Companies tend to use two broad ways of calculating
overtime. Sometimes this may depend on the type of job and the number of
shifts considered. In some jobs, people work 9 to 5, Monday to Friday.
This is the typical corporate scenario. In some other cases, such as when
I worked in a pseudo-health care (mentally challenged) environment, people
work 7 days a week and the shifts rotating on a 24-hour a day basis.
Regardless, a week worth of work counts for 40 regular hours; anything
above that is considered overtime. There is a trick that is also applied,
not necessarily because employers tend to cheat (some times some zealous
supervisor would think of scoring high points with the management by
playing with other people's times...) but because shifts and businesses
are different. As mentioned already, there are two typical scenarios.
- First scenario: Suppose a business uses regular shifts from 9 to 5.
If an employee works on Monday from 9 to 5 and on Tuesday from 9 to 3.
This employee would have worked 8 + 6 = 14 regular hours. Now suppose
the employee worked on Monday from 9AM to 7PM, that is 10 hours. At
the end of the week, this employee should have worked 8 regular hours
and24 overtime hours for the whole week. In other words, this employee
would have worked overtime for a particular day only if on that day he
worked more than 8 hours
- Second scenario: Suppose a business is run 24 hours a day with long
shifts. In this type of business, suppose an employee worked on Monday
from 8AM to 8PM, that is 12 hours. At the end of the week, depending
on the business, this employee would count for 12 regular hours and no
In this exercise, we will simulate a payroll
calculation. We will consider the first scenario only. We will consider
that any time above 8hours for a particular day is overtime. Based on
this, an employee who worked only 26 hours in a week can have some
overtime while another employee in the same business and who worked 38
hours may not have overtime.