Overtime is calculated from actually clocked time, not the planned schedule — a worker who stays late because a shift genuinely ran over is paid for it automatically, no manual entry needed.
How a rule works
An overtime rule says "hours beyond X within period Y get an extra multiplier," where the period is daily, weekly, or monthly, and the rule can optionally apply to only one position (leave it unset to apply to everyone).
You can stack several tiers in the same window — for example, over 8 hours in a day pays ×1.5, and over 12 hours pays ×2.0. The highest tier claims its hours first, so hours aren't double-counted within the same window.
Setting it up
Go to Company settings → Payroll → Overtime rules to add tiers. Split shifts are summed per day (or week/month, depending on the rule's window) before the threshold is applied — not calculated per individual shift.
Important: don't combine a daily rule with a weekly/monthly one
This is a known limitation, not a suggestion: a daily overtime rule and a weekly or monthly rule for the same company run as fully independent calculations. The same worked hour can satisfy both pools and get paid twice. Until this is fixed, pick one period granularity for overtime per company — don't enable a daily rule alongside a longer-period one.
What editing a rule does — and doesn't — change
Overtime rules apply going forward. Editing a worker's planned shift time after the fact does not recalculate overtime already paid on past, closed shifts — only future shifts are affected by a rule change.