I'll be the first to admin that this reminder is not very intelligent. If there is any opportunity to report time for that day on someone's timesheet, then the remind will go out. I tend to disable this reminder entirely (if you are reporting time, you are likely doing it regularly and don't need an email to remind you). There is also a more intelligent version of these emails that lets you set a threshold of hours and will only notify you if that threshold has not been met (ex: 40 hours). However, that will still not address the vacation scenario.
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