Overtime

In the workplace context, overtime means the extra hours employees work that are above the actual 40 hours a week, which is the average workweek. This is why employers also pay more for overtime, usually at the rate of time-and-a-half or double the regular hourly wage, as per the labor laws. Overtime generally happens due to different causes, for example, extra workloads, tight deadlines, sudden needs, or seasonal changes. The benefit of overtime is that it allows the employer to meet the short-term demands of the number of existing employees, but if not managed well, it may increase labor costs and employee fatigue. Managing overtime has to include distribution and balancing of workloads, casino monitoring of employee working hours, and policies created to reduce exhausting overtime. In addition to this individual level, the extent to which industries and jurisdictions enforce overtime pay and hours of work may be the determining factor, thus implementing fair labor practices and protecting employee rights.

Example

One instance of overtime is when people working at the retail store work more hours around the holiday season to cater to longer hours and customers crowding to buy stuff. Once a store realizes higher demand for certain merchandise, the employees need to work their shifts during the weekends to achieve adequate staffing and quality customer service. Overtime pay usually gives twice the employee’s regular wages at the level specified by labor regulations in this period, as overtime is common. Overtime helps the store fulfill product demands during rush hours without constantly employing extra staff. Nevertheless, the team leaders have to be mindful of the overtime hours and avoid a situation where employees experience fatigue and the labor laws about work hours and overtime pay are being violated.