Overtime

An Overtime policy explains when non-exempt employees must be paid premium wages for hours worked beyond required thresholds (such as over 40 in a workweek, and in some jurisdictions over a daily limit), how your organization defines and tracks the workweek and hours worked, and when overtime must be approved, while confirming that properly classified exempt employees aren't eligible for overtime pay.

How to Write an Overtime Policy

• Start with "why" and introduce the concept.
• Explain that overtime may be needed to meet business needs and that advance notice may be provided.
• State that overtime must be approved before it is worked.
• Define who is eligible for overtime pay and who is not.
• Describe how overtime pay is calculated, including the overtime rate and the workweek definition.
• Clarify what counts as hours worked for overtime calculations and what does not.
• Address any jurisdiction-specific overtime triggers (such as daily overtime, seventh-day rules, and double time).
• Explain how overlapping overtime rules are handled (such as whether daily and weekly overtime stack).
• Direct employees to where they can ask questions or raise concerns about overtime and classification.

For advice on writing an Overtime policy in a specific jurisdiction, see below.