Overtime Management

Learn how to monitor, manage, and minimize overtime in your organization using the Shifts platform’s powerful tracking, notification, and analysis tools.

Overview

The Overtime Management feature helps managers track, analyze, and control employee overtime hours to maintain labor costs and ensure compliance with labor regulations. This article explains how to monitor overtime trends, receive notifications about potential issues, and implement strategies to minimize unnecessary overtime.

Accessing Overtime Management Tools

To access overtime management features:

1. Log in with a manager or administrator account
2. Navigate to Dashboard > Business Intelligence
3. Select the Financial Analytics tab to view overtime costs
4. Select the Operational Insights tab to view overtime hours

Additional overtime management tools are available in the Compliance and Attendance Management sections.

Understanding Overtime Calculation

The Shifts platform calculates overtime based on your organization’s configuration:

Weekly Overtime

By default, employees who work more than 40 hours in a week receive overtime pay:

1. Regular hours: First 40 hours in the workweek
2. Overtime hours: Hours worked beyond 40 in the workweek
3. Overtime rate: Typically 1.5× the employee’s regular hourly rate

Daily Overtime

If your organization uses daily overtime calculation:

1. Regular hours: First 8 hours in a workday
2. Overtime hours: Hours worked beyond 8 in a workday
3. Overtime rate: Typically 1.5× the employee’s regular hourly rate

Double Time

For extended working hours, double time may apply:

1. Double time hours: Hours worked beyond 60 in a workweek or 12 in a workday (configurable)
2. Double time rate: Typically 2× the employee’s regular hourly rate

Monitoring Overtime

Overtime Dashboard

The Financial Analytics dashboard provides a comprehensive view of overtime:

1. Navigate to Dashboard > Business Intelligence > Financial Analytics
2. The dashboard includes:
   • Overtime Cost Impact: Chart comparing regular vs. overtime costs
   • Cost Breakdown: Pie chart showing overtime as percentage of total labor costs
   • Overtime by Location: Bar chart showing overtime hours by location
   • Overtime Trends: Line chart showing overtime hours over time

Use the filters at the top of the page to focus on specific:

• Date ranges
• Locations
• Departments
• Employee types

Overtime Reports

For detailed overtime analysis:

1. Navigate to Reports > Labor Costs > Overtime Analysis
2. Configure report parameters:
   • Date range
   • Locations/departments
   • Employee types
3. Click Generate Report
4. The report includes:
   • Total overtime hours
   • Overtime cost
   • Overtime percentage of total hours
   • Top employees with overtime
   • Overtime hours by day of week
5. Use the Export button to download the report as CSV or PDF

Individual Employee Overtime

To view overtime for a specific employee:

1. Navigate to Employee Management
2. Search for and select the employee
3. Click the Hours & Attendance tab
4. View the Overtime Summary section showing:
   • Current week’s overtime hours
   • Month-to-date overtime hours
   • Year-to-date overtime hours
   • Overtime trend chart

Receiving Overtime Alerts

Configure the system to alert you about potential overtime issues:

Setting Up Overtime Notifications

1. Navigate to Admin > Notifications > Notification Rules
2. Click Create New Rule
3. Select Overtime as the notification type
4. Configure trigger conditions:
   • Approaching Threshold: Get notified when employees approach overtime threshold
   • Exceeded Threshold: Get notified when employees exceed overtime threshold
   • Percentage Increase: Get notified when overtime increases by a certain percentage
5. Set notification recipients (managers, supervisors, etc.)
6. Choose notification method (in-app, email, or both)
7. Click Save Rule

Reviewing Overtime Notifications

1. Notifications appear in your dashboard notification center
2. Click on a notification to see details:
   • Employee name
   • Hours worked
   • Threshold exceeded
   • Potential cost impact
3. Take appropriate action based on the notification

Preventing Excessive Overtime

Schedule Optimization

The Shifts platform helps prevent overtime during the scheduling process:

1. When creating or editing shifts, the system shows a Weekly Hours indicator for each employee
2. Employees approaching overtime show a Warning indicator
3. The scheduling interface highlights potential overtime conflicts
4. Use the Recommended Employees feature to find alternatives with fewer hours

Overtime Approval Workflow

Implement an approval process for overtime:

1. Navigate to Admin > Compliance > Overtime Settings
2. Enable Require Overtime Approval
3. Set the approval threshold (e.g., any hours beyond 40 per week)
4. Configure who can approve overtime requests:
   • Direct manager only
   • Any manager
   • Department head
5. When employees approach overtime, managers receive approval requests
6. Approve or deny requests based on business needs and budget constraints

Analyzing Overtime Patterns

Identify the root causes of overtime with analytical tools:

Overtime Pattern Analysis

1. Navigate to Reports > Analytics > Overtime Patterns
2. The system analyzes overtime data to identify patterns:
   • Seasonal Patterns: Overtime spikes during certain times of year
   • Departmental Patterns: Departments with consistent overtime
   • Day of Week Patterns: Days with higher overtime frequency
   • Employee Patterns: Employees with recurring overtime
3. Use these insights to address underlying causes of overtime

Labor Coverage Analysis

1. Navigate to Reports > Staffing > Coverage Analysis
2. The system compares scheduled staff to actual needs
3. Identify understaffed periods that lead to overtime
4. Use the Recommended Staffing Levels to optimize future schedules

Managing Labor Costs

Overtime Budget Tracking

Monitor overtime costs against budgets:

1. Navigate to Financial Analytics > Budget Tracking
2. View the Overtime Budget vs. Actual Overtime Costs
3. See breakdown by:
   • Department
   • Location
   • Time period
4. The system highlights variances exceeding threshold percentages

Cost Projection

When scheduling shifts, see projected costs including overtime:

1. In the shift creation interface, the Cost Estimate shows:
   • Regular hours cost
   • Projected overtime cost
   • Total cost
2. Adjust schedules to minimize projected overtime costs
3. See how schedule changes impact the overall labor budget

Compliance Monitoring

Ensure overtime practices comply with labor regulations:

Compliance Dashboard

1. Navigate to Compliance > Labor Law Compliance
2. The dashboard shows:
   • Overtime compliance status
   • Rest period compliance
   • Maximum hours compliance
   • Required break compliance
3. Address any flagged compliance issues immediately

Compliance Reports

Generate detailed compliance reports:

1. Navigate to Reports > Compliance > Overtime Compliance
2. Configure report parameters
3. Generate report showing:
   • Overtime hours by employee
   • Compliance with maximum hour restrictions
   • Proper overtime payment verification
   • Historical compliance trends

Best Practices

For optimal overtime management:

1. Monitor Proactively: Check overtime dashboards weekly
2. Address Patterns: Identify and address recurring overtime causes
3. Cross-Train Employees: Develop a flexible workforce to cover gaps
4. Optimize Scheduling: Use forecasting to match staffing to demand
5. Define Clear Policies: Establish when overtime is appropriate and when it’s not
6. Communicate Expectations: Ensure employees understand overtime policies
7. Analyze Root Causes: Look beyond symptoms to solve underlying issues
8. Balance Workloads: Distribute work evenly among qualified employees
9. Regular Audits: Review overtime approvals and justifications quarterly
10. Document Exceptions: Maintain records of necessary overtime approvals

Related Resources

• Compliance Reports
• Publishing Schedules
• Pay Rules
• Labor Cost Tracking

This article should be updated when:

1. Overtime calculation methods change
2. New overtime monitoring visualizations are added
3. Notification options are expanded
4. Compliance regulations affecting overtime change
5. New preventative scheduling features are implemented