Company Overtime Policy Example

A company overtime policy is a set of guidelines that outlines the conditions under which employees are eligible for overtime pay, how overtime is calculated, and what procedures must be followed in order to approve overtime. Here is an example of a company overtime policy:

Purpose
The purpose of our Overtime Policy is to establish guidelines for determining when overtime is required, how it is approved, and how it is compensated.

Eligibility
Non-exempt employees are eligible for overtime pay in accordance with federal and state laws. Exempt employees are not eligible for overtime pay.

Approval
All overtime must be approved in advance by the employee's supervisor or manager. Employees are required to submit a written request for overtime and receive approval before working any overtime hours. Failure to obtain prior approval may result in the denial of overtime pay.

Calculation
Overtime is calculated based on the number of hours worked in excess of 40 hours per week. Overtime is paid at a rate of 1.5 times the employee's regular hourly rate.

Meal and Rest Periods
Employees are required to take meal and rest periods in accordance with federal and state laws. Meal and rest periods are not counted as time worked and are not eligible for overtime pay.

Record Keeping Employees are responsible for accurately recording all hours worked, including overtime hours, on their timesheets or other approved timekeeping system. Supervisors or managers are responsible for verifying the accuracy of timesheets and ensuring that overtime hours are properly recorded.

Payment
Overtime pay is included in the employee's regular paycheck for the pay period in which the overtime was worked.

Exceptions
Exceptions to this policy may be made in certain circumstances, such as emergencies or unforeseen business needs. Any exceptions must be approved in writing by a supervisor or manager.

This is just an example, and the specific details of an Overtime Policy may vary depending on the company's industry, size, and culture. It is important for companies to have a clearly defined policy that is communicated effectively to all employees and regularly reviewed and updated as needed to ensure continued relevance and effectiveness.