with SampleData (PERSON, [DATE], [HOURS], [DOW]) as

(

SELECT 1234,'03/31/2014','8.00','Monday'

UNION ALL SELECT 1234,'04/01/2014','8.00','Tuesday'

UNION ALL SELECT 1234,'04/02/2014','9.00','Wednesday'

UNION ALL SELECT 1234,'04/03/2014','8.00','Thursday'

UNION ALL SELECT 1234,'04/04/2014','9.00','Friday'

--UNION ALL SELECT 1234,'04/07/2014','10.00','Monday'

--UNION ALL SELECT 1234,'04/08/2014','8.00','Tuesday'

--UNION ALL SELECT 1234,'04/09/2014','8.00','Wednesday'

--UNION ALL SELECT 1234,'04/10/2014','9.00','Thursday'

--UNION ALL SELECT 1234,'04/11/2014','9.00','Friday'

)

select

row_number() over (partition by person order by person desc) rn

,PERSON

, convert(datetime,[DATE]) [Date], convert(decimal(8,2),[HOURS]) [Hours], [DOW]

into #t

FROM SampleData

select

person

,min(date)

,sum(reg_hours)[reg_hours]

,sum(daily_ot)[daily_ot]

,sum(weekly_ot)[weekly_ot]

from

(

select

a.person

,a.date

,a.hours

,sum(b.hours) [RunTotal]

,case when a.hours > 8 then 8 else a.hours end [Reg_Hours]

,case when a.hours > 8 and sum(b.hours) <= 40 then a.hours - 8 else 0 end [Daily_OT]

,case when a.hours > 8 and sum(b.hours) > 40 then a.hours - 8 else 0 end [Weekly_OT]

from #t a

join #t b on a.rn >= b.rn and a.person = b.person

group by a.person, a.date , a.hours

) a

group by a.person

This may not be the most elegant solution but it works. Especially if you are in a time crunch. Hope it helps. I'll let you figure out the each week issue.