diff --git a/enterprise/app/controllers/api/v1/accounts/agent_capacity_policies_controller.rb b/enterprise/app/controllers/api/v1/accounts/agent_capacity_policies_controller.rb
index d6d166ee5..9ece78762 100644
--- a/enterprise/app/controllers/api/v1/accounts/agent_capacity_policies_controller.rb
+++ b/enterprise/app/controllers/api/v1/accounts/agent_capacity_policies_controller.rb
@@ -27,7 +27,7 @@ class Api::V1::Accounts::AgentCapacityPoliciesController < Api::V1::Accounts::En
     params.require(:agent_capacity_policy).permit(
       :name,
       :description,
-      exclusion_rules: [:overall_capacity, { hours: [], days: [] }]
+      exclusion_rules: [:exclude_older_than_hours, { excluded_labels: [] }]
     )
   end
 
diff --git a/spec/enterprise/controllers/api/v1/accounts/agent_capacity_policies_controller_spec.rb b/spec/enterprise/controllers/api/v1/accounts/agent_capacity_policies_controller_spec.rb
index d6b171fe8..691891027 100644
--- a/spec/enterprise/controllers/api/v1/accounts/agent_capacity_policies_controller_spec.rb
+++ b/spec/enterprise/controllers/api/v1/accounts/agent_capacity_policies_controller_spec.rb
@@ -103,7 +103,10 @@ RSpec.describe 'Agent Capacity Policies API', type: :request do
           agent_capacity_policy: {
             name: 'Test Policy',
             description: 'Test Description',
-            exclusion_rules: { overall_capacity: 10 }
+            exclusion_rules: {
+              excluded_labels: %w[urgent spam],
+              exclude_older_than_hours: 24
+            }
           }
         }
 
@@ -115,6 +118,10 @@ RSpec.describe 'Agent Capacity Policies API', type: :request do
         expect(response).to have_http_status(:success)
         expect(response.parsed_body['name']).to eq('Test Policy')
         expect(response.parsed_body['description']).to eq('Test Description')
+        expect(response.parsed_body['exclusion_rules']).to eq({
+                                                                'excluded_labels' => %w[urgent spam],
+                                                                'exclude_older_than_hours' => 24
+                                                              })
       end
 
       it 'returns validation errors for invalid data' do
@@ -165,6 +172,28 @@ RSpec.describe 'Agent Capacity Policies API', type: :request do
         expect(response).to have_http_status(:success)
         expect(response.parsed_body['name']).to eq('Updated Policy')
       end
+
+      it 'updates exclusion rules when administrator' do
+        params = {
+          agent_capacity_policy: {
+            exclusion_rules: {
+              excluded_labels: %w[vip priority],
+              exclude_older_than_hours: 48
+            }
+          }
+        }
+
+        put "/api/v1/accounts/#{account.id}/agent_capacity_policies/#{agent_capacity_policy.id}",
+            params: params,
+            headers: administrator.create_new_auth_token,
+            as: :json
+
+        expect(response).to have_http_status(:success)
+        expect(response.parsed_body['exclusion_rules']).to eq({
+                                                                'excluded_labels' => %w[vip priority],
+                                                                'exclude_older_than_hours' => 48
+                                                              })
+      end
     end
   end