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Overtime Pay Policy

Example 1: Example letter for employee overtime pay policy





SUBJECT: Overtime pay policy

This memorandum is to clarify some of the issues surrounding our recently implemented overtime pay policy. First, this policy applies strictly to full-time, hourly employees. Salaried and part-time, hourly or salaried employees are not covered by the overtime pay policy.

Second, overtime is paid at one and one-half of your regularly hourly wage. For example, if you are currently at $10.00 per hour your overtime pay would be $15.00 per hour.

Third, overtime is only calculated on those hours in excess of 80 within a two-week period. For example, if you worked 30 hours the first week and 50 the second you would not receive overtime. However, if you worked 40 hours the first week and 55 the second you would receive 15 hours of overtime pay.

Fourth, a completed time card is required to accompany all overtime pay requests. This must be signed and approved by your area manager before submission to the employment office.

Example 2: Overtime pay policy letter





SUBJECT: Building up overtime hours

It is not acceptable to “build up” overtime hours for payment at a later date. Some employees have been under the impression that if they do not turn in their hours they can save them up. That is not the case. Any overtime that you have not turned in with your regular hours will not be paid.

I regret any negative impact this may have on some of you, but our policy never indicated that overtime hours could be saved up for payment at a later date.


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