overtime tracking

Overtime Tracking

Overtime Tracking - How it works and what to consider.

Become familiar with the concept of overtime tracking and discover the best practices for tracking and managing overtime in your workplace.
17. January 2023  • 3 minute read

What is overtime tracking?

Overtime tracking is essentially keeping track of the hours worked by employees that go beyond the standard workweek, which is usually 40 hours, but it can differ. This information is used to pay employees at a higher rate for the overtime hours, comply with labor laws or for budgeting and scheduling purposes. 

Why do I have to keep track of overtime?

Tracking overtime is an important factor when it comes to managing your workforce. It helps you make sure you're following all the rules and regulations, keep your payroll and budget in check, schedule your employees efficiently and steer clear of legal disputes. It is therefore crucial to know the specific laws and regulations about overtime pay in your area.

Things to take into account when it comes to tracking overtime.

When it comes to tracking overtime, there are several things that employers should take into account:

Compliance with labor laws and regulations

Ensure that you are compliant with local laws and regulations regarding overtime pay, rest breaks and meal breaks.

Accurate record keeping

Keep accurate records of the number of hours worked by each employee and the amount of overtime pay earned - this will help you avoid misunderstandings.

Overtime pay rate

Be aware of the overtime pay rate, which is typically time and a half of the regular hourly rate, but can differ based on the local rules.

Eligible employees

Be aware of who is eligible for overtime pay and who is not, based on the laws and regulations.

Managing overtime

Make sure to have a plan in place for managing overtime, including scheduling, budgeting and providing time off in lieu. A scheduling tool like Workfeed can make this a lot easier for you.

Employee management

Keep an eye on patterns of excessive overtime or overtime abuse, and take appropriate action to manage it. depending on the type of your business, you can use accurate time tracking software. For instance, when it comes to time tracking and management for contractors and construction business owners, some of the best time clock apps available today can be a great solution for your business. 

For companies with shift or frontline workers, Workfeed is an appropriate solution.

What is the best way to track overtime?

The best method to keep track of overtime will depend on the needs of your business and your personal preferences. However, some methods are simply more effective than others.

 Tracking overtime manually, in a spreadsheet for instance, can be very time-consuming and sensitive for errors. On the other hand, you have to start somewhere, and for small businesses (<5) this is just fine. However, it can quickly become complex and overwhelming as your workforce grows.

An easier and scalable solution is to use appropriate software. A system in which you can both create schedules and track hours is ideally suited for this since you always have an accurate overview of the (individual) hours at hand and you can adjust your schedule as needed.

And remember: Regardless of which method you choose, it's important to ensure that you are compliant with the local laws and regulations of the region, and that the method is able to provide accurate, detailed and error-free records.
Berry van Waarden
Berry van Waarden
Head of Marketing

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