Below is the  Overtime Policy Guidancetemplate body. If necessary, please put the personal information, company information, such as text to replace the specific content you need. you can download the .doc template file on the end of the article by click download link. 

OVERTIME POLICY GUIDANCE



All payments given to an employee as remuneration for employment must be included in calculating the employees regular rate, except those which [ACT] specifically says may be excluded.

Of course, if a payment is not compensation for employment, then it is not a part of the employees wages. On the other hand, if a payment is excludable by the [ACT], then it may be ignored when figuring the employees regular rate and overtime pay, even though it is remuneration for employment.

This chart is not all-inclusive. Although it is an extensive listing of payments that will be confronted in payroll computations, any other payment that is remuneration for employment and not a statutory exclusion must be considered as wages, just as any other payment which qualifies for a statutory exclusion may be eliminated from the wage category.


EMPLOYEE PAYMENTS THAT MUST BE INCLUDED IN CALCULATING REGULAR RATES

Absence pay if absence is:

for personal reasons
for Christmas shopping (unless customary in industry or area)
for visit with friend passing through town
to obtain mortgage on home


Board and lodging furnished by employer if not excluded under union contract


Bonuses for:

accuracy of work
attendance
continuation of employment relationship
production
quality of work


Commissions


Guarantees paid to pieceworkers


Housing and lodging furnished by employer if not excluded under union contract


Incentive bonuses


Lump-sum overtime pay

Contest prizes for:

attendance
cooperation
courtesy
efficiency
number of overtime hours worked
production
quality of work
sales stimulation


Lunch expenses of employee paid by employer


Meals furnished by employer if not excluded under union contract


Merchandise furnished free at company stores (food, clothing, household articles)


On-call pay


Patent payments, if employer solicited invention


Piecework earnings


Production bonuses


Rent of employees living quarters paid by employer if not excluded under union contract


Rest-period premiums (but only if they are paid more often than occasionally)


Salary increases:

current
retroactive


Shift differentials for

night shift
second shift
swing shift
third shift


Transportation, not incident of employment, furnished by employer


Traveling expenses of employee to and from work which are paid by employer


Utilities furnished by employer for employees personal use if not excluded under union contract


Wage increases:

current
retroactive


Wages for hours worked (whether productive or not), including:

commissions
day wages
hourly guarantees to pieceworkers
hourly wages
job wages
non-cash wages
piecework earnings
salaries
shift differentials


EMPLOYEE PAYMENTS THAT MAY BE EXCLUDED IN CALCULATING REGULAR RATES

Absence pay for infrequent or unpredictable absences (see also idle-time pay) caused by:

funeral of family member
holiday
jury service
sickness
vacation


Board, lodging, or other facilities excluded under union contract


Bonuses:

Christmas
discretionary with employer
percentage of total wages


Call-back pay covering idle time
Daily overtime pay of any amount for:

hours in excess of [NUMBER]
hours in excess of reasonable daily standard


Day-of-rest pay at time and one-half


Death benefits paid from welfare fund


Directors fees


Disability benefits paid from welfare fund


Disaster relief payments


Discretionary bonuses (discretionary with employer)


Expense reimbursements for:

equipment
material
tools which employer is required to furnish
travel expenses in connection with employers business
uniforms which employer requires employee to wear


Gifts


Health and welfare plan contributions by employer


Holiday pay for:

idle time if equivalent to regular earnings
time worked if at time and one-half

Hospital expenses paid from welfare fund


Idle-time pay (see also Absence pay) due to:

call-back pay & show-up pay
machinery breakdown
supplies failing to arrive
weather conditions making it impossible to work
Insurance paid from welfare fund


Loan to employee which is not deducted from wages


Locker facilities


Medical care on the job


Medical services and hospitalization required by workmens compensation laws


Parking space furnished by employer


Pension plan contributions by employer 


Percentage-of-total-wage bonuses


Post-shift pay:

at time and one-half if full shift not exceeding 8 hours is not worked
of any amount if full shift is worked


Pre-shift pay at time and one-half for shifts not exceeding 8 hours


Prize given to employee for recommending a sales prospect


Profit-sharing payments qualifying under administrative regulations

Recreational facilities furnished by employer


Rest-period premiums (but only if they are paid occasionally)


Restroom facilities


Retirement benefits paid from welfare fund


Royalties


Savings plan payments qualifying under administrative regulations


Seventh-day pay at time and one-half


Severance pay


Show-up pay covering idle time


Sick pay


Stock denoting contingent interest


Suggestion awards for suggestions that casually occur to employee and require no work


Sunday pay:

at time and one-half for Sunday work as such
of any amount if for excess daily or weekly hours


Supper money given to employee who works late


Talent fees paid to radio and television performers and announcers


Tips, if no agreement on wage status


Transportation incidental to employment


Traveling expenses of business trip by employee


Truck or car rental paid to employee for use of their conveyance


Tuition for independent schooling outside working hours


Vacation pay


Veterans subsistence allowances


Voting time pay




Weekly overtime pay of any amount for:

hours in excess of statutory straight-time workweek
hours in excess of reasonable weekly standards


Welfare fund benefits received by employee:

death benefits
disability benefits
hospitalization
medical care
retirement benefits


Welfare plan contributions by employer made irrevocably to trustee or third person to provide:

death benefits
disability benefits
hospitalization
medical care
retirement benefits


Workers compensation


OVERTIME POLICY GUIDANCE

Consider staggering work periods


Communicate your staggered workweek

If you are going to adjust overtime pay to take advantage of the offsets the law provides, make that very clear in your policy and routinely communicate that information. Unless the perception is addressed, employees may challenge the practice unnecessarily as well as feel a lack of candor on the part of their employer.


Dont treat overtime as a privilege

Your policy should stress that overtime is not a benefit C it is only to be authorized when business demands it. In no instance should overtime be authorized solely at the request of the employee or awarded as a privilege.


Dont be casual about unreported time

Prohibit in writing and enforce actively a prohibition against casual work time and unreported time. Pay for all time and discipline abusers immediately after the fact.

Dont unintentionally support unreported time

Through management development and supervisory training, aim to dispel the belief that the good employee is the one who comes in a little early or stays a little late just to help out and does not report the time.


Have a clear policy on mandatory overtime

If overtime is to be mandatory when requested, state that fact throughout the hiring process and include a statement to be signed by the employee acknowledging an understanding of the company policy regarding mandatory overtime. Even with such a policy, there may be occasions where certain mitigating circumstances, such as illness or death in the employees immediate family, can and should be exceptions. Document all exceptions to policy.


Dont fail to include on-call pay in overtime calculations

Pay for time during which an employee holds himself ready for call to work must be included in the regular-rate computation.


Dont average hours worked in two or more weeks

Each workweek must be treated as a separate unit in computing pay.


Do not negotiate side agreements with employees to avoid paying overtime

Employees cannot waive their rights to overtime compensation granted them by the federal law, except where the government supervises the voluntary payment of wages due or sues on behalf of the employees. Employees cannot agree that their overtime hours may be paid at a lower rate. Agreements to kick back overtime pay and agreements to conceal overtime hours are invalid. Even though employees have agreed to such arrangements, they can still recover the overtime pay specified in the [ACT], possibly by suing you at some point in the future.


click to download Overtime Policy Guidance template
                            

Other legal template form