Policy Intent

 Employee Overtime PolicyPolicy IntentEmployees may be required to work overtime in case of specific or urgent projects completion. As per the existing overtime laws, our company will offer the deserved compensation for extra hours (overtime) worked. Our company overtime policy elucidates in detail how we’ll compensate our employees for their overtime hours.We’ll: Ensure employees are regularly and properly compensated for the time contributed towards their job responsibilities. Reduce events of overtime abuse, productivity loss, health and safety risks and other issues. This policy follows all the legal guidelines and relevant legislation while assigning or compensating overtime hours. ScopeThe overtime policy of our company applies to all our current employees.Policy ElementsIn this policy, “standard working hours” refers to our employees’ regular working hours. Keeping in mind the legal minimum and maximum limits, the standard working hours are already mentioned in the employment contracts. "Overtime” is defined as any amount of time contributed by an eligible non-exempt employee in addition to the standard working hours. Overtime Policy – General RulesClassification of employees as exempt or non-exempt will be done according to the state’s overtime pay laws. Non-exempt employees who work beyond the standard working hours will qualify for overtime pay.Non-exempt employees will qualify for overtime pay irrespective of their work location.Employees working evening/night shifts will receive shift differential pay/paid time off. Who are exempt and non-exempt employees?Exempt employees aren’t included in any overtime compensation for working beyond the standard working hours. Non-exempt employees may be weekly/hourly wage earners or temporary employees who, according to the state’s overtime law, are eligible for overtime wages with an enhanced pay rate.All provisions mentioned in this company overtime policy is applicable to both exempt and non-exempt employees. Frequent OvertimeOvertime may be required during urgent/heavy workload but our company overtime policy doesn’t encourage frequent overtime to safeguard employee health and well being. To ensure that there is no employee productivity or morale loss or work-related health hazards, we ensure: Overtime hours are recorded accurately and consistently.To suggest overtime only when employees have to complete urgent tasks. Provisions for all necessary facilities for employees to complete their work within the standard working hours. To adopt overtime minimizing measures whenever a decline in employee performance is observed. Weekly or daily overtime caps to prevent excessive overtime. However, employees exceeding this limit will be paid their due compensation. We won’t:Request employees to work beyond the legal maximum working hours per day/week. Exercise any discrimination against any employee regarding who has to work overtime and their compensation. Shift-Based SystemIf/when employees work on a shift-based system, we won’t:Request overtime of more than 2 hours to employees working night shifts.Permit to exceed two additional hours of overtime for employees who are on a 12 hours schedule. Allow employees working for 8-10 hours to endure more than four hours of overtime. Instruct double shifts for employees working more than eight hours. Abuse of OvertimeTo avoid any incidents of overtime abuse by our company/managers/employees that may result in legal confrontation, we don’t allow:Managers to request or encourage excessive overtime amongst team members.Employees to work overtime if/when not required. We ensure timely compensation of overtime pay at proper pay rates. Employees and managers should adhere to time tracking systems so that accurate employee overtime records are maintained. Overtime Tracking ProcedureTo accurately compensate the non-exempt employees in our company and limit unauthorized overtime hours, we’ll keep a thorough record of all non-exempt employees overtime hours. We’ll follow the below suggested procedure:Team members and managers should agree on the required overtime hours.Any employee working overtime should not exceed the legal limits.Managers should be thoroughly aware of their team members being exempt or non-exempt employees.Our finance/HR team will calculate overtime pay. All overtime pay calculations will be according to legal pay rates. All our current non-exempt employees should receive their overtime compensation on their next scheduled pay period. Any questions or queries regarding the policy should be directed towards the Human Resources (HR) department.Disclaimer: This overtime policy is intended for general guidelines and references only. The contents of the template may not include relevant local, state or federal laws and can’t be deemed as a legal document. No legal liability (if it may arise from this policy) will be assumed by either the author or Time Doctor. ................
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