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My workplace uses Google Apps, and we're seeing some inconsistent behavior with new events created on our personal calendars. For example:

  1. I see mid-day events default to Busy, but all-day events default to Available. (I've been told that this is the default, to account for birthdays and holidays.)

  2. A co-worker is seeing everything default to Available.

  3. Another is seeing everything default to Busy.

Is there a setting to control this? I didn't see one in my personal settings, and have only found feature requests for this when searching. Maybe there's a global setting for the Administrator?

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No, there is no setting to control the default 'Busy / Available' status on newly created events. I checked at both the user and Admin level.

As you mentioned, Google Calendar defaults to Available for all day events, and Busy for partial day events.

All of my testing was done using calendar.google.com on a Google Apps (now G Suite) account. If either of your co-workers is using another calendar client, like the IOS native calendar app, their milage may vary.

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