Law Firm Overtime Policy

I. Introduction

The purpose of this Overtime Policy is to provide clear guidelines on the approval, recording, and compensation of overtime work. This policy ensures that all eligible employees are fairly compensated for hours worked beyond their regular schedule while supporting our firm’s commitment to a balanced work environment. The scope of this policy includes all non-exempt employees who are eligible for overtime pay under applicable labor laws.

II. Eligibility and Coverage

A. Eligibility Criteria: Non-exempt employees, as defined by labor laws, are eligible for overtime compensation. These employees are entitled to overtime pay for hours worked beyond their standard workweek.

B. Non-Exempt Employees: According to the Fair Labor Standards Act (FLSA), non-exempt employees are those who must receive overtime pay of at least one and one-half times their regular pay rate for any hours worked beyond 40 in a workweek.

1. Salary Basis Test: Employees who are paid on an hourly basis rather than a fixed salary are generally considered non-exempt.
   

2. Salary Level Test: As of [Year], employees earning less than $684 per week ($35,568 annually) are automatically considered non-exempt, regardless of their job duties.
   

3. Duties Test: Employees whose primary duties do not include executive, administrative, or professional tasks as defined by the FLSA are considered non-exempt.

C. Exclusions: Exempt employees, including most managerial and high-level professional staff, are not eligible for overtime pay as their roles presume the need for flexible work hours that may extend beyond the typical workday.

III. Overtime Authorization

A. Pre-Approval Requirement: All overtime work must be pre-approved by the employee's direct supervisor or the department head. Unauthorized overtime will not be compensated and may lead to disciplinary action.

B. Process for Requesting Overtime: Employees must submit an overtime request via our internal system at least 24 hours in advance, detailing the expected amount of overtime and the reason for the additional hours. Supervisors are responsible for approving or denying these requests based on workload necessity and budget considerations.

IV. Calculation of Overtime

A. Overtime Rate: Overtime is compensated at a rate of 1.5 times the regular hourly rate of pay. This rate is applicable to all hours worked beyond 40 hours within a standard workweek.

B. Overtime Hours: Overtime hours are defined as any hours worked beyond the standard 40-hour workweek. These hours must be tracked accurately using our approved timekeeping system.

V. Overtime Compensation

A. Types of Compensation: Employees eligible for overtime may receive their overtime compensation in the form of pay or, by mutual agreement, compensatory time off. Compensatory time off is accrued at the same rate as overtime pay (1.5 hours for each hour of overtime worked) and can be used within 60 days.

B. Payment Timeline: Overtime pay is processed with the payroll period immediately following the one in which the overtime was worked. Employees must submit all time records no later than three days after the end of the pay period to ensure timely payment.

VI. Work Schedule Management

A. Regular Work Hours: The standard work hours for full-time employees are from 9:00 AM to 5:00 PM, Monday through Friday. Any work beyond these hours that exceeds the 40-hour workweek may qualify for overtime compensation, subject to prior approval.

B. Overtime Limits: To ensure a healthy work-life balance, employees are generally not permitted to work more than 12 hours of overtime per week. Exceptions may be made during critical project phases but require additional approval from senior management.

VII. Record Keeping

A. Timekeeping Requirements: All employees must accurately record their working hours, including any overtime hours, using the firm’s designated timekeeping system. Entries must be made daily to ensure accuracy and compliance with this policy.

B. Audit and Compliance: Overtime records will be audited quarterly by our human resources department to ensure compliance with this policy and applicable labor laws. Any discrepancies or inconsistencies will be addressed promptly.

VIII. Policy Enforcement

A. Violations: Failure to comply with this Overtime Policy, including working unauthorized overtime or inaccurately reporting hours, will result in disciplinary action, which may include verbal warnings, written warnings, and possible termination of employment.

B. Dispute Resolution: Employees who believe their overtime compensation or hours have been improperly handled may file a grievance with the human resources department. The grievance must be submitted in writing within 30 days of the disputed payroll issuance. All disputes will be reviewed and resolved within 14 days of submission.

IX. Policy Modifications

A. Review and Modifications: This Overtime Policy will be reviewed annually to ensure it remains up-to-date with current labor laws and organizational needs. Modifications may be made to reflect changes in legal requirements or operational strategies.

B. Notification of Changes: Any changes to this policy will be communicated to all employees via email and will be posted on the internal employee information portal. Employees are encouraged to review the updated policy promptly to understand any new obligations or provisions.

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