HR Nuggets

Overtime simply means work performed outside the normal or agreed working hours between an employee and employer. What constitutes the amount to be paid or the excess hours worked are determined by a lot of factors. It is easier to determine how much an employee’s overtime amounts to in countries or organizations where there are spelt out hourly minimum wages.
In the United States for example the normal "work period" according to Fair Labor Standard Act (FLSA) is the "work week" -- 7 consecutive days -- and the normal FLSA overtime threshold is 40 hours per work week. Some jobs might have a different FLSA overtime threshold.  In this instance therefore, any additional hours worked, outside the 40 hours per week is considered over time and must be paid for, only if the company is covered by FLSA Laws. Although this was prior to labor department new overtime rule of May 18th 2016, which according to The Fiscal Times “requires employers to pay white-collar workers overtime if they earn less than $47,476 annually, instead of less than $23,660, the case at present”.  This law however, has raised a lot of questions regarding its effects which include; increased costs to employers thereby discouraging employment; elimination flexible working time for employees; and reduced productivity and economic growth.
Similarly, under the laws of England and Wales there is no minimum statutory level of overtime pay but the average pay rate must not fall below the amount stated as the National Minimum Wage.
Nigeria Labour Law on the contrary does not provide specified minimum hourly wage, hours, days and wages of work are usually collectively determined by both employers and employees in the employment contract, so also is overtime payment.

Company’s Overtime Policy:
Most organizations are usually not specific as to how much their workforce are entitled to for an overtime work performed, this does not mean that employers do not expect workers to work for longer hours anyways. Even when organizations decide to pay for the oovertime, rates will most likely vary between different employers. For example some employers will pay extra for working on weekends or over bank/public holidays whereas other might not offer to pay anything.
Whatever the policies of a company are regarding overtime payment, it is morally right to compensate employees adequately for the jobs done, as this goes a long way to boost employees’ commitment and increase productivity.


Employees may get easily obsessed with working overtime due to some of its associated benefits like making more money or just to impress management and pave way for future promotion. For whatever reason employees get into this, it is important to evaluate the cons associated with overtime as a way of work life.

• Working late or adding additional hours could be very detrimental to your family and social life. It might be worth evaluating the amount of money one makes on overtime vis-à-vis its effect on your family life.
• Love of job vs Burnout: If one derives joy from his job, burnout effect might not be very obvious but health is important. Therefore, while you enjoy the said job and not the money that comes with it, it might be vital to pay attention to its effect on your health. Why not conduct a self-check, would you still put in more hours whether it is paid for or not? If your answer is “no” then you aren’t working out of love for your job but for the proceeds that comes forth from working overtime.
  
• Organizations that encourage overtime are exposing themselves to a lot of expenses. These expenses have to be planned, sustained and justifiable otherwise they become financial waste to the organization.
• Attention has to be paid to employees who willingly volunteer to work overtime, as some intentionally lag behind on their jobs wishing to get paid for a job that should long have been completed.

Lastly, overtime can make or mar an organization, workforce as well as productivity level. It can easily be abused but constant review of its benefits, costs as well as acceptable standards might help put all the necessary stakeholders on the right track. “What is worth doing, is worth doing well”.
What Overtime Policy is applicable in your organization? Let’s hear your views…