HR Glossary


Updated on:
August 22, 2022


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Table of Content

What is Overtime? 

Overtime is any regular working period or period of time that occurs after an employee’s scheduled shift and before the scheduled shift the next day.

Overtime involves working additional hours on top of an employee’s regularly scheduled shift. Overtime hours are generally paid for at premium pay rates. Overtime is commonly viewed as a way to compensate employees for working additional hours outside of their normal scheduled shift. Overtime is offered to employees who receive work that is irregular, unusual, or unexpected.

Who Is Exempt and Nonexempt from Overtime Pay?

 The Fair Labor Standards Act (FLSA), as amended by the 1998 amendments to the law, establishes the standards for determining who is exempt from overtime pay. In addition, the regulations provide rules for determining when an employee is entitled to overtime pay.

The FLSA exempt status depends on an employee’s salary, salary basis, and the duties he or she performs. The purpose of the exemptions is to prevent employees from being deprived of overtime pay, usually on a weekly or bi-weekly basis.

A salaried employee is an employee whose compensation is paid as a regular salary (usually weekly or bi-weekly) without regard to the number of hours the employee actually works.

What are Consider overtime and non Consider? 

Non consider overtime is the time worked beyond the standard forty hour week that is not considered overtime work.

Overtime refers to time worked beyond the standard forty-hour week. Overtime compensation is paid to employees for working more than forty hours per week. Overtime pay must be granted under state and federal laws and based on the specific workers' classification, including the duties they perform.

Employers can pay employees overtime compensation for any overtime hours worked, but if they choose not to, they must pay the employee one and one-half times their regular hourly rate, plus any additional wages due under the Fair Labor Standards Act, including overtime pay for hours worked over forty per week.

Why are overtime hours necessary for employees to work? 

There are a number of reasons why employers may require their employees to work overtime. In some cases, it may be due to an increase in demand for the company's products or services. In other cases, completing a project on time may be necessary. Whatever the reason, overtime hours can be beneficial for both the employer and the employee.