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When creating an overtime policy, if you select to track overtime daily, you'll have the option to select an overtime category. If you haven't made any overtime categories yet, you'll see the following message.
If you don't need to use any overtime categories, you can continue and save the policy.
If you need to use an overtime category, you must first create one. If you click Go to overtime categories to manage categories, this will automatically save the overtime policy and take you to the overtime categories settings so you can create an overtime category.

