What Is Overtime and How To Calculate It?

For companies, overtime is a serious consideration, given its financial implications on the bottom line. If your workforce is limited and you have to manage overtime for a few workers, it can usually be done using a paper system. But as the company grows or you expand to several locations or countries, it becomes complex to comply with overtime laws. There are several factors to consider, and you need proper tools to record and calculate overtime. This article explores what overtime is and how to calculate overtime easily.

What is overtime?

Overtime pay is the wage paid to employees who work more than 40 hours a week. The federal overtime law entitles workers working more than 40 hours a week should get paid more than their regular base pay. As per Indian Labor laws, employers are required to pay double the normal wage rate for the number of extra hours a worker puts in at the workplace. In the United States, Federal overtime laws mandate that employees who work more than 40 hours in the week should be paid at least time and a half for the overtime hours. For example, if a worker’s regular wage is $20 an hour, they must be paid $30 for each hour of overtime they put in. Overtime is essential in the American workforce law enforced by the U.S. Department of Labor’s Fair Labor Standards Act (FLSA). Previously, the overtime law was that an employee was not entitled to extra pay until they had worked 44 hours a week, but later on, it was amended to a 40-hour workweek. Overtime is a valuable strategy for employers and employees. It allows companies to meet the increased production demand with the same number of workers without hiring contractual staff. On the other hand, the workers can make an additional income by putting in more hours at their convenience. That being said, for any company, it is essential to check overtime expenses because it has profound economic implications. The overtime calculation is a complex process that requires accurate timekeeping of the number of extra hours. Managers are responsible for accurately calculating overtime pay and ensuring that their overtime policies comply with state and local labor laws. Let’s find out how to calculate overtime accurately.

How to calculate overtime pay?

To calculate a worker’s overtime pay, you must accurately determine their overtime hours and usual hourly wage. These are the two inputs that we use for further calculation.

1. Single hourly rate

The simplest way to calculate overtime pay is the single hourly rate. Suppose a worker gets paid $10 an hour and works 60 hours per week. Given the standard of 40 hours work week, they work 20 hours overtime. Their overtime pay will be calculated as follows: $10 x 1.5 (overtime rate) x 20 hours of overtime = $300 Total pay: $400 + $300 = $700

2. Multiple hourly rates

Let’s assume that an employee does two jobs in your company that pay him different hourly pay rates. The first one pays them at an hourly rate of $ 25 for 20 hours per week, and the second job pays them $ 15 hourly for 30 hours per week. In this scenario, their regular wage rate for the week will be the average of the two pays. The overtime will be calculated as follows: Average weekly pay: $25 x 20 hours + $15 x 30 hours = $950 $950/50 hours = $19 Overtime pay: $19 x 1.5 (overtime rate) x 10 hours of overtime = $285 Total Pay: $950 + $285 = $1235 (total)

3. Daily rate

If an employee is paid $100 a day for five days a week for 50 hours, then to calculate their regular rates, we need to divide the weekly income by the number of hours. Here’s how the overtime is calculated in this case: $100 x 5 = $500 $500/50 hours = $10 (regular rate) $10 x 1.5 (overtime rate) x 10 hours (overtime) = $150 Total pay: $500 + $150 = $650

4. Piece rate

The piece rate overtime calculation is used by the companies that pay workers for every product unit. Suppose a worker at a mobile phone assembly unit is paid $1.50 for each phone completed. If they meet 500 phones in a standard 40-hour workweek, their pay will be: Five hundred phones × $1.50 piece rate=$750 If the same worker puts in an additional 10 hours and produces another hundred phones, then his overtime pay will be calculated as follows: Average week pay: $750/40 hours = $18.75 Overtime pay: 10 hours × $18.75 = $187.50

How to automate overtime calculation?

Now that you understand what is considered overtime and how it is calculated, you should consider tools that can automate overtime calculation. Several employee time and attendance tracking software are available that feature overtime calculation. Truein is one such software for employee time tracking that is already adopted by hundreds of companies globally for accurate overtime calculation. Truein is a cloud-based, face-recognition employee time-tracking system with an inbuilt overtime feature. This hardware-less attendance system can track and calculate overtime automatically without any intervention from the managers or supervisors. It also features additional capabilities like leave management, shift scheduling, overtime policy management, and automatic report generation. It can be deployed as an app on workers’ smartphones to record overtime hours easily. Geofencing and GPS-tracking are included features that allow manufacturing, construction, and mining companies to optimally track the overtime of workers employed at a remote site.

Conclusion

Overtime calculation and payment are essential for any business. Failing to pay overtime accurately makes your business susceptible to lawsuits from current and former workers. It can also put you on the wrong side of the law. For instance, any company failing to comply with the FLSA’s overtime rules can pay 200% more than overtime in the first place. This is why you must use automated software tools like Truein that manage overtime efficiently to ensure that your employees are paid accurately every time.
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How To Reduce Your Employee’s Overtime?

Overtime is a problem for both companies and workers. It often feels like the only option you have to meet productivity demands, but it comes at a high price. Several studies provide clear evidence that overtime is counterproductive. One study found that a 10% increase in overtime can reduce productivity by 2.4%.

The little boost you get by burning the 'midnight oil' is at the cost of the energy of the workers, which affects their overall work routine. It is not to say that you cannot schedule occasional overtime to meet a deadline. Just if the company has a sustained reliance on expensive employee overtime, it is a reflection of poor management.

In this article, we will explore how to reduce employee overtime strategically. We share some tips that can help you deal with overtime.

Six tips to reduce employee overtime

1. Take meetings when only required

Team meetings are helpful but not always the best use of your workers' time. When sitting in a meeting room, employees often lose a chunk of their time when they have only a few minutes of project updates to share. The rest of their time is spent on their phones. For the blue-collar workforce, it means not calling them for meetings often from the production floor. This wasted time is better utilized in accomplishing real work. Your company should adopt innovative ways to consider project updates instead of meetings. Digital work management and task management tools like Asana and Jira are best for automated communication between employees and management.

2. Your employees must have proper tools and training

Reducing overtime is more about maximizing the output of regular employee hours. The rule here is to work smarter, not longer. Surprisingly, an average worker spends more than a quarter of their day just reading and answering emails at work. It is just one example; several similar day-to-day tasks occupy your team's time. You have to ensure that your workers are performing their duties correctly. Email automation allows you to respond instantly to customer queries instead of mailing them one by one. For employee training and onboarding, you can also use self-paced programs so that workers can learn at their pace and get better at their jobs. For manufacturing and construction industry it requires replacing manual tools with automated devices such as replacing hammers and forging tools with power tools.

Most companies do not know how to decrease overtime, and they keep looking for better and more significant ways when small things can add up and reduce overtime. To maximize productivity within the available work hours, you must ensure that your workers have the tools to do the best work. If workers spend their time troubleshooting old equipment, it leads to poor efficiency; so you need to provide them with new tools.

3. Create an overtime policy

As a manager, you can quickly moderate the overtime the workers put in by clearly specifying the policies that ensure work-life balance. Some of the most successful companies offer great benefits like flexible work schedules, remote working, and unlimited paid time off to give their employees greater control over where and when they work. In the absence of an overtime policy, employees are not sure what the company's stance is about overtime. This usually defaults to a workaholic mindset where workers assume that working longer hours with getting them promotions and better compensation. You have to ensure that workers do not develop such a mindset.

4. Allow flexible work schedules

In a post-pandemic era, it is clear that work-life balance is most important for workers. Flexible work schedules allow employees to attend to critical personal duties like kids, aged parents, or illness. Flexibility in work schedules will enable them to take care of their responsibilities without taking offs or working overtime.

5. Cap overtime hours

There are no federal limitations on how much overtime a worker can work. While there is no legal framework, employers are within their rights to cap overtime hours. Overtime might be inevitable, but it doesn't have to stress the labor costs to the extent that it starts eating up profits.

A comprehensive overtime policy can determine the workers' week, month, and even annual overtime hours. You can keep the policy flexible to have room for extra hours in case an employee is required to work more overtime. Capping overtime is the best way to ensure that work gets distributed more evenly amongst the workers so everyone can work overtime hours.

6. Use time-tracking software to track overtime

Once you have a constructive overtime policy, you can use automated employee time and attendance tracking software like Truein to ensure all policy guidelines are followed.

Truein is a cloud-based face recognition attendance system that also features automatic overtime calculation. It is a hardwareless software that can be deployed directly on smartphones to start recording attendance and overtime.

Conclusion

Overtime management is essential to reduce labor costs. We hope the tips listed here will help you reduce overtime and increase productivity within the workforce.

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Why and How To Reduce Overtime In The Manufacturing Industry?

The manufacturing industry is one of the largest employers in India. More than 22 million workers are employed by manufacturing businesses. With such a large workforce, delegating work and keeping operations smooth would be easier. But, the manufacturing sector in the country suffers due to overtime issues. Overtime in the manufacturing industry is a problem for companies and workers. Once overtime was seen as a way to improve productivity, but now it is considered one of the most significant stress sources that lead to poor work-life balance. This article will discuss how to reduce overtime in manufacturing without affecting output. We will list some strategies to overcome the issue. But first, let's find out why overtime can be counterproductive.

Why should organizations try to reduce overtime?

Overtime is the number of hours employees work that exceed their regular hours. Companies and HR managers often overlook the dangers of overtime. But, when observed closely, it is startling how costly overtime issues can be. Not only can it adversely affect the company's bottom line, but it can have side effects on the workers.

1. Financial Impact

The financial burden for the company to compensate overtime can be a significant undertaking. According to the labor laws in the country, employees must be remunerated at twice the rate of their regular working hours. While some employees might need to work overtime for extra income, others use overtime rates to work unnecessarily to be compensated above their average wage rate. For a company paying employees overtime rates for work that can be accommodated during the regular shift hour is a pitfall that can profoundly affect its bottom line.

2. Impact on performance

A more visceral effect of overtime on workers is the reduced performance. In this whitepaper, J. Nevison clearly illustrates that over time can negatively affect performance. He suggests that there is little productive work done when workers need to work over and above 50 hours per week. Two other supporting studies found the whitepaper valid and showed that workforce productivity drops by an additional 10 hours with an increase of 4 to 12 hours in their work shifts. Overworked employees are less focused on their jobs and feel alienated in the workplace. It also has an impact on their morale making them more susceptible to performance issues. Companies must be aware of the financial liability of such a decline in productivity.

3. Precursor of health problems

While financial and productivity impacts can be managed, the harmful effects of overtime on workers' health are even more severe. Countless studies link overtime or overwork to health issues. It leads to poor work-life balance that also affects personal relationships. According to one study, workers who worked three or more hours longer than the usual shift (7 hours a day) are at a 60% higher risk of heart and cardiovascular health issues. Other health issues are associated with overtime, such as high blood pressure, increased stress, anxiety, lower back problems, alcoholism, and addiction issues. All these issues bring productivity lapses in the workforce, leading to higher absenteeism rates.

6 Ways to reduce overtime in the manufacturing industry

When you identify the causes of overtime in your company, it is essential to resolve them as soon as possible. Furthermore, if your company doesn't experience regular overtime hours, you should still have measures to avoid overtime. Here are some ways using which manufacturing companies can reduce overtime.

1. Make sure your team has the right tool, equipment, and resources to complete the work on time

To reduce overtime, you have to make all the right tools and resources available that allow the most efficient use of employee hours. Allow workers to work smarter, not longer. There are a lot many manual and administrative tasks that can be automated to free human resources. People working behind the desk often spend more than one-fourth of their day reading and responding to emails alone. How can you expect to reduce overtime if the monotonous, day-to-day task consumes a quarter of workers' shift time? It is why it is necessary to automate such tasks to allow workers to focus on more productive tasks that add value to the company and boost productivity. You can use tools like Asana and Jira for project planning and team collaboration. Manual attendance keeping and leave management is one task that takes much time for the HR team to manage. With the availability of attendance systems like Truein, recording and managing attendance can be automated. It has several benefits for both employees and HR managers. Truein integrates with payroll software, so it is easy to track attendance and overtime to pay only for the hours a worker worked. As an automated face-recognition system, workers cannot trick Truein with time theft. These are little adjustments at the outset but can go a long way to reduce overtime. When you free up human resources, they invest most of their time on actual responsibilities.

2. Create an overtime policy

Just verbal overtime instructions will not help curb overtime. It would be best if you had a well-thought overtime policy to communicate company expectations to the workers. An official overtime policy explains all the aspects of working overtime. It details how employees will be compensated for overtime hours. Discuss with the HR managers how to reduce overtime in manufacturing by implementing an overtime policy. When preparing the overtime policy, clarify who will approve the overtime hours, manage shifts, and how much say the employees have in the matter. Just creating an overtime policy won't be enough; you must ensure that all employees and managers have access to the overtime policy. Truein can help with it as well. HR managers can create and implement overtime policy from the dashboard, and employees can access the procedure on their smartphones. An official overtime policy leaves little scope for misunderstanding and lays strict ground rules for employees. It ensures workers are not exploiting overtime.

3. Cross-train your employees

In the manufacturing industry, it is possible to cross-train employees. For instance, having all the floor workers trained in handling CNC machines can save you money. Rather than scheduling overtime or hiring additional staff, you can pull workers from other departments to work on CNC machines during busy periods. Cross-training employees can significantly benefit your company's bottom line. It helps make schedules much more efficient and ensures workers are not working excessive overtime. You have to ensure there is no staff shortage in a department; if there is, cross-train other workers to pick up the slack instead of staff working overtime.

4. Allow flexible work schedules

It is a myth that the 9-5 work hours are the best for productivity. Many workers report that working from home is more productive than working in an office. For the manufacturing industry, it is a challenge as most of the workforce needs to be present on-site to keep the production optimal. While the administrative staff, to an extent, can be allowed to work from home, most of the workers need to be present in the office. You can have more flexible work schedules for workers to enable them to work shifts that are adjusted to the most productive hours. Employees with flexible schedules can focus more, improving their productivity and reducing the chances of overtime.

5. Allow overtime only when required

While there are rules on how workers must get compensation for the overtime hours, there is no cap on how many hours employees can work for overtime. You must have policies that explicitly explain how many hours an employee can work overtime. As an employer, you have the authority to set overtime rules freely. It would help if you allowed overtime only when it is required. Determine a weekly, monthly, or annual cap of overtime hours your business can afford. This will help you decide the scope of overtime employees can work when needed, ensuring that it does not become a norm. It will also help distribute work evenly amongst workers such that all employees have an equal chance of working overtime hours for extra pay.

6. Schedule shifts

Employee shift scheduling must help to reduce overtime, not increase it. It is essential to ensure that your HR team is preparing employee schedules that are organized, managed, and updated regularly. It will allow your organization to accurately match staffing levels to the work demand and eliminate any requirement for overtime. Truein can help you organize staff according to the need to distribute work and make schedules that accommodate work demands without overtime. If your company still relies on manual sheets or Excel to manage shifts and overtime, you will benefit by switching to Truein, which completely automates scheduling and attendance management. It allows managers and supervisors to keep track of employees to ensure they are working their shifts.

Conclusion

Overtime can be one of the biggest profit-killers for a manufacturing company. It is essential to reduce overtime to remain profitable and avoid adverse effects on employees' health and productivity. We hope this article will provide you with all the insights you need on reducing overtime in manufacturing. Truein has been helping some of the biggest manufacturing companies in the country reduce unnecessary overtime. Our comprehensive time and attendance management system also offers employee scheduling features. With Truein’s attendance system for the manufacturing industry, you can refine your company's scheduling process and optimize the workforce for maximum productivity without overtime.
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How To Manage Overtime In The Construction Industry?

The Indian construction industry is a major player contributing to the economy's growth. At the center of the focus of the government's initiatives to create world-class infrastructure in a time-bound manner, the construction industry is poised to receive investments of up to $1.4 trillion by 2025.

Without a doubt, the construction industry is crucial to driving the country's growth, but it needs some reforms too. The industry is the second-largest employer, with over 51 million workers. Furthermore, the construction industry created 45 million additional jobs directly or indirectly. It is easy to anticipate that there certainly will be management challenges with such a large workforce.

In this article, we will focus on overtime in the construction industry. We will take a look at the challenges and available solutions.

What are the construction industry overtime rules?

As the construction industry primarily has a workforce working at sites, time management is a complicated task to achieve. Keeping track of workers is a gigantic task.

It is important to understand what laws govern and protect workers' rights in the context of overtime. Here are the essential labor laws an employer must be aware of.

ActProvisions under the Act
Factories Act, 1948 Sec. 51, 54 to 56 & 59 of the Act include overtime wages.Under section 59 of the Factories Act, it is clearly instructed that a worker who works for more than 9 hours any day or for more than 48 hours in a week will be entitled to receive wages in respect to overtime work at the rate of twice his/her ordinary rate of wages.
Minimum Wages Act, 1948It also applied to construction workers. According to section 33 of the Minimum Wages Act, overtime wages must be twice the rate of the ordinary wages of the worker. Sec. 14 of the Act states that for workers, if the minimum rate of wages is fixed by the time period, such as by the hour, by the day, or by any such period, and if any worker works more than that number of hours, it will be considered overtime.
Contract Labour (Regulation & Abolition) Act, 1970As per Rule 79 of the Act pertains to the law regarding overtime calculation for contract workers. According to the act, every contractor must maintain a Register of Overtime in Form XXIII. All important details like the employee's name, overtime calculation, hours of extra work, etc., must be recorded in the register.
Building and Other Construction Workers (Regulation of Employment Service) Act, 1996Under Section 28 & 29 of the Act, it is mentioned that construction workers who work overtime as per the regulations mentioned above must be remunerated at the rate of twice the ordinary rate of wages.

Companies struggling with managing overtime for construction workers can end up with losses. As the law requires to pay twice the ordinary wage rate, overtime can have substantial financial liabilities. Let's explore some measures to control overtime in the construction industry.

6 Tips to manage overtime in the construction industry?

1. Identify the issue

If unexplained overtime is reported in the company, it is essential to know why it is happening before resolving the issue. Overtime construction can result from several problems such as heavy project loads, poor time management, and staffing shortage. These are some of the issues on the management site. Audit the HR and managers' logs to understand the staffing and work distribution. It is also not uncommon in the construction industry to find employees working overtime for the extra pay.

You have to get a clear idea of the issues to decide how to manage overtime for construction workers.

2. Be aware of local overtime laws

The central government of India implements the labor laws we have listed above, but there are specific local labor laws that a company must be aware of.

For example, Maharashtra has tweaked the local labor law to allow longer working hours and overtime periods for workers. As per the rule, "With the exemption from Sections 51,52, 54, and 56, employers can allow labourers to work in two shifts of 12 hours each."

3. Track work hours with GPS construction time tracking software

As mentioned above, tracking employees' working hours is a significant challenge in the construction industry. Field workers are away from CCTVs, so there is no sure way to know if they are working or not.

Using GPS-enabled attendance systems, you can overcome this challenge. Truein is a face recognition attendance system with geofencing and GPS tracking features. It can be used to record overtime for construction workers through the app on their smartphones.

4. Cross-train employees

The skill gap is a problem that increases over time in the construction industry. If you do not have the workers with the required skills, it can slow down productivity. Also, if the company is understaffed, project tasks can take longer to complete. The solution lies in cross-training employees to take up multiple roles if there is demand.

5. Hire contractors

Building on the above issue, if the overtime construction does not seem to stop even after cross-training workers because of staff shortage, you need to hire contractors. Hiring an independent contractor workforce can compensate for the deficit, and the overtime can be eliminated.

6. Improve work allocation and management

If the HR managers regularly cram overtime at the end of projects, it indicates poor time management. When you fail to anticipate the project's timeline or resources, which will be required at the initial stages, the task becomes hard to manage as the deadline arrives.

The managers must spread out hours from the beginning of the project so that no overtime occurs later.

Conclusion

Unmanaged overtime in the construction industry can be a real nuisance. It can create revenue overheads that reduce the profits, but more importantly, it can take a toll on employee productivity and health. With efficient employee tracking software for construction idustry like Truein, unnecessary overtime can be eliminated and boost the company's efficiency.

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Employee Overtime Policy: How to Draft A Strategic and Encouraging Policy?

Some of the world's most successful companies have favorable employee policies. Among these rules, the overtime policy is a crucial aspect. Surprisingly, many employers are oblivious to employee rights and labor laws governing the overtime policy.

Most common is the private sector, employees often work overtime past their working hours to achieve the company's target and increase productivity. As a competitive corporate and business environment demands hard work from the workforce, companies must not overlook the need for a well-structured overtime policy.

Understanding the overtime hours

Overtime is the period for which employees work after their regular working hours. In India, legally, an employee can be subject to 8-9 working hours a day, that's 48-50 hours a week.

As per the overtime policy in India, any employee working for more than the established working hours must receive the remuneration for the period worked beyond the mandatory working hours. Companies must have an overtime policy in place to set ground rules.

Why does your company need an overtime policy?

As part of employee-friendly work culture, companies must clearly define the overtime policy and procedure to help employees know whether working overtime is optional, mandatory, limited, or prohibited.

It would help if you outlined the policies to address how you handle overtime hours. In India, the remuneration for overtime hours is 200% (twice the regular hourly rate), implying high costs. For full-time and contract workers, overtime policy differs. Usually, contract workers are not paid overtime. An overtime policy is essential to address how the company handles overtime hours for exempt and nonexempt employees.

How to draft an overtime policy?

Your employees must be aware of the overtime management policy at the company. It will provide them with all the essential reference points if they have any questions about the company's overtime procedures or management policies.

The overtime policy must clearly explain the employee overtime rules and procedures. There should be no ambiguity in the terms and conditions. Any comprehensive overtime policy must have the following information:

Who are exempt employees are and who are non-exempt employees?

Exempt employees are those who do not receive overtime pay, nor do they qualify for minimum wage. Exempt primarily means employees who are exempt from receiving overtime pay. Nonexempt employees are entitled to receive federal minimum wage and qualify for overtime.

What are the essential working hours?

In principle, essential working hours must not exceed 40 hours per week or eight hours per day, excluding breaks for US employees. As per the UAE Labour Law, private sector working hours are 8 hours per day or 48 hours per week and according to the Factories Act 1948, in India employees cannot work for 48 hours a week or nine hours per day.

The Indian state of Maharashtra has amended Section 65(2) of the Factories Act 1948. Under this amendment seeking the state's permission before giving overtime to workers is no longer compulsory. Furthermore, the management can extend overtime hours as they deem fit.

Whether overtime is optional, mandatory, or prohibited

You can make overtime mandatory, optional, or ban it entirely, depending on your business. If your company has hectic weeks when the demand to deliver is high, you can set up weeks with mandatory overtime hours. Some businesses do not need employees working overtime, but they don't ban it and make it optional. In some scenarios, overtime costs can be too high, prompting employers to prohibit it.

What are the overtime limitations, if any?

Altogether banning employees from working overtime can be counterproductive. To reduce cost, you can put limitations.
For example, you can specify how many hours an employee can work overtime a week. It will help you control the cost.

Procedures to follow for working overtime

Do employees need permission to work overtime? If so, how can they request to work overtime? How can employees report overtime?
These are some examples of procedures to include in your overtime policy draft.

How much is the overtime pay?

While overtime pay is generally 1.5-2x times an employee's normal salary per hour, you can also choose to reward salaried employees working extra hours with additional perks.

How is overtime paid?

Will the overtime pay be included in regular wages, or will the company run a separate payroll for overtime hours?
It must be answered in the policy.

Disclaimer specific to the company, outside the applicable labor laws

Depending on the type of industry, companies can have specific disclaimers on how they handle events during overtime hours like food privileges, traveling allowance, etc.

These are the general guidelines to help you draft an overtime policy for a company. A viable employee overtime policy must include all the elements listed above and applicable rules and procedures depending on the industry and the local law.

Accurate overtime tracking is a must

Tracking overtime hours is not only a legal requirement, but it also makes your company a better place to work. When you are tracking over time, you can better manage team resources and adjust workloads to ensure the well-being of the employees. For companies, accurate overtime tracking is the only way to compensate employees for their overtime hours.

As employees and employers have rights and entitlements in the context of overtime policy and procedure, accurately tracking overtime is in the interests of both.

Before the pandemic struck, an average employee worked a little over four hours of overtime, and 59% of the distributed workforce worked overtime at least a week. As the crisis unfolded, these numbers increased substantially. Recent research found that one in four public healthcare managers worked more than 20 hours overtime during the pandemic crisis.

Benefits of tracking overtime hours for employers

These numbers indicate that keeping track of overtime hours is more important than ever. Tracking overtime hours is mandatory for companies to ensure compliance with labor laws. Furthermore, it lets companies keep track of one of the most significant ongoing expenses. Employers must commit to maintaining overtime visible and accountable to provide compensation accordingly.

For HR, tracking helps with effective resource management. Managers can better review company-wide work patterns and improvise to split work effectively between employees. It has tremendous value for the employer brand as it can prevent employee burnout, disengagement, and unhealthy workplace culture.

Benefits of tracking overtime hours for employees

Accurate overtime tracking ensures proper compensation. It is effective in protecting against wage theft. Furthermore, employees get paid faster as time tracking updates the payroll department about the number of overtime hours in real-time. It helps employees fight unsustainable and unfair working practices. With overtime tracking, employees become more aware of their weekly capacity. It helps them make more intelligent and more efficient decisions about using their time.

Automate Overtime Tracking with Truein

Truein is an advanced attendance system based on touchless face recognition technology. It is a centralized attendance management system designed for employees, contractual, and distributed workforce.

Some of the biggest brands and most prominent companies use Truein to automate time tracking and enforce overtime policy. The app can capture overtime hours in the background without any interference from the employee or employer. Truein uses AI at its core, helping companies automatically draft timesheets.

Employers can set the app to track overtime accurately based on the company's overtime policy. Truein calculates overtime based on preset inputs by the companies. It allows for rules such as what counts as overtime, when to count weekly offs, and how to calculate overtime hours based on the employee's department.

Overtime Policy Rule in Truein Dashboard

Employers and HRs can also download the monthly overtime report directly from the Truein dashboard.

Overtime Report in Truein

Sign up for a free demo and automate the overtime attendance capturing and it's calculation at your organization.

Bottomline

A comprehensive overtime policy is in the interest of both employers and employees. Well laid out employee overtime rules and procedures help companies justify remuneration for the extra work. It also empowers employees with indisputable evidence for addressing wage theft or unsustainable working practices. Employers or employees can't protect against abuses or inequalities without accurate overtime tracking.

Truein offers the capabilities to track over time as part of its wholly automated attendance system solution.

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