Overtime Policy

Summary

This template is an overtime policy which communicates the employer's expectations regarding overtime work and pay and the employee's rights relating to overtime work. This template includes practical guidance, drafting notes, and an alternate clause. It is essential for this policy to define when employees are eligible for overtime pay. Federal law, and any applicable state and local laws, define when the employer may pay overtime; however, employers have the discretion to pay employees at an overtime rate even when not required by law. For a full listing of key content covering employee handbook considerations, see Employee Handbook Resource Kit. [>] Video. For practice quick tips on responding to claims for unpaid off-the-clock time, see Wage and Hour Claims Defense: Responding to Claims for Unpaid Off-the-Clock Time Video.