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Four overtime myths exposed

by , 16 May 2013
• 384 annoying HR questions you'll never have to answer again

• Four overtime myths exposed

• Uncovered: The hidden tools leaders like Blanchard, Branson, Trump and Sunter use

Dear Reader,

Quite often, both employers and employees make mistakes when it comes to overtime. We're asked so many questions about overtime often! We're going to expose myths like you don't have to pay overtime and travel time isn't considered for overtime.

Let's see what these myths are!


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Four overtime myths exposed?

Myth #1: You don't have to pay overtime

One of the most common mistakes employers make is assuming that every salaried or commission based employee can work unlimited hours without being paid overtime. Many employees who are paid on a salary or commission basis must also receive overtime pay when they work more than 45 hours in a 7-day workweek. To be exempt from overtime pay, an employee must meet specific requirements. Do you know what these requirements are?

Myth #2: Giving employees titles that end with 'manager' and 'executive' exempts an employer from paying overtime.
An employee's job title is not a factor when considering overtime pay. Just because your employee has a 'manager' in their job title, does not mean they can't earn overtime. It's the actual job duties and how much they earn annually, not the title, that determines if they're entitled to overtime pay.


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Myth #3: It's legal for an employee to sign something releasing the business from paying overtime.
The earnings threshold in South Africa is R 183 008 annually. If your employee earns less than this amount per year they are entitled to overtime pay. If an employee's entitled to overtime pay they can't sign a waiver agreeing to work unlimited hours. That agreement isn't worth the paper it's written on. You're still obligated to pay overtime.  

Myth #4: I don't need to include hours spent traveling towards calculating overtime.
'Travel isn't work' is a myth we hear far too often. Time spent by an employee travelling as part of his/her work activity, such as from job site to the office during the workday must be counted as hours worked.

You must understand your overtime duties and ensure your policies and practices are in compliance. You'll learn more about overtime in O03 of the Practical Guide to Human Resources Management. You'll find out the four things you need to know about time off in lieu of payment for overtime and how to calculate overtime. If you don't have the Practical Guide to Human Resources Management, get yours today

Best regards,

Miriro Matema
Product Manager – Practical Guide to Human Resources Management

P.S. Get your copy of the Practical Guide to Human Resources Management today and get a FREE HR Organiser!

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