Overtime rules in Raken determine how employee hours are automatically categorized into Regular Time, Overtime, and Double Time based on your company's policies. 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:
Log into the Raken web app.
Click Company in the left side menu, then click Time, then click Policies.
Click Edit policy on the policy you want to update.
Click Overtime rules in the policy left side menu.
Select a rule type — Daily, Weekly, or Daily & Weekly.
Set your pay type thresholds.
Click the orange Save button.
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
Step 1: Navigate to Overtime Rules
Log into the Raken web app. Click Company in the left side menu. Click Time, then click Policies. Click Edit policy on the policy you want to configure.
This feature is only available on the Raken web app.
Step 2: Open the Overtime Rules Section
Click Overtime rules in the policy left side menu.
Step 3: Configure Pay Types
Before setting your overtime rule, confirm that the pay types you need are active. Click Pay types in the policy left side menu to review and activate the pay types that should be included in the overtime rule — for example, Regular Time (RT), Overtime (OT), and Double Time (DT). Return to Overtime rules when done.
At least two pay types must be active for overtime rules to function correctly.
Step 4: Select the Rule Type
Choose the overtime rule type that matches your company's policy:
Daily — overtime is triggered after a set number of hours worked in a single day
Weekly — overtime is triggered after a set number of hours worked in a single week
Daily & Weekly — both daily and weekly thresholds apply
Step 5: Set Pay Type Thresholds
Specify the initial pay type for standard hours (typically Regular Time). Then add the criteria 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 overtime templates based on common labor policies — including California's consecutive-day overtime requirements — see Overtime Rule Templates.
Step 6: Save
Click the orange Save button in the top right corner. The updated overtime 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 to overtime rules 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 overtime template instead of building from scratch?
Yes. Raken offers pre-built overtime rule 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 policy independently. Assign each employee to the relevant policy.
What happens if an employee works under multiple policies in one pay period?
A warning banner will appear in the Time tab when this occurs. Review those employees' time cards manually to confirm overtime is allocated correctly. See How to Manage Time Cards on the Web for more detail.
Does Raken automatically recalculate overtime when I add a new time card?
Yes. Overtime is recalculated server-side every time a new time card is created or edited — so entries don't need to be added in chronological order for overtime to be calculated correctly.
Technical Specifications
Compatibility: All major web browsers — Time Policy configuration is web-only
Offline Capability: No — requires an active connection
Data Format: N/A — overtime rules govern time card calculations but are not directly exportable
Plan Required: No plan restrictions — available on all Raken plans. Overtime Rule Templates require no additional plan.
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 — existing time cards are not retroactively updated.
At least two pay types must be active before overtime rules can be configured. See Creating Pay Types for Time Policies.
Overtime is recalculated automatically server-side — employees do not need to enter time in chronological order for overtime to be correct.
No plan restrictions apply — this feature is available on all Raken plans.
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