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What is Overtime?

Mary McMahon
Mary McMahon
Mary McMahon
Mary McMahon

Overtime is a term used to describe hours worked over a legal limit or in excess of convention. In many nations, employees may not work more than 40 hours in a week or eight hours in a day. Overtime hours must be compensated at a different rate, acknowledging that overtime puts additional strain and stress on an employee. Conversationally, “overtime” may refer both to these overtime hours and to the additional compensation. Typically, this compensation is time and a half pay, although in some areas it may be double time.

People who work full time jobs are often at risk of accruing overtime hours because any small deviation from their schedule can cause them to run over. For example, if someone needs to come in early for a conference call with a different time zone, or stay late to finish something, he or she will run into overtime over the course of the week without an schedule adjustment such as a long lunch.

Overtime is often defined as work that exceeds 40 hours in a week.
Overtime is often defined as work that exceeds 40 hours in a week.

Many companies try to avoid running their employees into overtime because of the additional compensation which is required. This may be accomplished by not compensating workers for breaks and lunches, or by closely monitoring employee schedules. Because overtime requires additional pay, and employee usually must request permission to run into overtime, or the employee may be reprimanded for not keeping better track of his or her hours. In some instances where additional work is obviously needed, employees may have an agreement which allows them overtime hours during periods of demand, such as the weeks leading up to a major product release..

Creating a more flexible schedule for employees with families can help reduce overtime in a business.
Creating a more flexible schedule for employees with families can help reduce overtime in a business.

Because the rights of workers are a major issue in many nations, most countries have strict laws about overtime. An employee must be compensated at a higher rate for overtime hours, for example, and employees cannot be fired or disciplined for refusing to work overtime hours. Arrangements such as giving employees paid time off in lieu of overtime are not uncommon, but they are also usually illegal. If an employer asks you to do this, you may politely decline.

Overtime can be caused by mismanagement of time and scheduling of employees.
Overtime can be caused by mismanagement of time and scheduling of employees.

In some very specific sectors and under certain circumstances, an employee may work more than the conventional number of hours without receiving overtime pay. These types of arrangements are most common in the technology sector, where developers may work 10 or 12 hour days at the normal pay rate. This practice has been criticized by some people, as work loads of this type are immensely stressful and hard on the employee. Although industry convention may accept these arrangements as reasonable, they are considered by many to be somewhat inhumane.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a WiseGEEK researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Learn more...
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a WiseGEEK researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Learn more...

Discussion Comments

anon47749

anon28607: yes you are.

anon28607

I am a 1099 employee for a company and am working typically more than 40 hrs a week. Am I entitled to overtime pay?

anon11680

Can overtime be more than the salary? If yes then how and if no then why?

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    • Overtime is often defined as work that exceeds 40 hours in a week.
      By: WavebreakmediaMicro
      Overtime is often defined as work that exceeds 40 hours in a week.
    • Creating a more flexible schedule for employees with families can help reduce overtime in a business.
      By: JohnKwan
      Creating a more flexible schedule for employees with families can help reduce overtime in a business.
    • Overtime can be caused by mismanagement of time and scheduling of employees.
      By: jedi-master
      Overtime can be caused by mismanagement of time and scheduling of employees.
    • Working long hours may contribute to feelings of burnout.
      By: V&P Photo Studio
      Working long hours may contribute to feelings of burnout.