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Web TimeSheet administrator has to set up the overtime rule and assign it to the users. However, the administrator is unable to find the Overtime Rules option under the Timesheet setup section in the side menu.

This may occur if the Web TimeSheet has both the TimeBill and TimeAttend modules, however the administrator's user profile has only the TimeBill license seat enabled. The overtime rule feature is a part of the TimeAttend module.

Enable Time Attend seat license in the Administrator's user profile.