Overtime eligibility
Last updated: August 25, 2026
Overtime in Alpaca is controlled by two switches: one at the organization level, one per worker. This article explains both, and how the overtime premium shows up on the Payroll page.
Overtime is opt-in for the organization
Overtime is an opt-in feature enabled per organization. If your clinic does not have it turned on, no overtime is calculated, no overtime badges appear on the Payroll page, and the per-worker eligibility flag has no effect. Email support if you need it enabled.
The per-worker flag
Overtime Eligible is set on the worker's payroll contract. You set it when adding the team member, in the Pay Information step — a switch labelled Overtime Eligible, described as "Enable if this team member is eligible for overtime pay". Afterwards it is visible on the worker's profile under Pay Rates → Payroll Contract → Overtime Eligible.
As a rule of thumb: non-exempt hourly staff (most BTs and RBTs) are eligible; exempt salaried staff usually are not. This is a legal classification, not a preference — if you are unsure for a particular role, take advice before setting it.
How the premium is calculated
Alpaca sends the payroll provider your per-day hours and rates. The provider works out the overtime from those, applying the applicable rules for the worker's state, and returns 1.5× and 2× hours with the resulting amounts.
The number Alpaca adds on the Payroll page is the overtime premium — the extra above straight time — not the full overtime amount. That is because the table's hours × rate figure has already paid those hours at their base rate. Adding the whole overtime amount would pay the base wage twice.
Where you see it
A summary badge at the top of the Payroll Details page for the period.
Per-worker overtime hours and amounts on each row, folded into that worker's total pay.
1.5× and 2× hour counts shown as informational badges on the TOTAL row.
For an unconfirmed run these figures are a projection and can move slightly before the run is confirmed. Alpaca allows a small tolerance when comparing the table to the payroll run so that rounding differences are not reported as discrepancies.
Why an overtime-eligible worker might show no overtime
Their hours in the week did not cross the threshold. Overtime is calculated weekly, not per pay period — a heavy first week and a light second week may produce overtime even though the fortnight looks normal, and vice versa.
The hours have not been signed or verified yet, so they are not in the run at all.
Overtime is not enabled for your organization.
The worker's payroll contract has Overtime Eligible switched off.
Overtime and leave
Leave policies that accrue based on hours worked can be configured to include or exclude overtime hours — the choice is on the policy, not on the worker. See Configuring leave time accruals.
Still stuck? Email support@alpacahealth.io and we will take a look.