Approve overtime before it happens, with a reason and an estimate of hours and cost.
Pre-approval keeps overtime intentional and within budget. It also makes managers look at alternatives, such as moving shifts or calling in part-time staff.
Approval rules affect process, not pay: non-exempt employees must be paid for overtime they actually work, even if it was not approved. Handle unapproved overtime through your policy, not by withholding pay.
10 items. Keep it on a tablet, or print a copy for the clipboard.
Two warehouse pickers call in sick before a large order. The supervisor requests 3 hours of overtime for two colleagues; the manager approves after checking neither is already above 40 hours. Actual overtime is 2.5 hours each, recorded for payroll.
Overtime costs half again per hour, so approving it ahead of time lets a manager weigh it against other options like a part-timer. The FLSA still requires overtime that was worked to be paid, so the form is a budgeting control, not a way to avoid paying.
| Employee | Hector, line cook, Bayside Seafood Grill, Mobile AL |
|---|---|
| Date | Sat, July 4 |
| Extra hours | 4 |
| Reason | Holiday banquet for 180 guests |
| Alternatives | Part-timer asked; unavailable |
| Estimated cost | 4 x $16 x 1.5 = $96 |
| Actual | 3.5 hours, $84; approved by GM Rita |
The cost estimate and the actual both use the same overtime rate, $24 an hour, so the $12 drop matches the half hour less worked. Recording that a part-timer was asked first shows overtime was not the default.
For non-exempt employees, yes, if worked.
A manager with budget responsibility.
Use the overtime calculator.
Consider a schedule change or a new hire.
Yes. Under the FLSA, if an employer knows or should know work was done, it must be paid, including overtime at time and a half for nonexempt employees. The employer can discipline an employee for working unapproved overtime, but cannot refuse to pay it.
Multiply the expected extra hours by 1.5 times the employee’s regular rate. The regular rate may need to include shift differentials or nondiscretionary bonuses, so the true cost can be higher than base pay times 1.5. Add employer payroll taxes if you want the full cost.
More for the same job
Use the overtime authorization form for the record you need today. To see who clocked in, and when, book a demo of EZTime.