Nobody on your team should be adding up hours to find overtime. NextCrew does it on every timesheet, by the rules of the state the job is in.
Summary
Overtime is set up with you during implementation, then it runs on its own. Once a timesheet is Crew Approved or any later status, NextCrew splits its hours into regular, overtime and double time, for pay and for bill. It does this for employees, and for anyone with no tax classification, who is treated as an employee. It uses the rules of the job's work state, such as California's daily overtime and double time, and your holiday schedule or the client's. It leaves out contractors, timesheets that aren't hourly (such as reimbursements), pay codes with Apply Overtime Calculations unticked, and Not Completed timesheets. When you create an invoice, it keeps a copy of those hours. What goes wrong: putting several days on one timesheet. Overtime needs one timesheet per day, with no overlap.
How it works, in order
- A timesheet reaches Crew Approved or any later status. That's when the calculation starts.
- NextCrew checks the Crew Member's tax classification. Employees, and anyone left blank, get overtime worked out. Contractors don't.
- It counts hourly timesheets only, and only pay codes with Apply Overtime Calculations ticked.
- It applies the rules of the job's work state, and your holiday schedule or the client's.
- It splits the hours into regular, overtime and double time, for pay and for bill.
- When you create an invoice, the invoice copies those hours. If a timesheet changes later, recalculate the invoice.
That's the whole calculation, with nobody adding up hours. Below: what's counted, the state rules, holidays, and keeping invoices in step.
On this page
- From clock-out to invoice
- Weekly overtime: an example
- Pay overtime and bill overtime are worked out separately
- Which week counts: the week-ending day
- One timesheet per day
- What's counted, and what's left out
- Every state has its own rules
- Holidays: two places to set them
- What you see on each timesheet
- Invoices keep a snapshot
- Set up once, during implementation
- Why it's done this way
- If something isn't right
- Questions people ask
From clock-out to invoice
Follow one timesheet from the hours to the invoice. On a phone, swipe sideways to see every step.
| Hours in | NextCrew calculates | Invoice | ||||||||
STEP 1 Crew Hours come in Crew clock in and out, or you add the timesheet. | → | STEP 2 You Crew Approved or later The calculation starts. Not Completed is left out. | → | STEP 3 Automatic Who and what counts Employees, hourly timesheets, pay codes that apply overtime. | → | STEP 4 Automatic State rules and holidays The job's work state, plus your or the client's holidays. | → | STEP 5 Automatic Hours split Regular, overtime and double time, for pay and for bill. | → | STEP 6 Automatic Invoice snapshot The invoice copies the hours when it's created. |
Crew · You · Automatic
Your team approves the hours. NextCrew does the arithmetic.
Weekly overtime: an example
In a state that uses the weekly rule, overtime starts after 40 hours in a week. Here's one Crew Member's week, with one timesheet for each day:
| Day | Hours | Running total |
|---|---|---|
| Monday | 8 | 8 |
| Tuesday | 8 | 16 |
| Wednesday | 10 | 26 |
| Thursday | 10 | 36 |
| Friday | 9 | 45 |
That's 45 hours. NextCrew pays the first 40 as regular and the last 5 as overtime. In California, the two 10-hour days would also have daily overtime, because daily overtime starts after 8 hours in a day.
Pay overtime and bill overtime are worked out separately
Pay overtime follows the Crew Member's own hours: every hour they worked that week, for every client. Bill overtime is charged to a client only when the Crew Member worked over 40 hours for that same client that week.
| Client | Hours this week |
|---|---|
| Client A | 30 |
| Client B | 15 |
| Total | 45 |
The Crew Member is paid 5 hours of overtime. Neither client had them for more than 40 hours, so by default neither is billed overtime.
Want clients billed differently? Tell the NextCrew team during implementation, and it's set up that way for you. For a one-off, change the bill hours on the timesheet with Override.
Which week counts: the week-ending day
Weekly overtime is counted over a week that ends on your company's week-ending day. Some clients run their own week, for example ending on a Saturday instead of a Sunday.
If you want a client's weekly overtime counted on that client's week, tell the NextCrew team during implementation, and set Week-Ending Day on the client: open the client, then Configuration › Payment Settings. If a client has no week-ending day, your company's is used.
A client’s week-ending day
The client’s Configuration tab, under Payment Settings. Leave Week-Ending Day blank to use your company’s.
One timesheet per day
Overtime can only be worked out from timesheets that cover one day each, with no overlap. If several days are keyed into one timesheet, NextCrew can't tell which hours fall on which day, so it can't work out overtime.
| Timesheet | Hours | Overtime worked out? |
|---|---|---|
| Feb 1 to Feb 5, 2026 | 35 | No |
| Feb 6 to Feb 7, 2026 | 15 | No |
That's 50 hours in the week, but no overtime is worked out, because each timesheet spans several days. Enter one timesheet for each day worked, and make sure no two timesheets overlap.
If you still need to record a whole week on one timesheet, set the regular and overtime hours yourself with Override, and add a note saying why. See Overtime, Pay Codes and Overrides on a Timesheet.
What's counted, and what's left out
| Overtime worked out? | Why | |
|---|---|---|
| Employee | Yes | Uses the rules of the job's work state. |
| No tax classification (blank) | Yes | Treated as an employee. |
| Contractor | No | Handle any extra pay under your own policy. |
| A timesheet that isn't hourly, such as a reimbursement | No | A flat amount isn't hours worked. |
| A pay code with Apply Overtime Calculations unticked | No | That pay doesn't count toward overtime. |
| A timesheet at Crew Approved or any later status | Yes | The calculation starts at Crew Approved. |
| A timesheet set to Not Completed | No | It's left out of the calculation. |
Tax classification is on the Crew Member's Payroll tab. See Pay Setup: Employee, Contractor and Payroll Details. Pay codes are in Settings › Code Tables › Pay Codes.
Every state has its own rules
NextCrew uses the rules of the state the job is in, so a Crew Member who works in two states is paid by each state's rules.
| Where the job is | What NextCrew works out |
|---|---|
| Most states | Overtime for hours over 40 in a week. |
| California | Also daily overtime, daily double time and the seventh-day rules. |
| Hawaii | Also daily overtime. |
| A remote job with no work state | Uses the Crew Member's primary work state. |
⚠️ Watch out
NextCrew does the calculation. Whether your pay practices meet the law where your Crew work is your call. Check with whoever advises you on wage and hour rules.
Holidays: two places to set them
| Where | Use it for |
|---|---|
| Your company: Settings › Company Profile › Holiday Schedule | The holidays your agency pays and bills extra for, with a pay and bill markup. See Set Up Your Holiday Schedule. |
| A client: the client's Holiday Schedule tab | A client with its own holiday calendar. For that client's jobs, its schedule is used instead of yours. |
What you see on each timesheet
Every timesheet shows its hours as regular, overtime and double time, for pay and for bill, separately. Pay and bill can differ: by default, a client is billed overtime only for hours over 40 with that client. See Prevent and Manage Overtime.
Need to change them for a real exception? Open the timesheet and use Override, then add a note saying why. See Overtime, Pay Codes and Overrides on a Timesheet.
The hours are worked out again every time you change a timesheet's dates or times. To see overtime for many timesheets at once, click the cog icon on the Operation › Timesheet list and tick OT Pay Hours and OT Bill Hours, or run the Pay and Bill Detail Report. See See overtime across all your timesheets.
Invoices keep a snapshot
When you create an invoice, it copies the overtime from the timesheets at that moment. That way you always have a record of exactly what the invoice was based on.
If a timesheet changes after that, the invoice doesn't change by itself. Recalculate the invoice so it picks up the new hours. If the invoice is locked, unlock it first. See Delete or Correct an Invoice.
Set up once, during implementation
Your implementation team sets this up with you when you start, so the calculation is right from your first payroll. What they check with you:
- Each Crew Member's tax classification.
- Your pay codes, and which ones apply overtime.
- Your holiday schedule, and any client with its own.
- Each client's overtime and double-time rates. See Set Up Rate Configurations for a Client.
Why it's done this way
| Without NextCrew | In NextCrew |
|---|---|
| Adding up each person's hours to find overtime | Worked out on every timesheet as soon as it's Crew Approved |
| Keeping track of each state's rules by hand | Each job uses its own state's rules, including California's daily overtime and double time |
| Reimbursements creeping into overtime | Non-hourly timesheets and excluded pay codes are left out |
| An invoice that quietly changes after it's sent | The invoice keeps a snapshot until you recalculate it |
If something isn't right
| What you see | Check this first | Who fixes it |
|---|---|---|
| No overtime on a long week | The timesheet status (Crew Approved or later), the Crew Member's tax classification, and the pay code. | You |
| A reimbursement counted toward overtime | It should be a non-hourly timesheet, on a pay code with Apply Overtime Calculations unticked. | You, or your admin for the pay code |
| The invoice shows the old hours | The timesheet changed after the invoice was created. Recalculate the invoice. | You |
| No holiday pay on a holiday | Your holiday schedule, or the client's if it has its own. | Your admin |
| A timesheet's hours aren't counted at all | It may be set to Not Completed. | You |
| No overtime on a timesheet that covers several days | Overtime needs one timesheet per day, with no overlap. Split it, or use Override. | You |
| A client wasn't billed overtime, but the Crew Member was paid it | Expected by default: bill overtime needs over 40 hours with that client. | No one, unless the client agreed otherwise |
Questions people ask
Do I have to work out overtime myself?
No. NextCrew works it out on every timesheet once it's Crew Approved or later.
What if a Crew Member has no tax classification?
They're treated as an employee, so overtime is worked out.
Do reimbursements count toward overtime?
No. Overtime is worked out on hourly timesheets only.
Why didn't my invoice update when I fixed a timesheet?
The invoice keeps a copy of the hours from when it was created. Recalculate the invoice.
Does NextCrew handle California double time?
Yes. It works out California's daily overtime, daily double time and seventh-day rules.
Why was the Crew Member paid overtime but the client wasn't billed it?
Pay overtime counts all their hours that week. Bill overtime counts only the hours with that client. Tell the NextCrew team during implementation if you want it set up differently.
Can a client's week end on a different day from ours?
Yes. Set Week-Ending Day on the client's Configuration tab, under Payment Settings, and let the NextCrew team know during implementation. If it's blank, your company's week-ending day is used.
Can I put a whole week on one timesheet?
You can, but overtime won't be worked out. Use one timesheet per day, or set the hours yourself with Override.
Can I change the overtime on one timesheet?
Yes, with Override on the timesheet. Add a note saying why.
Other ways people ask this
- How is overtime calculated?
- How does NextCrew calculate OT?
- When does overtime get calculated?
- Why is there no overtime on this timesheet?
- Does overtime count reimbursements?
- Why didn't the invoice pick up the new overtime?
- How does double time work in California?
- Where do I set stat holidays?
- Why is the client not billed overtime?
- Why is there no overtime on a weekly timesheet?
- How does weekly overtime work?
- Can overtime use the client's week-ending day?
Related guides
- Overtime, Pay Codes and Overrides on a Timesheet — change the hours on one timesheet
- Prevent and Manage Overtime — spot overtime before you book
- Anatomy of a Timesheet: Every Status and Field — what each status means
- Delete or Correct an Invoice — unlock and recalculate
- Get Timesheets Ready for Payroll — the checks before payroll
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