Overtime

Definition

Overtime refers to time worked beyond one's scheduled working hours.

Purpose

Overtime allows employers to meet increased demand for labor without hiring additional staff. It also provides employees with the opportunity to earn extra income by working additional hours.

Examples of Use

• Peak Periods: Employees working extra hours during busy seasons or peak periods to meet production deadlines.
• Project Deadlines: Workers staying late to complete a project on time.
• Emergency Situations: Staff working extended hours during emergencies or unforeseen events.

Related Terms

• Time and a Half: A common overtime pay rate where employees earn 1.5 times their regular hourly wage.
• Double Time: A higher overtime pay rate, typically 2 times the regular hourly wage, often applied to holidays or special circumstances.
• Shift Work: A work schedule where employees work in shifts to provide 24-hour coverage.

Notes

• Labor Laws: Overtime regulations vary by jurisdiction, with specific rules on eligibility, pay rates, and maximum hours.
• Work-Life Balance: While overtime can boost income, excessive overtime may affect employee well-being and work-life balance.