I need to create a PTO policy that does not allow PTO on overtime pay. Our employees get .038 hours for every hour worked unless the hr worked is in overtime pay

Welcome to the QuickBooks Community, anahi-martinez.

I'll give some info about the PTO hours policy. 

If your account integrates with QuickBooks Time, PTO does not count toward OT calculations only the working hours. You can read this article for reference: Set up overtime tracking.

For the PTO policy setup in QuickBooks Online, the option to not allow the PTO on overtime is unavailable. You'll want to manually adjust the number of hours in the Maximum allowed field. I recommend sending a product suggestion to our developers. They'll review this idea and might consider updating it in the future.

Here's how you can send feedback:

1. Go to the Gear located at the top.
2. Under Profile, click Feedback.

If you want to check the status of your request, you can click this link: Customer Feedback for QuickBooks Online.

For more information on how to set up time off, update your existing policy, and add paid or unpaid time off, you can check out this article: Set up and track time off in payroll.

I'll be around if you have any additional question or need help with the other features in QuickBooks. Take care!