Overtime

1. Overtime By Stephen

2. Overtime • Overtime is the amount of time someone works beyond normal working hours. Normal hours may be determined in several ways:

3. laws • Overtime have overtime laws designed to dissuade or prevent employers from forcing their employees to work excessively long hours. These laws may take into account other considerations than the humanitarian, such as preserving the health of workers so that they may continue to be productive, or increasing the overall level of employment in the economy. One common approach to regulating overtime is to require employers to pay workers at a higher hourly rate for overtime work. Companies may choose to pay workers higher overtime pay even if not obliged to do so by law, particularly if they believe that they face a backward bending supply curve of labour. • Overtime pay rates can cause workers to work longer hours than they would at a flat hourly rate. Overtime laws, attitudes toward overtime and hours of work vary greatly from country to country and between different economic sectors.

4. Time off in lieu • Time off in lieu; compensatory time; or comp time refers to a type of work schedule arrangement that allows (or requires) workers to take time off instead of, or in addition to, receiving overtime pay. A worker may receive overtime pay plus equal time off for each hour worked on certain agreed days, such as Bank Holidays. • In the United States, such arrangements are currently illegal for private sector workers under overtime laws, but the practice is legal in the public sector.[1]

5. Overtime • Overtime, under current overtime laws in the U.S., non-exempt workers must receive at least one and one half times their normal hourly wage for every hour worked beyond 40 hours in a work week. So, if a worker clocks 48 hours in one week, then they would receive pay equivalent to 52 hours of work (40 hours + 8 hours at 1.5 times the normal hourly wage). Comp time would permit the worker in this example to forego the 12 hours of overtime pay and instead take 12 paid hours off at some future date. • In Australia, such arrangements both in the private and public sector are common. • In some cases, particularly when employees are represented by a union, overtime may be paid at a higher rate than 1.5 times the hourly pay. In some factories for example, if workers are required to work on a Sunday, they may be paid twice their regular.

6. Working off the clock • Some employers require employees to work "off the clock" by prohibiting them from recording time actually worked; failing to compensate them for meal periods and rest breaks; failing to pay overtime for travel from shop to work-site and back; not paying overtime for time spent working while traveling; failing to pay overtime for attendance at training, meetings and lectures; failing to compensate for arriving early to perform necessary preparations for work; not paying overtime for time it takes to suit-up or put protective gear on, time waiting to log in, on-call time, or time in security line; forcing employees to work on the weekends without clocking in; or instructing them to report fewer hours than actually worked. Such practices are generally prohibited in the United States under the overtime laws for non-exempt employees.[2] • In Japan this is a widespread, almost standard work place practice and can in extreme cases lead to the Japanese Karōshi phenomenon of death-by-overwork (usually a stroke, sometimes suicide). A firm might pay 20 hours of overtime per

7. Federal overtime law • In the United States, the Fair Labor Standards Act of 1937 applies to employees in industries engaged in, or producing goods for, interstate commerce. The FLSA establishes a standard work week of 40 hours for certain kinds of workers, and mandates payment for overtime hours to those workers of one and one-half times the workers' normal rate of pay for any time worked above 40 hours. The law creates two broad categories of employees, those who are "exempt" from the regulation and those who are "non-exempt". Under the law, employers are not required to pay exempt employees overtime but must do so for non-exempt employees. Independent contractors are not considered employees and are not protected by the FLSA. Several factors determine whether a worker is an employee, who might be entitled to overtime compensation, or an independent contractor, who would not be so entitled. That an employment agreement states that a party is an independent contractor does not mean that this is necessarily so. • Classes of workers who are exempt from the regulation include

8. California overtime law • The state of California's overtime laws involve overlapping statutes, regulations, and precedents that govern the compensation of employees in California. While the governing federal law is the Fair Labor Standards Act (29 USC 201-219), California overtime law is codified in provisions of the California Labor Code and in Wage orders of the [6] Because there are two sources of applicable law (federal and state), a California employer must comply with both. • In California, based on California Labor Code 1171, only an employment relationship is required for overtime rules to apply. Under the California Industrial Welfare Commission Wage Orders, an "employer" is "any person ... who directly or indirectly, or through an agent or any other person, employs or exercises control over wages, hours, or working conditions of any person." Under the California Labor Code, an "employee" is "[any] person, including aliens and minors, rendering actual service in any business for an employer, whether gratuitously or for wages or pay, whether the wages or pay are measured by the standard of time, piece, task, commission, or other method of calculation, and whether the service is rendered on a commission, concessionaire, or other basis." Independent.

9. California overtime law • In California, based on California Labor Code 1171, only an employment relationship is required for overtime rules to apply. Under the California Industrial Welfare Commission Wage Orders, an "employer" is "any person ... who directly or indirectly, or through an agent or any other person, employs or exercises control over wages, hours, or working conditions of any person." Under the California Labor Code, an "employee" is "[any] person, including aliens and minors, rendering actual service in any business for an employer, whether gratuitously or for wages or pay, whether the wages or pay are measured by the standard of time, piece, task, commission, or other method of calculation, and whether the service is rendered on a commission, concessionaire, or other basis." Independent contractors are not employees covered by overtime laws, so it is important to determine if a worker is an independent contractor or an employee.

10. Exemptions: • The conditions attached to the worker's individual consent are tightened by the proposed new directive: member states may allow workers to opt out from the limitation of hours worked so long as this is expressly allowed under a collective agreement (e.g., with a trade union), and if the individual worker consents. The individual's consent is subject to conditions

11. Exemptions • It is valid for a maximum of one year (renewable) • No worker can work more than 65 hours in any week