What constitutes overtime in employment?

Overtime refers to additional hours worked by an employee beyond their regular working schedule, with corresponding pay received for this extra time.

Overtime Hours

Overtime hours are those worked beyond an employee's standard working hours, determined by various factors such as custom, legislation, or agreements between employers and workers. Overtime laws vary between countries and jurisdictions, aiming to prevent excessive work hours and ensure worker health and productivity.

Eligibility for Overtime

Workers, regardless of their employment status, may be eligible for overtime if they exceed a specified number of working hours per week. Governments often impose caps on overtime hours to protect employee well-being.

Overtime Pay

Overtime pay, also known as overtime compensation or wages, is the additional income workers receive for working overtime. Overtime rates differ based on company policy, local regulations, and the number of overtime hours worked. Some jurisdictions mandate higher rates for overtime work, such as time and a half or double time.

Calculating Overtime Pay

Calculating overtime pay involves considering various factors, including the employee's hourly or salaried status, fixed or fluctuating schedules, multiple rates of pay, and any bonuses or tips received. In the US, non-exempt employees working beyond the 40-hour workweek typically receive one and a half times their regular pay rate for overtime hours. However, state laws may introduce variations, such as double-time pay in certain circumstances, as observed in California.