In this article, we use Deputy's Pay Rate Builder to step through creating a pay rule that will pay an additional amount of money when a team member works overtime. 

There could be many variations of overtime payments in your workplace so we will go through several examples. You can use the examples below to tailor the pay rules to your requirements.

Note:  for all of the below examples:

• we will be configuring the pay rules from scratch
• our definition of the day is assumed to be starting at midnight and all time worked belongs to the day the team member clocks in. This allows, for example, if a user works from 8pm - 8am to still get overtime even though they have worked over separate calendar days. 

The below configuration is the recommended default for the pay rate details.

Examples of overtime scenarios 

1. Team members get paid 1.5x their base rate for working more than 10 hours in a day.

2. Team members get paid 1.5x their base rate for working more than 10 hours in a day, and 2x their base rate for working 12 hours in a day.

3. Team members get paid 2x their base rate for working more than 10 hours in a day on a weekend.

4. Team members get paid 1.25x their base rate for time worked on unscheduled shifts.

5. Team members get paid 1.25x their base rate for time worked before and after their scheduled shifts.

6. Team members get paid $20 extra if the length of their working day exceeds 10 hours.

Example 1: Team members get paid 1.5x their base rate for working more than 10 hours in a day.

1. Begin by creating a new pay rate or editing an existing one.

2. Click on Pay Rules and then Add to add a new pay rule.

3. Select Daily Overtime from the drop-down menu. The Daily Overtime pay rule calculation type allows you to configure an additional payment when an employee works more than a defined number of hours in a day.

4. Configure the following:

• Give the Pay Rule a distinctive name (Eg. Daily Overtime)
• Configure when the overtime triggers by setting the Rule Threshold. In this example, we want it to be 10 hours.
• Keep Pay After Reset set to 'Per Day'.
• Configure the pay rate by selecting Multiple of base rate. In this example, we want to set the amount to be 1.5x the base rate.
• Configure the export code for your payroll software. In this example, we have used Daily Overtime.

Don't forget to click Save when you are done.

6. Go to the Rule Priority tab in the pay rate and click Edit. This allows us to click and drag the pay rules to configure the priority of the pay rules. It is generally recommended that these are ordered in pay order, with period overtime higher than daily overtime.

Example 2: Team members get paid 1.5x their base rate for working more than 10 hours in a day, and 2x their base rate for working 12 hours in a day.

1. Begin by creating a new pay rate or editing an existing one.

2. Click on Pay Rules and then Add to add a new pay rule.

3. Select Daily Overtime from the drop-down menu. The Daily Overtime pay rule calculation type allows you to configure an additional payment when an employee works more than a defined number of hours in a day. In this example, we will be making two of these rules - one to trigger for 10 hours, and one for 12 hours. Let's make the 10-hour rule first.

4. Configure the following:

• Give the Pay Rule a distinctive name (Eg. Daily Overtime)
• Configure when the overtime triggers by setting the Rule Threshold. In this example, we want it to be 10 hours.
• Keep Pay After Reset set to 'Per Day'.
• Configure the pay rate by selecting Multiple of base rate. In this example, we want to set the amount to be 1.5x the base rate.
• Configure the export code for your payroll software. In this example, we have used Daily Overtime.

Click Save when you are done.

5. Now make a second pay rule by adding another Daily Overtime pay rule. You will now have two pay rules with the Daily Overtime calculation type.

6. Configure the second pay rule similarly:

• Give the Pay Rule a distinctive name (Eg. Daily Overtime after 12 hours)
• Configure when the overtime triggers by setting the Rule Threshold. In this example, we want it to be 12 hours.
• Keep Pay After Reset set to 'Per Day'.
• Configure the pay rate by selecting Multiple of base rate. In this example, we want to set the amount to be 2x the base rate.
• Configure the export code for your payroll software. In this example, we have used Daily Overtime over 12.

Click Save when you are done.

6. Go to the Rule Priorities tab in the pay rate and click Edit. This allows us to configure the priority of the pay rules. These are generally recommended to pay in the order of which is the highest rate for the team member, but the critical thing is to ensure that the 'After 12-hour overtime' rule is higher in priority than the '10-hour' rule.

Example 3: Team members get paid 2x their base rate for working more than 10 hours in a day on a weekend.

1. Begin by creating a new pay rate or editing an existing one.

2. Click on Pay Rules and then Add to add a new pay rule.

3. Select Daily Overtime from the drop-down menu. The Daily Overtime pay rule calculation type allows you to configure an additional payment when an employee works more than a defined number of hours in a day.

4. Configure the following:

• Give the pay rule a distinctive name (eg. Daily Overtime Weekend)
• Configure when the overtime triggers by setting the Rule Threshold. In this example, we want it to be 10 hours.
• Keep Pay After Reset set to 'Per Day'.
• Configure the pay rate by selecting multiple of base rate and entering 2x the base rate. 
• Configure the export code for your payroll software. In this example we've used Daily Overtime Weekend.
• Choose the days you want this overtime applicable for. In this case, choose just Saturday and Sunday.

Click on Save when you are done.

5. Go to the Rule Priority tab in the pay rate and click Edit. This allows us to configure the priority of the pay rules. These are generally recommended to pay in the order of which is the highest rate for the team member.

Example 4: Team members get paid 1.25x their base rate for time worked on unscheduled shifts.

1. Begin by creating a new pay rate or editing an existing one.

2. Click on Pay Rules and then Add to add a new pay rule.

3. Select Shift Loading from the drop-down menu. The Shift Loading pay rule calculation type will always apply to all hours, and allows you to configure parameters to modify this, like time of day.

4. Configure the following:

• Give the Pay Rule a distinctive name (Eg. Unscheduled)
• Keep Time Type as Default.
• Configure the pay rate by selecting Multiple of base rate and entering 1.25x base rate. 
• Configure the export code for your payroll software. In this example we used 'Unscheduled'.

5. Go to the Advanced Pay Settings on the bottom left-hand side of the page and scroll to Apply pay rule to scheduled or unscheduled shifts. Select Unscheduled Shifts Only. This means the shift will only pay this if it isn't associated to a scheduled shift on a day.

6. Click Save when you are done.

7. Go to the Rule Priorities tab in the pay rate and click Edit. This allows us to configure the priority of the pay rules. These are generally recommended to pay in the order of which is the highest rate for the team member.

Example 5: Team members get paid 1.25x their base rate for time worked before and after their scheduled shifts.

1. Begin by creating a new pay rate or editing an existing one.

2. Click on Pay Rules and then Add to add a new pay rule. We will need to add two pay rules - once for before the shift, and once for after the shift. 

3. Select Outside Scheduled Hours from the drop-down menu. The Outside Scheduled Hours pay rule calculation type only applies to time worked before or after the schedule.

4. For this first pay rule, begin by configuring the pay rule to apply in the time before the scheduled shift starts.

• Give the Pay Rule a distinctive name (Eg. Before Scheduled Shift)
• Select a Rule Threshold if required. This field allows you to set a grace period before this rule kicks in. For example, if you set 15 minutes is set there will be a grace period of 15 mins prior to the shift. If an employee clocks in 10 minutes early they won't get the extra loading for those 10 minutes. In this example, we will pay every minute before the scheduled start time with the bonus so we will leave the Rule Threshold at 0 hours and 0 mins.
• Select Before Scheduled Hours. This sets the rule to look at time worked before the scheduled start time.
• Configure the pay rate by selecting Multiple of base rate and setting 1.25 x base rate.
• Configure the export code for your payroll software. In this example, we've used 'Before scheduled hours'.

Don't forget to click Save once you are done.

5. Repeat steps 2, 3 and 4, and configure the second pay rule to apply in the time after the scheduled shift starts. Be sure to set the appropriate name and export code and select the setting After Scheduled Hours. Click Save on the second configured pay rule.

Now we have configured pay rules to trigger 1.25x base pay rates for any time worked before or after a schedule shift.

6. Go to the Rule Priorities tab in the pay rate and click Edit. This allows us to configure the priority of the pay rules. These are generally recommended to pay in the order of which is the highest rate for the team member. In the case of these pay rules which occur exclusively of each other, either pay rule can be set to be higher in the priority than the other without any issue.

Example 6: Team members get paid $20 extra if the length of their working day exceeds 10 hours.

1. Begin by creating a new pay rate or editing an existing one.

2. Click on Pay Rules and then Add to add a new pay rule.

3. Select Spread of Hours. The Spread of Hours pay rule calculation type allows you to configure an additional payment when an employee is at the worksite for more than a set amount of hours in a day. Note: this is start time to end time, ignoring breaks.

4. Configure the following:

• Give the Pay Rule a distinctive name (Eg. Spread of Hours)
• Set the Rule Threshold for the length of the working day you want to trigger the extra payment. In this example, we will set it to 10 hours.
• Configure the pay rate by selecting Flat rate and entering the 20. In this example, we want a payment of $20 per unit. By selecting unit, the $20 payment will apply once per shift. Note: if hour is selected, it will pay $20 per hour after the 10-hour mark is reached.
• Configure the export code for your payroll software. In this example we have used 'Spread of hours'.

Don't forget to click Save when you are done.

Example 7: Team members get paid 1.5x overtime if their shifts are in excess of 11 hours on one day of the week and in excess of 9 hours on any other day of the week

1. Begin by creating a new pay rate or editing an existing one.

2. Click on Pay Rules and then Add to add a new pay rule.

3. Select Daily Overtime on One Day of the Week. This allows you to configure a higher and a lower threshold. The first day in the week that the lower rule threshold is exceeded, the higher one will be used instead.
4. Configure the following:

• Give the Pay Rule a distinctive name (Eg. Daily Overtime)
• Set the Work Period Start Day to define what day of the week this rule will start from (for example, Monday). Choose a day in the past for better usage.
• Select the higher rule threshold - in this case, 11 hours
• Select the Lower Rule threshold - in this case, 9 hours
• Configure the pay rate by selecting Multiple of base rate and entering 1.50x base rate. 
• Configure the export code for your payroll software. In this example we have used 'Daily Overtime'

Don't forget to click Save when you are done.