Does Paid Leave Count Towards Weekly Overtime?

We often get asked if paid leave counts toward weekly overtime calculations. Well, that depends on whether you want it to or not. By default, any paid leave time (vacation, sick time, holidays, etc.) does not count as hours worked for the calculation of weekly overtime. We've found this to be the way most businesses want and expect their time clock software to work. For example, if someone works 35 hours in the week and also gets paid for an 8 hour holiday, their timecard would show 35 regular hours and 8 hours paid leave.

However, there is a seldom used setting that causes leave hours to count towards weekly overtime calculations. Turn on administration, click Configure and Overtime. Click Overtime Preferences in the toolbar.

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Now if someone works 35 hours in the week and also gets paid for an 8 hour holiday, their timecard would show 40 regular hours and 3 hours weekly overtime.