Hour Cap Setup And Calculations – Rapid Works Knowledge Center

Hour caps in ERP define the maximum number of hours an employee is permitted to work within a specified time frame - daily, weekly, or per pay period. These caps help maintain compliance with labor regulations and support internal workforce management policies. The structure of hour cap calculations depends on how Regular Time (RT), Overtime (OT), and Double Time (DT) hours are categorized and prioritized.

Setting Maximum Hours and Days

Maximum allowable hours and days can be configured at the company level by navigating to:

Company → My Company → Payroll → Pay Period Settings

In this section, select Edit Max Hours/Days to define the following:

Number of days in the pay period
Maximum Regular Hours
Maximum Overtime Hours (if applicable)

These values determine the upper limits for working hours per employee for the defined pay period.

Default Shift Limits

Shift-specific caps for RT and OT hours can be configured separately. To set these defaults, go to:

Company → My Company → Payroll → Shift Settings

Here, define:

Default maximum regular time hours per shift
Default maximum overtime hours per shift

Hour Cap Calculation Options

ERP supports two calculation modes for determining how RT, OT, and DT hours contribute to hour caps:

1. Include All Hours

All hours—RT, OT, and DT—are counted towards the shift and pay period caps for RT. OT and DT hours also count towards OT caps, in sequence based on the Overtime Priority setting. This method treats all time worked as contributing towards the total allowable limits.

2. Include Same-Type Hours

Only same-type hours are counted toward their respective caps:

OT and DT hours are not included in RT caps.
DT hours are not included in OT caps.

However, if the total RT hours fall short of the RT cap, OT hours will fill the remainder of the RT cap before contributing to the OT cap. This approach offers more precise control over how each hour type impacts overall time limits.

Summary

The hour cap setup in ERP allows tailored control over labor time tracking, ensuring compliance and supporting efficient payroll processing.

For additional guidance, consult the yellow tooltip when hovering over any of the settings in Company → My Company → Payroll section.