Overtime Calculation Made Easy: Step-by-Step Guide

Overtime refers to any hours worked beyond an employee’s standard workweek, which in the U.S. is typically 40 hours. Employees who work overtime must be compensated at a higher pay rate—usually 1.5 times their regular hourly wage.

Why Is Overtime Important?

Ensures fair compensation for extra work hours.
Required by the Fair Labor Standards Act (FLSA).
Protects employees and employers by enforcing labor standards.
Avoids legal penalties and fines for businesses.

Key Overtime Pay Rules

Overtime pay rate = 1.5 × regular hourly rate.
Applies to nonexempt employees (generally hourly workers and some salaried employees).
Calculations differ based on employee pay structure (hourly, salaried, fluctuating hours, multiple pay rates).
Workweek is a fixed period of 7 consecutive days; hours don’t carry over between weeks.

How to Calculate Overtime for Different Types of Employees

1. Hourly Employees (Single Pay Rate)

Calculate regular pay for the first 40 hours.
Overtime pay = hourly wage × 1.5 × overtime hours.
Example: $20/hr × 40 hours = $800 (regular pay)
Overtime pay: $20 × 1.5 = $30/hr × 5 overtime hours = $150
Total = $800 + $150 = $950

2. Hourly Employees (Multiple Pay Rates)

Calculate weighted average hourly rate:
(Total earnings ÷ Total hours worked) = regular rate.
Overtime premium = regular rate × 0.5 (since base pay is already accounted for).
Add overtime premium × overtime hours to total earnings.
Example:
30 hrs @ $10 = $300, 20 hrs @ $12 = $240 → Total $540/50 hrs = $10.80/hr
Overtime premium: $10.80 × 0.5 = $5.40
For 10 overtime hours: $5.40 × 10 = $54
Total pay = $540 + $54 = $594

3. Salaried Nonexempt Employees

Determine hourly rate: Weekly salary ÷ hours worked.
Multiply by 1.5 for overtime pay rate.
Overtime pay = hourly rate × 0.5 × overtime hours (additional pay beyond salary).
Example: $500/week ÷ 40 hrs = $12.50/hr
Overtime premium: $12.50 × 0.5 = $6.25
For 10 overtime hours: $6.25 × 10 = $62.50
Total pay = $500 + $62.50 = $562.50

4. Fluctuating Workweek Employees

Regular rate = weekly salary ÷ total hours worked.
Overtime premium = 0.5 × regular hourly rate.
Total pay = weekly salary + (overtime premium × overtime hours).
Example: $700 ÷ 35 hrs = $20/hr
Overtime premium: $20 × 0.5 = $10
10 overtime hours × $10 = $100
Total pay = $700 + $100 = $800

5. Non-Hourly/Commission-Based Employees

Calculate regular rate = total earnings ÷ total hours worked.
Overtime premium = 0.5 × regular rate.
Multiply the overtime premium by overtime hours and add to earnings.
Example: $550 ÷ 50 hrs = $11/hr
Overtime premium = $11 × 0.5 = $5.50
10 overtime hours × $5.50 = $55
Total pay = $550 + $55 = $605

Important Notes on Overtime Pay

Employers must maintain accurate records of hours worked and pay.
Overtime laws vary by state—some states require more than the federal minimum.
Bonuses, commissions, and nondiscretionary payments can affect the regular rate calculation.
Employees working over 50 or 55 hours may qualify for double time pay (twice the regular rate) in some cases.

What Happens if You Don’t Comply?

Violating overtime rules can result in:

Back pay owed to employees.
Fines and penalties.
Possible criminal prosecution in severe cases.
Civil money penalties per violation.

Advanced Insights and Compliance Guide

Overtime pay calculation may seem straightforward at first glance, but the reality is that many businesses face complex scenarios. Understanding overtime goes beyond simply multiplying hours by 1.5 times the normal wage. We dives deeper into the nuances, covering exemptions, special work arrangements, legal pitfalls, and strategic tips to effectively manage overtime pay.

1. Understanding Overtime Exemptions: Who Does Not Qualify?

While most nonexempt employees are entitled to overtime pay under the Fair Labor Standards Act (FLSA), certain categories of workers are exempt from these rules. Knowing these exemptions is crucial for employers to avoid costly mistakes.

Common Overtime Exemptions Include:

Executive, Administrative, and Professional Employees: These are salaried employees who perform specific types of job duties and meet minimum salary thresholds. For example, a manager or a professional engineer might be exempt.
Outside Sales Employees: Employees whose primary duty is making sales away from the employer’s place of business are generally exempt.
Certain Computer Professionals: Under specific salary and job duties criteria.
Highly Compensated Employees: Some employees earning a high total annual compensation may be exempt if they perform office or non-manual work.

Why Does This Matter?

Misclassifying exempt employees as nonexempt or vice versa can lead to back pay claims and legal trouble. Employers must carefully review job descriptions, duties, and compensation to correctly classify employees.

2. Calculating Overtime with Shift Differentials and Multiple Pay Rates

Many businesses pay employees different rates for different shifts or types of work. This creates a more complex overtime calculation.

What is Shift Differential?

Shift differential is extra pay given to employees who work less desirable shifts, such as nights or weekends. For example, an employee might earn $20/hr on a day shift and an extra $3/hr for night shifts.

How Does This Affect Overtime?

The regular rate of pay used to calculate overtime must include the base hourly rate plus any shift differential. So if your employee worked 30 hours on day shift ($20/hr) and 20 hours on night shift ($23/hr), you would calculate the weighted average rate like this:

Day shift pay: 30 hrs x $20 = $600
Night shift pay: 20 hrs x $23 = $460
Total pay = $1060
Total hours worked = 50
Regular hourly rate = $1060 ÷ 50 = $21.20
Overtime premium = $21.20 × 0.5 = $10.60
Overtime pay for 10 hours = $10.60 × 10 = $106
Total pay = $1060 + $106 = $1166

Multiple Pay Rates in a Workweek

For employees who work different jobs at different rates in a single week, the weighted average method ensures they are compensated fairly for overtime, factoring in all pay earned.

3. Overtime for Salaried Nonexempt Employees: Calculations and Challenges

Salaried employees often confuse employers and HR managers when it comes to overtime. While many salaried workers are exempt, some nonexempt employees receive a salary but are still eligible for overtime.

How to Calculate Overtime for Salaried Employees:

Step 1: Determine the employee’s hourly rate by dividing their weekly salary by the total hours worked.
Step 2: Multiply the hourly rate by 1.5 to get the overtime rate.
Step 3: Multiply the overtime rate by the number of overtime hours worked.
Step 4: Add the overtime pay to the weekly salary.

Example:

If an employee earns $800 per week and works 50 hours that week:

Hourly rate = $800 ÷ 50 = $16
Overtime rate = $16 × 1.5 = $24
Overtime pay = $24 × 10 hours = $240
Total weekly pay = $800 + $240 = $1040

4. Fluctuating Workweek Method: An Alternative Overtime Calculation

The fluctuating workweek (FWW) method is used by employers who pay a fixed salary regardless of the hours worked each week, which may vary. This is common in industries like healthcare or hospitality, where hours can fluctuate widely.

How Does It Work?

The employee receives a fixed salary for whatever hours worked.
The regular rate of pay is the salary divided by the actual number of hours worked.
Overtime pay is paid at half the regular hourly rate for hours worked over 40.

Example Calculation:

Salary = $700 per week
Hours worked = 50
Regular hourly rate = $700 ÷ 50 = $14
Overtime premium = $14 × 0.5 = $7
Overtime pay = 10 hours × $7 = $70
Total pay = $700 + $70 = $770

Important Considerations:

This method requires the fixed salary to be paid regardless of hours worked.
Employers must have a clear agreement with employees about the fluctuating hours and salary structure.

5. Overtime and Bonuses: How to Incorporate Non-Discretionary Payments

Bonuses, commissions, and other incentives complicate overtime calculations because they must be included in the employee’s regular rate of pay if they are non-discretionary, meaning promised or expected.

Types of Bonuses:

Non-discretionary bonuses: Tied to performance metrics, attendance, or productivity.
Discretionary bonuses: Given at the employer’s discretion, often irregular or unpredictable.

How to Calculate:

Add the non-discretionary bonus to total earnings for the workweek.
Divide by total hours worked to find the adjusted regular rate.
Calculate overtime pay using the adjusted regular rate.

Example:

If an employee worked 45 hours and earned $450 in wages plus a $50 production bonus:

Total pay = $500
Regular hourly rate = $500 ÷ 45 = $11.11
Overtime premium = $11.11 × 0.5 = $5.56
Overtime pay for 5 hours = $5.56 × 5 = $27.80
Total pay = $500 + $27.80 = $527.80

6. Special Considerations: Double Time and State-Specific Rules

Some states have overtime laws that exceed federal minimums, including double-time pay for hours worked beyond a certain threshold.

Examples:

California: Requires double-time pay for hours worked over 12 in a day and after 8 hours on the seventh consecutive day.
Alaska, Nevada, and others may have unique daily or weekly thresholds.

Double Time Explained:

Double time is typically 2 times the regular hourly rate.
Applicable in addition to overtime pay for certain extended hours.

Importance of State Compliance:

Employers must stay current with state and local laws, which can vary widely. Consult state labor departments or legal counsel to ensure compliance.

7. Payroll Best Practices for Managing Overtime

Proper overtime calculation is essential for compliance and employee satisfaction. Here are some best practices:

Accurate Timekeeping

Use reliable time tracking software or systems.
Record all hours worked, including breaks, overtime, and work performed off-site or remotely.

Clear Communication

Set clear policies on overtime eligibility and approval.
Communicate these policies transparently to employees.

Review Employee Classification

Regularly audit employee classifications (exempt vs. nonexempt).
Reclassify as necessary to comply with evolving labor laws.

Automate Calculations

Leverage payroll software with built-in overtime calculation to reduce errors.
Integrate time tracking and payroll systems for accuracy.

8. Penalties for Non-Compliance: The Cost of Getting Overtime Wrong

Failing to pay correct overtime wages can lead to serious legal and financial consequences.

Potential Consequences:

Back pay: Employers may have to pay owed wages retroactively.
Liquidated damages: Additional compensation for the employee.
Fines and penalties: Civil penalties can be thousands per violation.
Legal fees: Costly lawsuits and settlement expenses.
Criminal charges: In extreme cases, willful violations can result in fines or imprisonment.

How to Avoid Penalties:

Stay educated on FLSA and local laws.
Keep meticulous records.
Address employee concerns promptly.
Conduct regular payroll audits.

9. Frequently Asked Questions (FAQs)

Can employers require employees to work overtime?

Yes, unless restricted by contract or union agreements, employers can require overtime but must pay appropriately.

What if employees don’t report overtime hours?

Employers are responsible for ensuring all hours worked are recorded. Failure to do so can lead to liability.

Are breaks paid as overtime?

Typically, unpaid breaks (lunch, rest) are not counted as hours worked. Paid breaks count towards total hours.

How To Calculate Overtime: Practical Applications, Industry Insights, and Technology

We explored the foundations of overtime laws, exemptions, complex calculations, and compliance tips. We focus on applying these principles in real-world settings. We’ll examine industry-specific overtime scenarios, discuss time-tracking technology, explore workforce management strategies, and highlight how businesses can balance fair pay with operational efficiency.

1. Industry-Specific Overtime Challenges and Solutions

Different industries face unique overtime calculation challenges based on work schedules, pay structures, and regulatory environments. Let’s look at some common sectors and how they handle overtime.

Healthcare

Healthcare workers such as nurses and technicians often work irregular hours, including night shifts and extended shifts exceeding 12 hours.

Shift Differentials: Night, weekend, or holiday shifts often come with extra pay added to the base hourly rate.
Double Time: In some states, working beyond 12 hours in a shift can trigger double-time pay.
Fluctuating Hours: Healthcare staff may have fluctuating weekly hours, making the fluctuating workweek method a useful approach.

Best Practice: Use detailed time-tracking systems integrated with payroll to capture hours accurately and apply appropriate premiums.

Retail and Hospitality

These sectors often rely on hourly workers with varying schedules, seasonal fluctuations, and part-time employment.

Overtime Thresholds: Retail employees may work over 40 hours a week, but rarely exceed 8 hours a day. California, for example, mandates overtime after 8 hours daily.
Multiple Pay Rates: Employees might earn different rates for regular, holiday, or weekend shifts.
Tipped Employees: Special rules apply to tipped workers where employers must ensure the combined wages meet minimum wage and overtime requirements.

Best Practice: Clear scheduling policies, frequent payroll audits, and employee education can reduce errors and disputes.

Manufacturing and Construction

These industries often involve long shifts, project-based work, and safety regulations limiting hours.

Daily Overtime: Many states require daily overtime after a certain number of hours worked.
Weekend Work: Often compensated with overtime or premium pay.
Union Contracts: Collective bargaining agreements may specify different overtime rules.

Best Practice: Coordinate with union representatives and comply with contract terms while maintaining transparent payroll records.

2. Using Technology to Simplify Overtime Calculations

Manual overtime calculations can be time-consuming and error-prone. Technology solutions can streamline compliance and improve accuracy.

Time Tracking Software

Modern time-tracking tools allow employees to clock in/out via mobile apps, biometric devices, or web portals, automatically recording hours worked.

Features include real-time tracking, alerts for overtime eligibility, and integration with payroll systems.
Some platforms support complex pay rules, including shift differentials, break deductions, and varying overtime rates.

Popular Options: TSheets, Kronos, Deputy, and BambooHR.

Payroll Software with Overtime Modules

Automated payroll software can:

Calculate weighted average rates when multiple pay rates apply.
Factor in bonuses and commissions for regular rate adjustments.
Generate reports for audit and compliance.
Automatically generate pay slips reflecting overtime calculations.

Benefits: Reduces human error, saves time, ensures consistent compliance with changing laws.

Integrations and APIs

Integrate your time-tracking system with payroll and HR software to create seamless workflows.

Automated data transfer minimizes manual entry.
Real-time analytics help forecast overtime expenses.
Compliance dashboards alert management to potential violations.

3. Workforce Management Strategies to Control Overtime Costs

While paying overtime is often unavoidable, strategic workforce management can help minimize excessive overtime, controlling labor costs while ensuring productivity.

Forecasting and Scheduling

Analyze historical data to predict peak periods requiring extra hours.
Use scheduling software to optimize shift coverage and avoid unnecessary overtime.
Implement flexible staffing models such as part-time, temporary, or seasonal workers during demand spikes.

Cross-Training Employees

Cross-training employees to handle multiple roles enables better shift coverage.
Reduces reliance on overtime by filling gaps with versatile staff.

Overtime Policies and Approval Processes

Establish clear policies defining when overtime is permitted.
Require management approval before overtime hours are worked.
Monitor overtime trends regularly to identify operational inefficiencies.

Employee Wellness Considerations

Excessive overtime can lead to burnout, reduced productivity, and higher turnover.
Encourage reasonable work hours and promote work-life balance to maintain morale.

4. Handling Complex Pay Structures: Bonuses, Commissions, and Incentives

Businesses with complex compensation plans must ensure non-discretionary bonuses, commissions, and incentive payments are included in regular rate calculations for overtime.

Commission-Based Employees

Overtime must be calculated by incorporating commissions into the regular hourly rate.
Employers divide total earnings (salary + commissions) by hours worked to determine the regular rate.

Incentive Pay and Bonuses

Only non-discretionary bonuses (expected payments based on performance) affect overtime calculations.
Discretionary bonuses (sporadic gifts) generally don’t impact overtime pay.

5. International Considerations: Overtime Laws Around the World

If your business operates globally, understanding international overtime regulations is crucial, as rules vary significantly.

Europe

Most countries limit weekly working hours to 48, with overtime pay or compensatory rest required beyond that.
Rates vary; for example, Germany typically requires 25-50% more pay for overtime.

Canada

Provinces set their own rules; for example, Ontario mandates 1.5x pay for hours over 44 per week.
Some provinces also enforce daily overtime limits.

Australia

Overtime pay is often 1.5x or 2x the normal rate, with daily and weekly limits.
Modern awards and enterprise agreements may specify overtime terms.

Practical Tip:

Always consult local labor laws or experts when managing overtime in different countries to avoid penalties.

6. Case Studies: Real-World Overtime Calculation Examples

Case Study 1: Restaurant Staff with Multiple Shifts

Employee works 35 hours at $15/hr for day shifts and 15 hours at $18/hr for night shifts.
Total pay: (35 × 15) + (15 × 18) = $525 + $270 = $795
Total hours: 50
Regular hourly rate = $795 ÷ 50 = $15.90
Overtime premium = $15.90 × 0.5 = $7.95
Overtime pay for 10 hours = $7.95 × 10 = $79.50
Total pay = $795 + $79.50 = $874.50

Case Study 2: Salaried Nurse with Fluctuating Hours

Salary = $900/week
Hours worked = 55
Regular hourly rate = $900 ÷ 55 = $16.36
Overtime premium = $16.36 × 0.5 = $8.18
Overtime pay for 15 hours = $8.18 × 15 = $122.70
Total pay = $900 + $122.70 = $1022.70

7. Ensuring Fairness and Transparency with Employees

Maintaining clear communication about overtime rules helps avoid disputes and promotes trust.

Educate Employees

Provide clear written policies about overtime eligibility and calculation methods.
Train managers to consistently apply rules.

Regular Payroll Audits

Conduct periodic reviews of overtime records and payments.
Address discrepancies proactively.

Encourage Employee Feedback

Set up channels for employees to report hours and concerns.
Resolve issues quickly to maintain morale.

8. Future Trends: How Automation and AI Will Change Overtime Management

Emerging technologies are transforming how overtime is tracked and paid.

AI-Driven Scheduling

Predictive analytics forecast workload spikes to prevent excessive overtime.
Automated shift scheduling optimizes labor costs.

Blockchain for Payroll Transparency

Immutable records enhance trust and simplify audits.
Smart contracts can automate overtime payment triggers.

Biometric and Geo-Fencing

Ensure accurate location and time data for remote or mobile workers.
Reduce fraudulent overtime claims.

Common Mistakes, Legal Cases, and Best Practice Checklists

Calculating overtime correctly is critical but often complicated. Mistakes can lead to costly legal disputes, damaged employee relations, and compliance violations. We delve into frequent errors, notable court cases that shaped overtime law, and practical checklists to help employers and employees avoid pitfalls and ensure fair pay.

1. Common Overtime Calculation Mistakes and How to Avoid Them

Many overtime disputes arise from misunderstandings or errors in calculation. Let’s identify the most frequent mistakes and strategies to prevent them.

Misclassifying Employees as Exempt

Employers sometimes incorrectly classify workers as exempt from overtime to reduce costs.
Misclassification violates FLSA rules and can trigger back pay and penalties.
Solution: Regularly review job duties and pay structure against the exemption criteria. Consult HR or legal counsel.

Ignoring Non-Discretionary Bonuses and Commissions

Some employers exclude bonuses and commissions when calculating the regular rate, underpaying overtime.
This is not compliant with FLSA rules, which require inclusion of all non-discretionary earnings.
Solution: Keep detailed records of bonuses and commissions. Calculate weighted average rates properly.

Failing to Pay for All Hours Worked

Off-the-clock work, such as pre-shift preparations or post-shift clean-up, often goes unpaid.
Employees may perform tasks without clocking in or out, leading to wage violations.
Solution: Implement clear time-tracking policies. Educate employees on reporting all work hours.

Incorrectly Applying the Fluctuating Workweek Method

Some employers incorrectly apply the method by paying fixed salaries without adjusting the regular hourly rate for fluctuating hours.
This results in underpayment for overtime.
Solution: Ensure salary covers all straight-time hours, and overtime is paid at half the regular rate for extra hours.

Not Accounting for Multiple Pay Rates

When employees work different jobs with different pay rates, failing to calculate a weighted average regular rate can shortchange overtime pay.
Solution: Use proper formulas combining hours worked at each rate to determine the correct overtime rate.

Neglecting State and Local Laws

Many states or cities have overtime laws stricter than the federal FLSA.
Relying solely on federal rules can lead to non-compliance.
Solution: Stay updated on local labor laws and apply whichever standard is most favorable to the employee.

2. Notable Overtime Legal Cases and Their Impact

Understanding key legal precedents can help employers and employees grasp the stakes and how courts interpret overtime regulations.

Case 1: Integrity Staffing Solutions, Inc. v. Busk (2014)

Issue: Whether the time spent by warehouse workers waiting to undergo security screenings was compensable work time.
Ruling: The Supreme Court ruled it was not compensable as it was not an integral part of their principal activities.
Impact: Clarified that only activities integral and indispensable to principal work are compensable.

Case 2: Christopher v. SmithKline Beecham Corp. (2012)

Issue: Whether pharmaceutical sales reps qualify as exempt outside sales employees.
Ruling: The Court ruled they did, exempting them from overtime.
Impact: Narrowed the scope of exemptions, emphasizing actual sales activities over duties.

Case 3: A.H. Phillips, Inc. v. Walling (1945)

Issue: Whether meal breaks are compensable time.
Ruling: Bona fide meal periods are not compensable if the employee is relieved from duties.
Impact: Established standards on compensable breaks that employers still follow.

Case 4: State-Level Cases on Misclassification

Many states have fined companies millions for misclassifying employees as independent contractors or exempt workers.
Impact: Heightened employer diligence in job classifications.

3. Practical Checklists to Avoid Overtime Errors

Here are targeted checklists for both employers and employees to ensure overtime is calculated fairly and lawfully.

For Employers: Overtime Compliance Checklist

Review Employee Classifications: Verify exempt vs. non-exempt status regularly.
Maintain Accurate Time Records: Use reliable time-tracking systems for all hours worked.
Include All Compensation: Factor in bonuses, commissions, and non-discretionary incentives.
Apply Correct Calculations: Use weighted averages for multiple pay rates and fluctuating workweek formulas where applicable.
Understand State and Local Laws: Comply with the most employee-friendly regulations.
Train Managers: Ensure supervisors know overtime policies and approval procedures.
Audit Payroll Regularly: Detect and correct discrepancies proactively.
Communicate Policies Clearly: Provide written overtime policies to employees.
Establish Overtime Approval Process: Require prior authorization for overtime work.
Plan Workforce Needs: Use scheduling and forecasting to minimize unnecessary overtime.

For Employees: Overtime Awareness Checklist

Know Your Classification: Understand if you are exempt or non-exempt.
Track Your Hours: Keep personal records of hours worked, including breaks and off-the-clock work.
Understand Your Pay Structure: Know if you receive bonuses or commissions that affect overtime pay.
Review Pay Stubs Carefully: Check for correct hourly rates and overtime payments.
Report Discrepancies Promptly: Notify HR or management if overtime pay seems incorrect.
Learn Your Rights: Familiarize yourself with federal, state, and local overtime laws.
Request Clarification: Ask employers about overtime policies and approval processes.
Avoid Unauthorized Overtime: Only work overtime hours approved by supervisors.
Keep Communication Records: Save emails or messages regarding overtime approvals.
Seek Legal Advice if Needed: Contact labor boards or attorneys for disputes.

4. How to Handle Overtime Disputes Effectively

Despite best efforts, disputes may arise. Here are the steps to resolve overtime disagreements professionally.

For Employers

Investigate complaints thoroughly and promptly.
Correct any payroll errors quickly and compensate for owed wages.
Provide documentation explaining calculations and policies.
Consider mediation before litigation.
Keep detailed records of all communications.

For Employees

Document hours and communications carefully.
Follow company grievance procedures first.
Use state labor departments or the U.S. Department of Labor’s Wage and Hour Division as resources.
Seek legal counsel if necessary.
Avoid burning bridges; aim for constructive dialogue.

5. Best Practices for Transparent and Fair Overtime Policies

To foster trust and compliance, employers should adopt these best practices:

Written Overtime Policies: Clearly define eligibility, pay rates, and approval procedures.
Regular Training: Educate management and staff on overtime rules.
Consistent Enforcement: Apply policies fairly and uniformly.
Open Communication: Encourage questions and feedback.
Use Technology: Automate tracking and payroll to reduce errors.
Regular Policy Reviews: Update policies with evolving laws.

6. The Role of HR and Payroll Professionals in Overtime Management

HR and payroll teams are frontline defenders of overtime compliance.

Collaborate with legal advisors to interpret laws.
Design and implement tracking and payroll systems.
Train supervisors on proper documentation.
Conduct internal audits.
Serve as employee resources for overtime questions.

7. Future Outlook: Staying Ahead of Overtime Compliance

As labor laws and workplace dynamics evolve, staying proactive is essential.

Monitor legislative changes at the federal and local levels.
Adopt flexible work policies that balance employee needs and business goals.
Leverage analytics to identify overtime trends and costs.
Prepare for remote and hybrid work complexities in overtime tracking.

Conclusion

Mastering overtime calculation and compliance protects your business from costly legal risks while ensuring employees are fairly compensated for their work. Avoiding common mistakes, understanding key legal precedents, and adopting best practices are critical steps for success. Whether you are an employer or employee, the power of knowledge combined with effective tools and communication creates a workplace where overtime is managed fairly and transparently.