Exclude Holiday hours from overtime hours and add into regular hours

In our current scenario any holiday hours are included in Overtime hours. We want to exclude these holiday hours from overtime hours
Two examples:
In one week an employee works 35 regular hours, with 8 holiday hours, for a total of 43 hours. Currently, the employee would get 40 hours of straight time, with 3 hours of OT. The change required is that it should have 43 hours of straight time, with no OT.
Another example - In one week an employee submits 42 hours of time, with 8 holiday hours for a total of 50 hours. Currently, the employee would get 40 hours of straight time, with 10 hours of OT. With the change, the employee would receive 48 hours of straight time, with 2 hours of OT.
In summary any holiday hours should be included into regular hours not in Overtime hours.
Which setup changes are required to achive this functionalty?

You can exclude the holiday hours from the OT calculation by excluding it from the earning group setup.
--Shiv                                                                                                                                                                                                                                   

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