Threshold rule
A commonly used custom rule set is Threshold, of which there are 4 variations: Daily, Weekly, Contracted hours or Over running time period. A Threshold custom rule set is useful for setting a threshold in hours/days/time period and automatically converting any excess time into overtime. To create a custom rule set, change the Rule Type of an overtime rule group to Custom rule set, then use the Add Rule button.
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When using a threshold, the system will automatically allocate any excess time to the designated overtime rate
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To setup a Daily Threshold overtime rule:

Select Threshold (daily) as the Rule Type

Enter a description for the Rule

Select which days to apply the rule to

Select the source rate used in the timesheet

Use Output to rate for the target output mode

Select the overtime target rate with reference to point 5. This will be the rate for which overtime will be outputted to

Enter the daily time threshold in hours