Apologies for the delay in getting back to you. Filtering based on Time of Day Sets was an issue in the Flash console, however it has been improved as part of the Events Console. The filtering of time of day sets is based on the default LEM manager timezone (PST) so this needs to be taken into consideration. We are tracking this bug to ensure that the time of day sets reflect the timezone you have set on the manager, not the default PST.
Could you try viewing the filter in the HTML5 Events Console and confirm if your 'non-business hours' filter is working ok? In order to access the HTML5 interface you can browse directly to 'http://<your-lem-ip>/webui' or via the 'Visit LEM Events Console' link on the top right of the Flash console.