> For the complete documentation index, see [llms.txt](https://www.opentimeclock.com/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.opentimeclock.com/docs/product-q3/settings/overtime-rules.md).
# Overtime Rules
It allows administrators to set up and manage overtime policies for employees.
This feature defines when overtime begins (daily or weekly), how it is calculated, and the pay rate applied. It helps ensure accurate payroll, compliance with labor regulations, and transparency in employee time tracking.
1. **Add Rule** – Allows you to create a new overtime rule to manage how overtime hours are calculated.
2. **Rule List** – Displays existing overtime rules (e.g., Daily & Weekly, Daily Only, Weekly Only). You can select a rule to view or edit it.
3. **Rule Name** – The name of the overtime rule you’re creating or editing to easily identify it.
4. **Rate 1 Settings** – Lets you define the first overtime rate (e.g., 1.5 times base pay) and specify when it starts (after a certain number of hours daily or weekly).
5. **Rate 2 Settings** – Lets you define the second overtime rate (e.g., 2 times base pay) and specify when it starts (after a higher number of hours daily or weekly).
6. **Assigned Users** – Lists the employees assigned to this overtime rule. Only these employees will have their time calculated using the rule.
7. **Delete This Rule** – Removes the selected overtime rule from the system.
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