Overtime rules in Raken determine how employee hours are automatically categorized into Regular Time, Overtime, and Double Time based on your company's policy. Once configured inside your Time Policy, Raken calculates overtime automatically — no manual adjustments needed at the end of the pay period.
Quick Answer
To create an overtime rule in Raken:
Click Company in the left navigation, then click Time > Policies.
Click Edit policy on the policy you want to update.
Click Overtime rules in the policy left navigation.
Select a rule type — Daily, Weekly, or Daily & Weekly.
Set your pay type thresholds and click Save.
Overtime rules apply to all future time cards for employees assigned to that policy. Existing time cards are not retroactively updated.
Step-by-Step Instructions
This feature is available on the Raken web app only.
Step 1: Navigate to Overtime Rules
Log into the Raken web app. Click Company in the left navigation, then click Time > Policies. Click Edit policy on the policy you want to configure, then click Overtime rules in the policy left navigation.
Step 2: Confirm Pay Types Are Active
Before building the rule, confirm the pay types you need are active. Click Pay types in the policy left navigation to review — RT, OT, and DT should be enabled. At least two pay types must be active for overtime rules to function. Return to Overtime rules when done.
Step 3: Select the Rule Type
Choose the overtime rule type that matches your company's policy:
Daily — overtime triggers after a set number of hours in a single day
Weekly — overtime triggers after a set number of hours in a single week
Daily & Weekly — both daily and weekly thresholds apply
Step 4: Set Pay Type Thresholds
Set the initial pay type for standard hours (typically Regular Time), then add thresholds for when each additional pay type kicks in — for example, Overtime after 8 hours per day, Double Time after 12 hours per day. Click + Add pay type to add additional thresholds within the same rule.
For pre-built templates based on common labor policies — including California's consecutive-day overtime requirements — see Overtime Rule Templates.
Step 5: Save
Click the orange Save button. The updated rule applies to all future time cards for employees assigned to this policy.
Troubleshooting & FAQ
Do overtime rule changes apply to existing time cards?
No. Changes apply only to time cards created after the change is saved. Existing time cards follow the rules that were active when they were created.
Can I use a pre-built template instead of building from scratch?
Yes. Raken offers pre-built templates including Standard 40, Standard 8/40, Standard 4/10, California, California 4/10, and Exempt. See Overtime Rule Templates for details.
Can I have different overtime rules for different employee groups?
Yes. Create separate Time Policies for different groups and configure the overtime rules for each independently. Assign each employee to the relevant policy.
What happens if an employee works under multiple policies in one pay period?
A warning banner appears in the Time tab when this occurs. Review those employees' time cards manually to confirm overtime is allocated correctly.
Does Raken automatically recalculate overtime when I add a new time card?
Yes. Overtime is recalculated server-side every time a time card is created or edited — entries don't need to be added in chronological order for overtime to be calculated correctly.
Technical Specifications
Compatibility: Web app only
Offline Capability: No — requires an active connection
Plan Required: All plans
Add-on Required: None
Role Required: Account Administrator only
Considerations
Only Account Administrators can create and edit overtime rules.
Overtime rule changes apply to future time cards only.
At least two pay types must be active before overtime rules can be configured.
Overtime is recalculated server-side automatically — no need to enter time in chronological order.
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More Questions?
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