Overtime implies those hours which exceed the normal working schedule in which an employee works. Although a general overtime definition refers to the hours worked beyond the typical work schedule, it is commonly implied to remunerations of such work done by the employee as well. The compensations rates and particulars of overtime vary between different companies.
To estimate the overtime rate on an hourly basis, multiply the typical pay rate of the company by its overtime rate. Now, to find gross overtime wages, multiply the number of overtime hours an employee worked by the rate of overtime you just calculated.
The Fair Labor Standards Act states clearly that employees may earn overtime compensation, depending on their income level and classification.
Overtime pay is reimbursed to employees who worked hours beyond the normal working time to finish an urgent task or due to other reasons. Before making any request for overtime, an employee must give a once over the overtime policy of the company. Typically, companies do not compensate the employees for 1 or 2 extra hours of work. Nonetheless, if an employee exceeds the 48-hour limit in a workweek, he/ she is entitled to claim overtime compensation.