Global HR Glossary

What is Overtime? 

Overtime refers to any hours worked beyond the standard workweek hours as defined by employer policy or regulatory standards. Employees working overtime are typically compensated at a higher rate than their normal hourly wage.

Regulations and Compensation for Overtime

• Overtime Pay: Most jurisdictions require that employees be paid at an increased rate for overtime hours, commonly at one and a half times the regular hourly rate.

• Eligibility: Overtime rules vary by country and may depend on the sector, the nature of the job, and the employment agreement.

Proper management of overtime is crucial for compliance with labor laws and for maintaining employee morale and health. Employers must carefully track hours worked, ensure fair compensation for overtime, and manage workloads to prevent excessive overtime, thereby protecting employee well-being and aligning with legal standards.