Overtime

Overtime refers to time worked beyond an employee's regular scheduled hours. It is commonly used to meet peak workloads, deadlines, or emergencies. Whether overtime is mandatory or voluntary depends on labor laws, contracts, and employer policies.

Legal standards for overtime vary by country. In the United States, the Fair Labor Standards Act requires covered non-exempt employees to be paid at least 1.5 times their regular rate for hours worked over 40 in a workweek. Certain workers are exempt from overtime rules, including many professionals and managers. In other countries, rules differ by method and threshold; some impose weekly overtime pay, others enforce daily caps or allow paid time off in lieu.

Compensation methods include overtime pay at a premium, compensatory time off, or banked hours that can be used later. Some employers combine premiums with other incentives or shift differentials to attract or retain staff.

Overtime can help organizations increase output and meet deadlines, but it can also lead to fatigue, health and safety risks, reduced job satisfaction, and work-life imbalance if used excessively. The policy landscape often seeks to balance business needs with the well-being and rights of workers.

Within labor law, overtime is typically regulated through limits on weekly hours, mandatory premium pay, or collective agreements, while recognizing exemptions for certain occupations and for flexible work arrangements.