HR Management & Compliance

Sample Overtime Policy





This policy applies to
nonexempt employees only. Nonexempt employees may be required to work overtime
hours when operating requirements or other business needs of [Company] cannot
be fulfilled during regular working hours.

 

Overtime Compensation

The overtime pay rates
are as follows:

 

Time and one half: An employee will receive 11/2 times his or her regular
hourly rate of pay for all hours worked beyond 8 hours in one workday or 40
hours in a single workweek, in accordance with state and federal law.

 

Double time: An employee will receive double time
for any work in excess of 12 hours in one workday. Double time will also be
paid for all work over 8 hours on the seventh consecutive

day of work in a week. Overtime
pay is based only on actual hours worked. Hours paid for time off, such as
lunch, vacation, illness, or other causes, will not be considered hours worked
for purposes of computing overtime pay. Make-up time will not be counted in the
total number of hours worked when computing overtime compensation, unless the
total hours worked exceed 11 hours in a day or 40 in a week.

 

Supervisor Approval and
Time Sheets

Nonexempt employees are
not permitted to work in excess of their regularly scheduled hours without

their supervisor’s
advance written approval. Working overtime without prior supervisor
authorization or failure to work scheduled overtime may result in disciplinary
action, up to and including termination.

 

All nonexempt employees,
whether salaried or hourly, must complete and sign a [daily, weekly, or
biweekly] time sheet reflecting actual hours worked each day, including
overtime. The time sheet must be verified and signed by the employee’s supervisor.

 


Paying Overtime: 10 Key Exemption Concepts

Only one thing really matters in the determination as to whether or not an employee is exempt: The duties the employee performs. Learn how to avoid costly, preventable mistakes with our free White Paper, Paying Overtime: 10 Key Exemption Concepts.


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