How is overtime is calculated?

Overtime is calculated either weekly or daily based on defined values. After enabling it in Settings, it is calculated at 1.5x after a certain set of hours that is defined by the administrator.

How to enable the Overtime Feature?

Let’s go to the Time Cards Module and open the settings. Once in the settings, scroll down to the section “Overtime Configuration” and click on the green pencil icon to edit.

Click on the grey button “Off” to enable it and right away you will see there three more options that were hidden.

Overtime Rules – Weekly

This function allows us to set up a maximum number of hours that our employees can work before becoming overtime. For example, if my employees work tens (10 hours daily) from Monday to Thursday, that is a total of 40 hours per week. They have the “day off” on Friday. If I need them to work on a Friday, since they already worked 40 hours this week, the first hour on Friday becomes overtime.

Overtime applies at 1.5 times the rate of the employee. If my employee’s rate is $50.00 USD per hour, the first 40 hours will represent an actual cost to my project of $50.00 USD/hour. However the first hour on Friday, it will cost 1.5 x $50.00 = $75.00 USD.

Overtime Rules – Daily

The Daily function is very simple to understand. Using as reference the regular rate for our employee at $50.00 USD per hour, when our employees work daily 8 hours, they will cost us 8 hours x $50.00 USD = $400.00 USD. However, if they continue working, the 9th hour becomes overtime. This triggers the equation 1.5 times the regular rate.

Let’s say we set our Overtime Configuration as shown above, after 8 hours working the 9th hour is overtime. Our employee clocks out at the 9th hour, that means that he will cost our project 8 hours x $50.00 USD + 1.5 x 1 hour x $50.00 USD = $475.00 USD.

Overtime Rules – Mixed

The last option is the Mixed rule. This option allows us to keep track of the daily overtime (if it takes place, as described above) and also, in the event that we need to work more that 40 hours (think of it as in working on a Saturday or Sunday), it allows us to represent that cost to our project. They way they work number wise was previously shown in the previous rules for the Overtime Configuration.

How does Contractor Foreman track double time?

Currently, there is no feature that keeps track of it, however that does not mean that we cannot do it. The way to keep track of the double time is by assigning a cost code that the double rate. In order for this function to work, we need to go to Financial Settings and use the “Approved Estimate” function in the Job Labor Calculation Report setting as shown below.

To know more about this feature, please read this article “Prevailing Wage, how to use different Labor Rates for different Projects?“