Overtime and how it is calculated – Everything you need to know about it

By admin / March 18, 2022


Apparently, overtime seems to be a very simple topic. As per workplace laws, when you work for more than 40 hours a week, you get paid nearly half of all the extra hours you’ve worked above the basic 40-hour working schedule. However, we live in an era of wage theft where employers are trying to gain more out of employees by making them work for longer periods of time. Keep reading to know more on whether or not overtime is a good thing to practice.

Pros and Cons of working overtime

A look at the Pros

From the perspective of the employee, when you work overtime, you get a chance to earn extra dollars. You either earn double the hourly rate or half of it. At the end of the month, you can bulk up the salary and be able to spend more on luxury items even after spending on the necessities. You can invest in emergency funds or family vacations. On the other hand, working overtime can also let you progress your career as it helps you prove yourself as a motivated and reliable employee.

From the perspective of the employer, when there are employees doing overtime, you have more hourly employees who don’t work on the basis of extra benefits in lieu of better output. There are times when seasonal overtime is required and when hourly employees might feel more honored by earning extra dollars, unlike the salaried people who fail to qualify for overtime due to busy hours. This boosts employee retention and morale, particularly when overtime is an option and communicated in advance.

A look at the Cons

From the perspective of the employee, you might feel like taking breaks and this may make you lose focus on your productivity. This will naturally increase your working hours. Based on the job, there are times when working for long hours can seem dangerous but there are several companies that control the total number of hours for which employees work. Moreover, working for a long period of time as overtime can also spoil your work-life balance.

From the perspective of the employer, the disadvantages of overtime can include higher overhead costs since your employee will most likely be paid at a much higher rate. Employers also have to plan and budget to handle overtime pay.

Should you work overtime?

While there are law firms like Hayber, McKenna & Dinsmore that help you with overtime concerns, here are a few factors to consider before deciding to work overtime.

  • Check the policy of your company

There are a few companies that have specific guidelines or restrictions on how they take into account overtime pay and whether or not they permit their staff to work for extra hours. You should review the rules and policies of your company and then decide to work overtime.

  • Make a strategy to work overtime

When you decide to work overtime, you should build a definite schedule following which you should plan your regular jobs. This will help you identify the upcoming projects that need to be completed within a set deadline. You’ll know how much time you have to complete that task. Working too much can lead to stress and hence this should be avoided.

  • Know the time you’re maximum productive

If you think you’re focused and you can complete all your tasks by early morning, try and put in those additional hours in the morning. Map out the most productive times of the day when you can stay focused on your jobs.

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