Overtime Policy-[Free] Employee Policy Sample | Form, Template Doc Pdf

Overtime Policy

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Policy Intent


[Company Name] may require employees to work overtime during busy times in order to ensure that specific projects, products or assignments are completed on time.  [Company Name] is committed to providing employees with appropriate compensation for overtime hours worked, in accordance with the law.


This Policy Shall:


  1. Clarify eligibility to receive overtime pay;
  2. Outline the number hours in a regular workweek and the types and amount of overtime compensation; and
  3. Articulate the procedures employees must follow in order to be compensated for extra hours worked.


[Company Name] will do its best to ensure that employees are not required to work overtime on a regular basis.




  1. Overtime – work completed outside of regular working hours.
  2. Overtime pay – monetary or paid time off compensation for the hours non-exempt (eligible) employees work in excess of 40 hours in one workweek.



  • At [Company Name] all non-exempt employees are eligible for overtime compensation.
  • Exemptions include [specify: e.g. non-union members working in management or supervisory positions]

Policy and Procedures


At [Company Name], a regular work week consists of [35] hours worked. Overtime pay at a rate of [time and one half] will be paid for hours worked over and above [40] hours of work time in a workweek.


  • Paid leave (holiday, vacation or sick time) may not be used towards overtime.
  • Extra time worked at the employee’s discretion, or without supervisory approval (working through lunch or breaks, arriving early or staying late), may not be used towards overtime.
  • The workweek runs from [Monday morning at 12:00 am and ends at 11:59 pm on Sunday night].


Overtime compensation may also be taken in the form of paid time off if the employee and supervisor agree to this. The same rate of [one and one half] hours of paid time off will be received for each hour of over overtime worked (hours exceeding [40] hours in one workweek).


  • Paid time off work must be taken within [3] months after it was earned, unless otherwise approved by a supervisor. Supervisors may extend this period to no more than [12] months.


  1. The Approval Process


Employees are not contractually entitled to work overtime. As such, all overtime hours must be authorized by a supervisor or management in advance of overtime hours worked.


  • Employees must notify their manager/supervisor, in writing, where possible, when they anticipate that they will need to work overtime to complete the week’s assigned task.
  • Approval is required for hours that exceed [35] hours in a workweek even though overtime payments do not begin until the employee exceeds [40] hours.
  • Managers/supervisors must also provide advanced authorization, in writing, where possible, for all overtime worked by employees who report directly to them.


Employers will attempt to provide prior notification of at least (4) hours to the employee when they require an employee to work overtime hours.


  1. Abuse of Overtime


Employees who do not gain approval before working overtime hours will be written up. Subsequent offences may result in disciplinary action up to or including termination.


Supervisors who authorize overtime on a regular basis, where it should not be necessary, will [receive a warning from management and may be placed on a performance improvement plan].


Acknowledgment and Agreement

I, [Employee Name], acknowledge that I have read and understand the Overtime Policy of [Company Name]. I agree to adhere to this policy and will ensure that employees working under my direction adhere to this Policy. I understand that if I violate the rules set forth by this Policy, I may face legal, punitive, or corrective action.

Name:         ____________________________________

Signature:   ____________________________________

Date:           ____________________________________

Witness:      ____________________________________

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