The phrase identifies the method of figuring out further compensation attributable to workers for work carried out past their commonplace working hours. This calculation usually entails multiplying the worker’s common hourly fee by an element (typically 1.5 or 2.0) for every hour labored exceeding the established threshold. For instance, if an worker earns $20 per hour and works 45 hours in per week the place 40 hours constitutes an ordinary workweek, the method would decide the pay for the 5 hours exceeding the usual.
Correct computation of this extra compensation is essential for authorized compliance and worker satisfaction. Failing to accurately administer this calculation may end up in authorized penalties, injury to worker morale, and unfavorable impacts on an organization’s popularity. Traditionally, rules surrounding this kind of compensation have advanced to guard employees and guarantee truthful remuneration for his or her effort and time.
