Overtime Compensation Policy HR

Overtime Compensation Policy

Effective Date: [Month Day, Year]

Policy Overview


This Overtime Compensation Policy outlines the procedures and guidelines for compensating employees for hours worked beyond their regular work schedule. The company is committed to fair and compliant compensation practices in accordance with applicable labor laws.

Overtime Eligibility

  • All non-exempt employees are eligible for overtime compensation.

  • Exempt employees are not eligible for overtime pay.

Overtime Rates

  • Overtime pay is calculated at a rate of time-and-a-half (1.5x) the employee's regular hourly rate for all hours worked in excess of 40 hours per week.

Calculation Of Overtime

  • Overtime hours are calculated on a weekly basis, from Sunday to Saturday.

  • Overtime is applicable for hours worked beyond the standard 40-hour workweek.

Authorization For Overtime

  • Employees must obtain prior approval from their supervisor or manager before working overtime hours.

  • Unauthorized overtime may not be eligible for additional compensation.

Record-Keeping

  • Employees are responsible for accurately recording their overtime hours on the company's designated timekeeping system.

  • Supervisors or managers must review and approve all recorded overtime hours.

Payment Frequency

  • Overtime pay will be included in the employee's regular paycheck.

  • Overtime compensation will be processed according to the company's standard pay schedule.

Legal Compliance

  • This policy is in compliance with all relevant local, state, and federal labor laws, including the Fair Labor Standards Act (FLSA).

Dispute Resolution

  • Employees with concerns or disputes related to overtime compensation should follow the company's established grievance resolution procedure.

Monitoring And Enforcement

  • The Human Resources department will monitor compliance with this policy and take appropriate actions to address violations.

Changes To Policy

  • The company reserves the right to modify this policy as needed. Employees will be informed of any policy changes in a timely manner.

Overtime Compensation Rates

Hours Worked

Hourly Rate

Overtime Rate (1.5x)

0-40 hours

$15.00

N/A

Over 40 hours

$15.00

$22.50

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