Counted from punches
Overtime is worked out from the clock-ins and clock-outs people make on their phone or the tablet at the door, not from hours typed in on Friday.
Book a demo
Workzenly is overtime tracking software built on real time clock punches. It totals each person’s workweek as it happens, splits it into regular and overtime hours, and flags anyone heading past 40 while there is still time to change the schedule. Approved overtime goes into payroll at the right rate.
Overtime
Northfield Coffee · Week of Nov 8 (Sun–Sat) · Wed, Nov 11
| Employee | OT hours | OT rate | Projected | Status |
|---|---|---|---|---|
| ECEmily Carter | 6.0 | $28.50 | $171.00 | Thu shift |
| JLJordan Lee | 2.5 | $27.375 | $68.44 | Fri shift |
| SRSam Rivera | 0.5 | $27.00 | $13.50 | Sat shift |
9.0 overtime hours on this week’s schedule
Scale to 48 h · line marks 40 · Dana is free Saturday and under 40Built for teams that work in shifts
Overtime usually shows up on Monday morning, when the week is over and the only thing left to do is pay it.
Paper time cards tell you about overtime after it happened. Overtime tracking software counts every punch against the 40-hour line as it comes in, so a manager can decide on Wednesday whether Thursday’s extra shift is worth paying time and a half.
What changes in the first pay period
Overtime is worked out from the clock-ins and clock-outs people make on their phone or the tablet at the door, not from hours typed in on Friday.
People approaching 40 hours show up on the dashboard during the week, with the shifts still on their schedule added in, so you see Thursday’s overtime on Wednesday.
Every weekly total is split into regular hours and overtime hours. PTO stays in its own column, so it never pushes someone over 40 by accident.
Approved overtime flows into payroll as overtime at 1.5 times the regular rate. Nobody multiplies hours by hand or retypes them into the pay run.
How it works
Counting, warning, approving and paying overtime happen in one record.
Workzenly adds up each workweek from the punches, takes off unpaid meal breaks and splits the total at 40, with the overtime rate shown next to the hours.
40.0 regular · 6.0 overtime
Worked out from 5 days of punches · 1 corrected clock-outWorkzenly adds what people have worked to what is still on the schedule. Anyone approaching 40 hours is flagged for the manager.
Wed, Nov 11 · Manager
Marcus
Overtime this week
9.0 h
Projected · $252.94 at 1.5×
Emily Carter
36.0 now · 46.0 with ThuJordan Lee
32.5 now · 42.5 with FriSam Rivera
32.0 now · 40.5 with Sat3 shifts would add overtime
Managers see who worked overtime, on which day and what it costs, then approve the team’s week in one tap.
| Employee | Regular | Overtime | OT cost | Status |
|---|---|---|---|---|
| Emily Carter | 40.0 | 6.0 | $171.00 | Waiting |
| Jordan Lee | 40.0 | 2.5 | $68.44 | Approved |
| Sam Rivera | 32.0 | – | – | Approved |
| Maya Torres | 34.4 | – | – | Approved |
1 timesheet with overtime waiting
Emily Carter · Thu, Nov 12 took her to 46.0 hApproved overtime goes into the pay run on its own line at the overtime rate, and onto the pay stub in the app on payday.
| Line | Week | Hours | Rate | Amount |
|---|---|---|---|---|
| Emily Carter · Overtime | Nov 8–14 | 6.0 | $28.50 | $171.00 |
| Jordan Lee · Overtime | Nov 8–14 | 2.5 | $27.375 | $68.44 |
| Overtime this run | 8.5 | $239.44 |
Overtime approved by Marcus, Mon, Nov 16
Jordan: 2.5 × $27.375 = $68.4375, paid as $68.44 · stubs in the app Fri, Nov 20The regular rate
Federal law prices overtime at 1.5 times the regular rate of pay, which includes shift differentials and promised bonuses. Workzenly works the premium into the week’s regular rate before it prices the overtime, so the extra half-time is right.
Same as 40 h × $18.50 + 4 h × $27.75
Overtime at base rate only would underpay by $1.00Overtime management software
Overtime is not always a mistake. What matters is deciding before it happens. When Workzenly flags a shift that would push someone past 40, the manager sees who else is free and under 40, and can offer the shift from the schedule in a couple of taps.
Sam Rivera (scheduled)
32.0 h this week → 40.5 h · 0.5 OT at $27.00Dana Brooks
Free · 26.0 h → 34.5 hMaya Torres
Free · 34.4 h → 42.9 hOffer Saturday to Dana?
Sam stays at 32.0 hours, no overtimeRecords for the long run
When an employee or an auditor asks how overtime was counted, you need more than a total. Workzenly keeps every punch, every correction with who made it and why, and every approval in each person’s record.
Clocked in 7:00 AM
Tablet at the door · 36.0 h before this shiftNo clock-out recorded
Flagged at 6:00 PMClock-out set to 5:30 PM
Requested by Emily · accepted by Marcus · “Left after prep close”Week approved: 40.0 regular, 6.0 overtime
By Marcus · Mon, Nov 16, 9:12 AMWho uses it
Guessing how many hours they have left this week
Clock in and out, see this week’s hours and fix a missed punch with a request
Overtime on the pay stub that matches what they worked
Adding up time cards on Thursday night
See who is near 40, move or offer a shift and approve the week in one tap
Overtime they chose, not overtime that surprised them
Working out overtime rates in a spreadsheet
Run payroll from approved regular, overtime and PTO hours
Fewer corrections and back-pay fixes after payday
Finding out about overtime from the bank statement
Watch projected overtime pay each week and keep records ready if asked
Labor cost that stays close to the plan
Access you control
Each person sees their own hours, overtime, PTO and pay stubs, never a coworker’s.
Managers see their team’s shifts, hours and time off, and approve their team’s timesheets and overtime.
Pay rates and pay stubs are visible only to the people you give payroll access to.
Connected
Who is in, late or out, with breaks and overtime worked out.
Time and attendance →Clock in and out from a phone, with this week’s hours on screen.
Time clock →Build the week and see who would cross 40.
Scheduling →Timesheets built from punches and approved a week at a time.
Timesheets →Time off kept apart from hours worked.
PTO →Approved hours, overtime and PTO become pay stubs in the app.
Payroll →We set up a demo workspace with your company name before the call.
Most small employers add up time cards after the week ends and multiply anything over 40 by one and a half. That works until a bonus, a shift differential or a state daily rule changes the math. This guide covers the US rules overtime tracking software has to follow, where the rate most often goes wrong and what to look for in a tool.
Overtime tracking software does four jobs. It counts hours for each workweek from time clock punches, splits the week into regular and overtime hours, warns managers when someone is approaching the overtime line, and hands approved overtime to payroll at the correct rate.
The first and last jobs are where most errors come from: hours remembered on Friday, or overtime retyped into payroll at the base rate. In Workzenly the punch, the timesheet and the pay run are one record, so the overtime a manager approves is the overtime on the pay stub.
The Fair Labor Standards Act (FLSA) sets the federal rule. According to the U.S. Department of Labor, non-exempt employees must be paid at least time and a half their regular rate of pay for hours worked over 40 in a workweek. A few details decide most overtime questions:
For a worked example: Emily earns $19.00 an hour and works 46 hours. That is 40 × $19.00 = $760.00, plus 6 × $28.50 = $171.00, for $931.00. Our overtime calculator runs the same math for any rate and number of hours, and the guide on how to calculate overtime walks through five worked examples.
Overtime is 1.5 times the regular rate, not the base wage. The FLSA says the regular rate includes all pay for employment except payments the law itself leaves out: add up the week’s straight-time pay and divide by total hours worked. Overtime calculation software that only multiplies hours by the base wage gets this wrong.
| Include in the regular rate | Leave out of the regular rate |
|---|---|
| Hourly wages and salary | Pay for time not worked: PTO, vacation, holidays, sick leave |
| Shift differentials for nights, weekends or hazardous work | Discretionary bonuses the employer alone decides on, near the end of the period |
| Nondiscretionary bonuses: attendance, production, safety, quality, retention | Gifts on special occasions that are not tied to hours, production or efficiency |
| Commissions, whether paid weekly or later | Reimbursed business expenses such as mileage |
| On-call pay | Bona fide profit-sharing, benefit plan contributions and qualifying stock options |
| Piece-rate earnings | Premiums already paid at 1.5× or more for daily, weekend or holiday work |
In the example above, Tyler earns $18.00 an hour plus $2.00 for 11 closing hours, and works 44 hours. Straight-time pay is $792.00 + $22.00 = $814.00, so his regular rate is $814.00 ÷ 44 = $18.50 and the half-time premium on 4 overtime hours is 4 × $9.25 = $37.00. He is owed $851.00, a dollar more than if overtime were priced at his base wage. Our guide to shift differential pay covers flat and percentage differentials in more detail.
Federal law sets the floor. Where state law is stricter, employers must follow whichever rule pays the employee more. A few states count overtime by the day as well as the week:
If you have staff in one of these states, run a real week with a long day through any tool you consider. Workzenly shows daily and weekly totals side by side on every timesheet. Tell us your state on the demo call and we will walk through how your overtime rules are set up.
This guide is general information, not legal advice. Overtime rules change and have exceptions, so check the U.S. Department of Labor, your state labor department or an employment lawyer for your situation.
Overtime rules apply to non-exempt employees. Every employee is non-exempt unless their job meets an exemption. For the federal executive, administrative and professional exemptions, that generally means being paid a fixed salary of at least $684 a week ($35,568 a year) and doing work that meets the duties test for the exemption. Job titles do not decide it, and paying someone a salary does not by itself make them exempt.
Several states set higher salary thresholds, including California, New York, Washington, Colorado, Alaska and Maine. A salaried shift lead under the threshold, or whose main job is serving customers, is owed overtime like anyone else, so keep recording hours for salaried non-exempt staff. Our guide to exempt vs non-exempt employees lists the duties tests and state thresholds.
The cheapest overtime is the overtime you chose. A few habits keep it that way:
Run one real week through every tool you are considering, with someone over 40, a differential or bonus, a missed clock-out and some PTO. Then ask:
Overtime tracking works best inside a broader time and attendance system. Comparing vendors? Our list of the best time and attendance software covers the main options neutrally, and the timesheet templates are a free starting point if you are still on paper. If you want to see your own week counted in Workzenly, book a demo and we will set up a workspace with your company name before the call.
FAQ
Something else on your mind? Write to [email protected].
Overtime tracking software totals each employee’s hours by workweek from their time clock punches, splits the week into regular and overtime hours, and warns managers when someone is getting close to 40 hours. Workzenly also sends approved overtime into payroll at 1.5 times the regular rate, so nobody adds it up by hand.
Under the Fair Labor Standards Act, non-exempt employees are owed at least 1.5 times their regular rate of pay for every hour over 40 in a workweek. At $19.00 an hour, 46 hours is 40 regular hours ($760.00) plus 6 overtime hours at $28.50 ($171.00), for $931.00.
No. The Department of Labor says each workweek stands alone and averaging hours over two or more weeks is not permitted. An employee who works 50 hours one week and 30 the next is owed 10 hours of overtime, even though the two-week total is 80.
Not under federal law. Paid time off, holidays and sick days are not hours worked, so they do not count toward the 40 unless your own policy says they do. Workzenly keeps PTO hours separate from worked hours on the timesheet and in payroll.
Some do. Being paid a salary does not make someone exempt. To be exempt under the federal executive, administrative or professional exemptions, an employee generally must earn at least $684 a week on a salary basis and do work that meets a duties test. Salaried non-exempt employees are still owed overtime after 40 hours.
Workzenly totals each person’s week as punches come in and adds the shifts still on the schedule. Anyone approaching 40 hours shows up on the dashboard during the week, so a manager can move or swap a shift before the overtime happens, or approve it knowing what it will cost.