The Positives of Working Overtime
Overtime is tricky. Some employees enjoy working overtime since it can mean higher paychecks and other perks. Others resent having to stay late, especially at jobs that require mandatory overtime or that do not give overtime pay. Working overtime can have many benefits for both the employee and the employer, provided that California employment laws are followed. The specific advantages for each party will depend on the unique job. Employees in Los Angeles may be able to expect certain perks for staying late.
The most obvious perk for employees who work overtime is more money. Bigger paychecks can make overtime worthwhile. In California, employers lawfully must pay nonexempt employees one and one-half times their normal working wages for every hour worked more than 8 in one workday or 40 in a workweek. If an employee making $10 works 5 hours of overtime in a workweek, for example, he or she would receive $75 in overtime pay.
The employee will receive overtime pay at this rate for all hours worked over 8 hours per shift, up to 12 hours per workday. Overtime pay will also accrue if the employee works eight hours on the seventh consecutive day of a workweek. If the employee works more than 12 hours in a workday or more than 8 hours on the 7th consecutive day, he or she will qualify for double the regular rate of pay for the additional hours.
Some workers are exempt from California’s overtime pay law. Employees on salary, for example, do not get overtime pay. Executives, administrative professionals, outdoor salespeople, employees of national service programs, taxi drivers, airline employees, carnival ride operators, actors, and many other exemptions will also not receive overtime pay.
Extra Money Around the Holidays
Padded paychecks can especially help during the holidays. Working overtime on or around a holiday could come with extra bonuses from holiday pay. Some counties in California give a 50% bonus for working holiday hours, while others will reward the employee with more vacation hours. It is often up to the employee which form of compensation they prefer. More money could mean more peace of mind around the holidays, while more vacation time could allow the employee to spend more time with family.
Opportunities for Promotions
Employers notice employees who put in the work and do not mind staying late. These employees earn the reputation of being team players and some of the hardest working people in the office. Working overtime, therefore, could put an employee in the boss’s good graces and at the top of the list for a promotion or raise. Even if the employee is exempt from receiving overtime pay, staying late and showing flexibility in the office can increase the odds of a promotion. A bump in pay could come with better financial benefits than overtime alone.
When more employees are willing to commit to overtime, the company can avoid having to take on new hires. This can mean offering more money to existing employees rather than putting the funds toward a new person’s salary or hourly pay. The company will be able to handle worker shortages or busy periods without having to recruit more people. This has mutual employee and employer benefits.
Better Productivity for the Company
One major benefit employers reap from overtime is a more productive workforce. Employees put in longer hours and increase the level of how much they complete. This allows the company to produce more goods or services and deliver them to customers at a faster rate. When the company thrives, so do all its employees. Helping the company succeed by working overtime can ultimately help employees in terms of job stability, raises, bonuses and incentives. A more profitable company could mean better earning opportunities for employees. Putting in overtime hours could benefit everyone in the workplace.