---
title: How to Exempt Select Employees from Overtime and Holiday Premiums?
---

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# How to Exempt Select Employees from Overtime and Holiday Premiums?

Do you have specific employees or managers who aren't eligible for overtime pay or holiday premiums? Instead of manually adjusting calculations every pay period, you can set up custom zero-rate multiplier tables directly within Sprout Payroll.

This article walks you through creating and assigning these tables to reflect your company's exemption policies accurately.

***Compliance Note:*** *Under the Labor Code, managerial employees and certain other roles are exempt from overtime and holiday premiums, but rank-and-file employees generally cannot be exempted by company policy alone. Please check eligibility with your HR or legal team before assigning a zero-rate table.*

**Step 1: Create a Custom OT Table with Zero Rates**

To implement a policy where specific employees do not receive overtime, holiday pay, or other premium pay:

1. Create a new Overtime (OT) Table in Sprout Payroll. For detailed instructions, see [How to Create OT Tables?](https://guide.sprout.ph/how-to-create-ot-tables?hsLang=en)
2. Set the rates to 0.00 for all applicable OT and holiday categories.
   
   ![](https://guide.sprout.ph/hs-fs/hubfs/undefined-Nov-13-2026-05-48-28-5950-AM.png?width=804&height=365&name=undefined-Nov-13-2026-05-48-28-5950-AM.png)

*Note: Confirm whether your OT table stores the full multiplier (such as 1.25) or only the premium portion. If the table uses full multipliers, setting a rate to 0.00 will remove base pay for those hours entirely, rather than just omitting the additional premium.*

**Configuration Tip:** Set to 0.00 only the premium types the employee isn’t entitled to, and keep the rest.

**Step 2: Assign the Custom OT Table to Exempt Employees**

Once your custom OT table is configured, apply it to the designated employees or managers:

- **For individual employees:** Update the OT Table setting under the Current Payroll Information section in their Employee Profile.
- **For multiple employees:** Use the Bulk Update Employee Payroll Information template to apply the new OT table to several accounts at once
- **For synced accounts:** If your HR and Payroll accounts are synced, see [How to Assign OT Tables for Synced Accounts](https://guide.sprout.ph/how-to-assign-ot-tables-for-synced-accounts?hsLang=en).

**Related Guides**

- [How to Set the OT Rates on Sprout Payroll](https://guide.sprout.ph/how-to-set-the-ot-rates-on-sprout-payroll?hsLang=en)
- [How to Assign OT Tables for Synced Accounts](https://guide.sprout.ph/how-to-assign-ot-tables-for-synced-accounts?hsLang=en)

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