What is Employee Overtime?

 Employee Overtime is an amount of working time that non-exempt employees work beyond an established limit that is determined by regular job schedules. It shows how many hours an employee or worker has spent in excess of basic workday (typically 8 hours a day, 5 days a week).

 An employee who works overtime should be paid at extra cash compensation which is called overtime pay. The amount of overtime pay is defined by the employer and agreed with the employee. It is juristically stated by company rules, job contract, statute, or union agreement. Thus, overtime pay legally determines what bonus or compensation an hourly employee will get for the work done over the regular job schedule.

 Sometimes overtime pay can be replaced with paid time-off. It means an employer and a hourly employee agree on banking overtime hours for paid time-off, so the employee is given a rate of paid time-off for each hour worked beyond the regular job schedule. These relationships should be legally agreed between the parties and constituted by company rules and policies. The employer should provide all necessary accounting to ensure correct payroll processing and overtime pay calculation.

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