Overtime Expenses Out of Control?

Original Photo
Original Photo

Are your overtime expenses getting out of control?

Here are some pointers to help you control those costs:

1.     Know when your workweek begins and ends, e.g., 12:00am Monday and Midnight on Sunday. This will allow you to strategize, if necessary, to ensure employees aren’t working over 40 hours in that particular 168-hour period.

2.     Know when your workday begins, not just when you open. In states with daily overtime this is crucial, and should be clearly communicated to employees.

3.     Be clear that unauthorized overtime is not allowed; this notice should be made in writing, put in a conspicuous place, and regularly communicated to employees.

4.     If unauthorized overtime is worked, you must pay it, but you should counsel (or discipline) employees accordingly and make a written record of the conversation.

5.     Be prepared to take action, including termination, if an employee repeatedly works beyond their scheduled hours.


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