Overview
Nowsta calculates overtime based on your company's configured overtime rules. These settings determine when hours transition from regular time to overtime and may include daily overtime, weekly overtime, double-time, seventh consecutive workday overtime, and Spread of Hours.
When an employee works a shift that spans midnight, Nowsta resets the daily overtime calculation at 12:00 AM. Hours worked after midnight are evaluated as part of the new calendar day, even if they belong to the same shift.
As a result, overnight shifts may appear as multiple entries in payroll reports, and the hours worked after midnight may begin as regular hours until the daily overtime threshold for the new day is reached.
Overtime Rules Supported by Nowsta
Depending on your company's configuration, Nowsta can calculate:
Daily Overtime â Hours worked beyond the configured daily threshold.
Weekly Overtime â Hours worked beyond the configured weekly threshold.
Double-Time â Hours worked beyond the configured double-time threshold.
Seventh Consecutive Workday Overtime â Overtime rules that apply when an employee works seven consecutive days.
Spread of Hours â Additional compensation based on applicable labor rules.
The overtime rules that apply to your employees depend on your company's configured overtime settings.
How Overtime Is Calculated
Nowsta evaluates overtime according to your company's configured overtime rules.
For daily overtime, the calculation is performed per calendar day.
If a shift continues past midnight, the daily overtime calculation restarts at 12:00 AM, and the hours worked after midnight are treated as part of the next calendar day.
For example, if your company has:
Daily Overtime: Enabled
Daily Overtime Threshold: 12 hours
An employee who works from 10:22 AM until 1:15 AM the next day works a total of 14.883 hours, but the shift is evaluated as:
Calendar Day | Hours Worked |
July 7 | 13.633 hours |
July 8 | 1.250 hours |
Daily overtime is calculated separately for each day.
How Overnight Shifts Appear in Payroll Reports
All payroll reports organize worked hours by calendar date.
If an employee works across midnight, the shift is divided into separate entries for each day.
For example:
Date | Time Worked |
July 7 | 10:22 AM â 12:00 AM |
July 8 | 12:00 AM â 1:15 AM |
This is expected behavior.
Although the employee worked one continuous shift, the payroll report separates the hours because the daily overtime calculation restarts at midnight.
Example
An employee works:
Clock In: July 7, 10:22 AM
Clock Out: July 8, 1:15 AM
Total Shift: 14.883 hours
The company has:
Daily Overtime Threshold: 12 hours
Nowsta evaluates each calendar day separately.
July 7
Hours | Classification |
First 12.000 hours | Regular Hours |
Remaining 1.633 hours | Overtime Hours |
July 8
Hours | Classification |
1.250 hours | Regular Hours |
Because the employee worked only 1.250 hours on July 8, those hours do not exceed the 12-hour daily overtime threshold for that day and remain regular hours.
The payroll report therefore shows:
Date | Regular Hours | Overtime Hours |
July 7 | 12.000 | 1.633 |
July 8 | 1.250 | 0.000 |
Totals
Regular Hours: 13.250
Overtime Hours: 1.633
Although the employee worked more than 12 consecutive hours, daily overtime is calculated independently for each calendar day. This is why the hours worked after midnight are shown as regular hours.
Frequently Asked Questions
Does crossing midnight reset daily overtime?
Yes. Nowsta calculates daily overtime separately for each calendar day. When a shift crosses midnight, the daily overtime calculation restarts at 12:00 AM, and the hours worked after midnight begin as regular hours for the new day.
Why does one shift appear as multiple rows?
Payroll reports organize worked hours by calendar date. If a shift spans midnight, the report separates the shift into one entry for each calendar day.
Why do I see regular hours after midnight even though the employee already exceeded the daily overtime threshold?
This is expected behavior. Daily overtime is calculated independently for each calendar day. When the shift crosses midnight, the hours worked after 12:00 AM belong to a new day and begin as regular hours until the employee reaches the daily overtime threshold again.
Which payroll reports does this apply to?
This behavior applies to all payroll reports that organize worked hours by calendar date.
Which overtime settings affect these calculations?
Depending on your company's configuration, overtime calculations may include:
Daily Overtime
Weekly Overtime
Double-Time
Seventh Consecutive Workday Overtime
Spread of Hours
Overtime Calculation Method
Best Practices
When reviewing overnight shifts:
Review the hours worked for each calendar day.
Keep in mind that daily overtime calculations restart at midnight.
Verify your company's configured overtime rules when reviewing payroll reports.
Compare the payroll report against your overtime settings to understand how regular and overtime hours are allocated.
Additional Notes
Overtime calculations are based on your company's configured overtime settings.
Overnight shifts are divided at midnight for payroll reporting purposes.
Daily overtime calculations restart at the beginning of each calendar day.
Weekly overtime, double-time, and other overtime rules continue to follow your company's configured settings.
If your payroll results do not match your configured overtime rules, please contact the Nowsta Support Team at support@nowsta.com for assistance.