Overtime is common in the US due to labor shortages, unexpected demand, employee training, and seasonal hours. Some companies use overtime pay as an incentive. Employees may work overtime due to labor shortages, unanticipated demand, or during busy periods and holidays. Overtime can be an opportunity to earn more income but can also be a waste of free time.
Overtime is always put into a job beyond the normal full-time work week, which in the US is typically 40 hours. Common reasons for working overtime include labor shortages, unexpected demand, employee training, and extended seasonal hours. Some companies use overtime pay – often one and a half times an employee’s normal wage – as an incentive for employees to work after hours or during public holidays and exceptionally busy periods.
One of the most common reasons employees work overtime is a labor shortage within the company. This may be the result of other employees running out of time due to illness, childbirth or vacation, or because the company cannot afford to hire enough labor to complete all of the work to be done. Dependent employees are often forced to work unpaid overtime due to corporate downsizing and other cost-cutting measures. Some salaried employees report regularly working an additional 20 hours or more per week with no overtime compensation.
Another reason employees are asked to work overtime is to meet unanticipated retail or manufacturing demand. If consumer purchases exceed sales forecasts, producers can increase production shifts to meet demand. This can have a cascading effect through globalized industries that rely on parts of different regions. Industries that need to educate employees in new procedures can also offer overtime hours during the training period to enable training while keeping staff active.
Employees in the retail and service industries often work overtime during busy periods and holidays. Stores may stay open longer during such shopping periods and may not be able or hire enough temporary staff to fill out the program. Restaurant staff will often receive overtime when an unusually large dinner crowd stays late. Other business sectors, such as the computer software industry, expect to have very busy periods of work before a product is released. This so-called time crunch helps get products to shelves on time, but it’s also mentally and physically demanding for many employees.
From an employee perspective, overtime presents both an opportunity to earn more income and a waste of free time. Many employees take advantage of the opportunity to make more money, but others may be tired after a long day and want to go home to spend time with their families. Forced overtime for salaried employees is an unwelcome part of many careers. The 40-hour week, which was standard in many areas during the last half of the 20th century, has been replaced with a more anticipated work time for many professions.
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