factors such as your company's pay structure, or even some state laws.

How can I set up or change an Overtime Policy?

Overtime Policies are fully customizable at any time. Here's how to get to them in our system:

  • Log onto your Fingercheck account and go to the “Setup” tab. From the drop-down menu on the top left of the page, select “Policies”.
  • Within the "Policies" menu, click "Overtime Policies".

From here, you can either Add, Edit, or Delete existing policies.

Let's go into what kind of information is needed when creating a policy.

  • Code & Description: You'll see these fields a lot in Fingercheck, they are how everything is "named". You'll see these come up a lot on reports.
  • Not Allowed: Checking this box essentially disables the policy, making it so even if it is triggered, it would not do anything.
  • Before/After Scheduled Start Time: These boxes are meant to be used with Daily-type Overtime Policies that allow employees to work hours outside of the ones assigned to them.
  • Starting Day of the Week: This one's very important- meant to be used for Weekly and Bi-Weekly-type Overtime Policies, it tells the system what is considered the beginning of the work week, so it knows when to 'reset' the counter for an employee's hours worked.
  • Include Paid Break/Meal/Holiday/Absence/Overtime Hours: These checkboxes tell the policy to count hours that would not be considered otherwise, such as time absent due to sick leave or a holiday, or time spent out on lunch.

Then there's Overtime Rules. Overtime Rules are what primarily tells the policy how to look at hours and calculate them to determine when Overtime should happen.

  • Over Time Type: This is what tells the system the time period to calculate for. Typically, this will be something like Daily or Weekly, though there are other options to explore as well.
  • Hours Above: This tells the system the beginning of the "range" in which hours worked should be marked as Overtime.
  • Hours To: This tells the system the end of the "range" in which hours worked should be marked as Overtime.
  • Division Earning: This tells the system what Earning Code to use for Overtime Hours. The Earning Code will dictate what rate those hours should be paid as.
  • Is Comp Time: This can be used to disqualify hours that would fall within the range from Overtime. Think of it sort of like flipping the policy over- instead of counting those hours towards it, the system would ignore them.
  • Comp Time Accrual: This is used in combination with the Is Comp Time checkbox to make it so the hours count towards an Accrual Policy, instead of Overtime.
  • Start/End Time: This can be used when labeling a certain range of time as eligible for one kind of Overtime rule, different from any other range of time.
  • Sequence: This is used to dictate the order in which rules are applied, which can be useful in situations where multiple rules can apply at the same time.

Frequently Asked Questions

Why is the start day of my week so important?

Setting a start day for the week is so the system knows where to start calculating when determining how many hours have been worked within a week, which is important when figuring out Overtime, since most Overtime Policies trigger on "When an employee has worked X amount of hours, everything after is Overtime".

For example, if you have a weekly-based Overtime Policy, and Jan 1 is a Sunday, that means your work week is Jan 1st thru Jan 7th. If you set the beginning of the week to Sunday, the policy will know to take all hours worked within that week into calculation, but nothing after or before.

Now, take the same example but set the start of the week to Wednesday. Now the system will total up all hours between the days of Jan 4th thru Jan 11th.

If you have any further questions on this subject, you can reach out to our team at 1-800-610-9501, or, use our in-app messaging feature by logging into our secure site and initiating a conversation.

To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Fingercheck.com. Interested in our services? Sign up for a 30-day free trial and get started with FingerCheck today.

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