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Overtime

Overtime happens when an employee is scheduled and paid for additional hours at work. It usually includes any work done beyond 40 hours per week. Overtime is paid at a higher rate than a worker normally receives, usually their regular pay rate plus 50 percent. This is also referred to as time and a half.

There are both advantages and disadvantages to over time. The advantages include:

* Workers have the opportunity to work more and make more money, beyond the normal 40 hour work schedule.

* It provides the company with a way to get time-sensitive projects done using their current work force, eliminating the need to hire temporary workers.

The disadvantages of overtime include:

* If overtime is required, employees have to work additional hours whether they want to or not.

* If a family becomes depend on the money from regular overtime, they may find themselves in a bind if that overtime is eliminated.

* It requires that a company pays workers more than the regular hourly rate, which can put a strain on business finances.

As you can see, overtime is great for workers who need and want the money and businesses in certain situations, but can be a stressful for other workers if mandatory and costly for many businesses. Business.com is a great resource for more information on overtime.


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