You can configure "Time Settings and Warnings", formerly known as "Parameters" in Classic.
These settings are used to control functionality related to time punch approval and payroll transfer. It also creates a red fram around the punch in the schedule view when the warning is fullfilled.
You'll find the time settings page under Account settings > Templates in the menu on the left-hand side.
You'll see a grey text under each functionality that describes what the setting does. To activate/inactivate a setting, just check or uncheck the box under the activate column and it saves automatically.