Sometimes there isn’t enough time in the regular work week to get everything done. You may have a sudden influx of extra work, or turnover/employee vacations may mean you are short staffed. When this happens, you may need your employees to work longer hours, which means you may need to compensate them for their extra time with overtime pay.
Not All Employees Qualify for Overtime
You are not required to pay salaried employees overtime. They may be expected to work as long as necessary to get the job done without extra pay, and this should be made clear during the hiring process.
Overtime Applies After 40 Worked Hours per Week
Overtime applies to the hours worked in a given week, and to qualify, employees must work more than 40 hours in a week. Just because an employee works two extra hours one day, they don’t necessarily get overtime pay if they still only work 40 hours that week. Similarly, if an employee works on a Saturday, but their normal hours are Monday through Friday, they don’t automatically get overtime, unless they worked more than 40 hours that week.
The workweek can be set by your company, it doesn’t necessarily mean Sunday through Saturday.
You Must Pay Overtime Rates
Another important fact to remember about overtime is that you aren’t just paying the hourly rate. For every hour worked over 40 hours, you must pay the worker at least one and a half times their normal hourly wage. This increases the costs for you because, not only are you paying the employee for more hours, but you must pay them at a higher rate.
Nobody likes working more hours than they are supposed to, but everyone likes getting more money. Overtime is a great incentive to urge your employees to work a little extra when needed. It may cost you a little more, but it’s nothing compared to the expense of hiring and training a temporary employee to do a small amount of additional work.
Take a peak at AssociationVoice’s Property Management Organization options to tasks and ensure proper compensation.