Last updated: Apr 8, 2026, 10:01 AM
| For Toast Payroll-specific information, read Toast Payroll: Manage Overtime and Toast Payroll: Get Help With Blended Overtime. The following article is for customers who do not have Toast Payroll. |
While Toast allows each restaurant to configure and manage its own overtime rules, we are not liable for overtime miscalculations.
If you have employees who are eligible for overtime pay, you are able to configure the rules in Toast Web to help calculate overtime pay. These configurations will impact your Labor Summary and payroll reports.
The following overtime rules, based on the state your business is located in, have been pre-configured in your Toast Web system:
To create a new overtime rule for Toast Web reports (see Toast Payroll: Manage Overtime for Toast Payroll configurations):
The overtime rule you've added will be listed on the Overtime Rules page.
To make changes to an existing rule, select the name of the rule, enter the new amounts, and choose Update Rule.
Toast's overtime calculation is dependent on the location of your restaurant as listed in Toast Web. Due to constantly changing government regulations, Toast cannot guarantee the accuracy of overtime calculations. Please reference your local labor laws to ensure your overtime calculations are accurate.
The following will cover more of what you need to know about the overtime calculation engine.
Note: One of the most common reasons overtime calculations seem incorrect is because the system relies on a work week "start day." Contact Customer Care to ensure your system is configured based on your preference.
Our overtime calculation engine is an automatic tool that is based on this website from the Department of Labor. The engine pulls data from inside each of the individual state boxes, also taking federal laws into consideration.
It's important to note that the engine cannot account for exceptions. For example, Alaska has an exception that states "The premium overtime pay requirement on either a daily or weekly basis is not applicable to employers of fewer than 4 employees." If an exemption applies to your restaurant, Toast will not factor that in automatically.
Since the overtime calculation engine is automatic, it can't adjust for exceptions. If your restaurant is an exception to your state's rules, it's possible to make the adjustments needed after exporting your Labor Report.
There may be instances when an employee works two different jobs within the same pay period and they're paid two separate wages. For example, your employee could be paid $7.25 when they are a server and $10 when they are a host.
Per the Fair Labor Standards Act (FLSA), covered nonexempt employees must receive overtime pay for all hours worked over 40 in a workweek at a rate not less than time and one-half of their regular rate of pay. See the complete set of guidelines by visiting the Department of Labor's overtime pay page or find information on exempt employees here.
In Toast Web, it will only show overtime based on the job an employee was clocked into once they surpassed your system's overtime threshold. If you would like to have access to automatic blended overtime, consider purchasing Toast Payroll.
Overtime information on employees can be found under Labor reporting (Reports > Labor > Labor summary).
On the Labor Summary report, under Restaurant Summary, you'll be able to see a high-level view of which job roles have regular hours and overtime hours. Use the report filter or simply scroll down to view individual employees. To learn more, check out Labor Reports Overview.
If you'd like alerts to when your employees are approaching overtime (even while you're making next period's schedule), we recommend trying out Sling by Toast.
This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.