The 5 Most Dangerous Threats Lurking at Work! #3 - Overtime
Updated: Jan 29
#3 Overtime – This is a direct threat to your budget! But there are some times it can be good,– because you’re so busy you need to have the extra hours put into an order or project - for a short period of time. As a business owner, overtime is usually something you try to avoid, if you can. But how you avoid it makes ALL of the difference – this is where the threat lurks!
Ask yourself this:
· If you have an hourly employee who worked overtime without prior permission, do you have to pay him? The answer is….yes, you do! Now, that doesn’t mean you have to let that him get away without consequences. You can write him up for not getting pre-approval and if it happens again, you let him know there will be additional discipline up to and including termination.
· Your hourly employee keeps working after she has clocked out. She is behind on her work and she’s afraid of losing her job. She told you she was perfectly fine with not being paid because it’s her fault she is behind. You appreciate her dedication. Unfortunately, you cannot allow her to do this. If you allow this to occur or continue, this can come back to haunt you. The employee is just fine with doing this, until she’s not and then you find yourself in hot water with the Department of Labor when she files a claim for miscalculation of overtime pay!
· You have an hourly employee who checks emails from home and responds to a number of issues, working “off-the-clock”. You got one of these email responses – do you say something to the employee? The answer is…yes, you do! You have to let that employee know that they cannot work “off-the-clock” – they are NOT to check email after hours!
If you have employees who are needing to work overtime to get their work done, you need to check into what is causing that. Is it too heavy a work load? Is it poor time management on the employee’s part? Are there poor work processes? From that analysis you will be able to determine whether you need to hire more help, re-engineer processes or address the employee issue. The overtime threat is too expensive to have it running and possibly ruining your business.
Get my Overtime Threat Assessment to help you protect your business from the threat of overtime!