Overtime pay compensates employees for working extra hours beyond their standard schedule. Most countries regulate overtime, setting limits on hours and requiring premium pay rates. However, rules vary significantly in their details.
Premium Rates
Overtime premiums typically range from 25% to 100% above regular pay. The US federal standard is time-and-a-half (150%) for hours over 40 per week. Some countries require higher rates for weekend or night overtime. A few allow compensatory time off instead of premium pay.
Hours Limits
Many jurisdictions cap total working hours including overtime. The EU Working Time Directive limits average hours to 48 per week. Other countries set daily or weekly maximums. Some require advance authorization for overtime or limit consecutive overtime days.
Exempt Employees
Certain employees may be exempt from overtime requirements. In the US, this includes executive, administrative, and professional employees meeting specific criteria. Other countries have different exemption categories. Misclassifying employees as exempt is a common compliance risk.