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
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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
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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