Overtime Software

Overtime pay is the additional compensation that eligible employees earn when they work more than a standard number of hours in a workweek. Under the Fair Labor Standards Act (FLSA), most non-exempt employees must be paid at least 1.5 times their regular hourly rate for every hour worked beyond 40 per week.

For small business owners, properly calculating and managing overtime pay is crucial. It’s not just about staying compliant with labor laws—it’s also about keeping employees satisfied and payroll predictable. That’s where overtime management software like Homebase can help by automating overtime tracking and calculations for better accuracy.

Whether overtime is 40 or 48 hours depends on your location.

Under the Fair Labor Standards Act (FLSA), most non-exempt employees in the US must be paid overtime when working over 40 hours in a workweek. Some locations, such as California, also require overtime pay after 8 hours in a single day.

Homebase makes it easy for small businesses to stay compliant with local labor laws and overtime management.

The best way to keep track of overtime hours is with automated overtime compliance and payroll software like Homebase. Homebase lets you set overtime rules based on local labor laws. You can set a daily or weekly threshold for overtime hours based on your location and get alerts when employees are getting close to working overtime.

With Homebase, you can track and manage overtime pay for employees who work in multiple locations of your business. You can automatically calculate overtime wages based on different hourly rates or for salaried employees and run payroll without having to do manual calculations.

Using a payroll software with overtime calculation like Homebase makes it easier to manage your labor costs in real-time and reduce payroll errors.

Homebase app keeps track of overtime as employees clock in and out of their shifts. You’ll get an alert if someone is approaching overtime so you can avoid any surprises in payroll.

Homebase lets you set overtime rules based on local labor laws and keeps compliance-friendly digital records for up to 6 years. That means more accurate paychecks for your employees and more peace of mind for you!

If you’re not sure how to calculate overtime pay in payroll, Homebase can do it all for you and do it more accurately.

Not to toot our own horn, but we think Homebase is the best employee time clock software compared to other similar apps–and so do millions of hourly workers. With Homebase, you can make schedules, track time, and run payroll all from one app.

Homebase time clocks automate time tracking with helpful reminders for your team to clock in on time, and critical alerts for you to stay in control of overtime costs. Homebase time clocks eliminate manual data entry by automatically calculating wages and taxes based on the hours, breaks, and overtime tracked in the app.

That’s why Homebase is one of the Top 50 business apps on the Apple App Store and was recognized as a top time tracking solution for small businesses by Forbes in 2025.

Pair a clear overtime policy with time clock controls that enforce it. In Homebase, you can block early clock-ins, restrict clock-ins to scheduled shifts, automatically clock out missed punches, and get alerts before employees reach overtime. Under the FLSA, you generally have to pay overtime that was worked even if you didn’t approve it, so prevention matters more than correction. See our unauthorized overtime guide for policy tips.

Turn on early clock-in prevention in Homebase. Employees can’t clock in until their scheduled shift opens, so you don’t have to remind people one by one. You can also block clock-ins for unscheduled shifts.

Homebase reminds employees when they miss a clock-out and can automatically clock them out. Missed clock-outs are flagged on timesheets so you can fix them before you run payroll.