HR MATTERS E-TIPS
THIS WEEK’S E-TIP: FLSA, Mandatory Overtime, and Alternatives
Published by Personnel Policy Service, Inc.
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THIS WEEK’S E-TIP: FLSA, Mandatory Overtime, and Alternatives

It’s generally legal to require employees to work overtime. However, to
prevent employee burnout, you may want to consider other alternatives
as well.
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THIS WEEK’S E-TIP: FLSA, Mandatory Overtime, and Alternatives

Last week’s E-Tips on the Americans with Disabilities Act (ADA) and
overtime generated questions about whether you can require overtime
under the federal Fair Labor Standards Act (FLSA). (If you missed that
E-Tips, please click here.) As a general rule, the answer is yes.

But, another question also arises about whether mandatory overtime is a
good idea as a workplace policy. Some employees find working extra
hours attractive since the FLSA and most state laws require overtime
pay at the rate of one and one-half times the regular rate for all hours
worked over 40 in a single workweek. For other employees, however,
mandatory overtime can be a heavy burden and should, therefore, be
weighed against other alternatives. Below, you will find out what legal
limits there are on mandatory overtime as well as four alternatives to
requiring overtime.

* Legalities of Requiring Overtime *

Generally, you can require employees to work as much overtime as
needed, assuming there is no collective bargaining agreement or other
contract restricting the extra hours. (Download free Hours of Work
model policy
.) The FLSA does not limit the number of hours that
nonexempt employees can work in any week and does not prohibit
requiring overtime. It only regulates how that time must be paid.

Most states also do not limit the number of hours an employee can work
(provided the employee is not a minor) or prohibit an employer from
requiring employees to work overtime. The majority simply require, as
under the FLSA, that employers pay the appropriate overtime rate for all
hours worked over 40 in a single workweek.

Note that some exemptions to this general rule apply. For example, a
few states, such as Illinois, require one day of rest a week, and Maine
limits the number of overtime hours an employee can work. Other
states, including New Jersey and West Virginia, restrict overtime hours
only for health care employees, such as nurses. And a few, such as
California, have an additional requirement of daily overtime.

You should note, too, that in rare instances, you may have to excuse an
employee from mandatory overtime as a religious accommodation or as
an accommodation under the Americans with Disabilities Act (see last
week’s E-Tips
). Similarly, you may be required by the Family
and Medical Leave Act to relieve an employee on intermittent, or
reduced schedule, leave of overtime obligations temporarily.
 
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* Four Alternatives to Overtime *

Of course, you also should keep in mind that mandatory overtime can be
disruptive and even cause hardships. Many employees have outside
obligations that overtime requirements affect, such as childcare
responsibilities and second jobs. In addition, employees can be just
plain tired of working too many hours in a week. (Download free Hours
of Work model policy
.)

To help deal with these issues, you may want to consider other solutions
to a mandatory system. For example, you can:
  1. Solicit volunteers for overtime.
  2. Rotate the overtime so that the same employees do not have to
    work extra hours every week.
  3. Transfer employees temporarily to the understaffed area.
  4. Bring in part-time or temporary employees.

If you expect the overtime to continue for a long period, you may even
find it cost effective to hire additional employees. The extra expense for
recruiting and training, payroll, and benefits for the new employees may
be less than paying overtime and incurring the related costs of burnout
and possible higher turnover.

* Give Plenty of Notice *

As a final point, if you do have to institute a mandatory overtime
requirement, make sure to explain the policy to your employees. In
particular, update handbooks and job descriptions to cover the
possibility. In addition, give affected employees as much advance notice
as possible prior to the scheduled overtime. This way, even if they do
not want the extra time, at least they will be able to plan for it.

 
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Subscribers to the Personnel Policy Manual (print/online) and HR Policy Answers on
CD can find information on overtime requirements in Hours of
Work, Chapter 207, note 18.

Not a subscriber? If you would like to order one of our policy chapters,
go to: http://www.hrpolicyanswers.com.

If you have any questions, please call us at 1-800-437-3735. We'll be happy to help you.
 
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