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Do not allow your hourly employees to control overtime. The premium paid on top of the regular pay per hour cuts into net profits when it is not billable by your company to someone on the outside. Force supervisors to pre-approve overtime and justify the need up front before spending the money. If the overtime is repeated every week, they may need to hire a few more people to avoid paying the punitive 50% premium on overtime over 40 hours per week.  If the overtime is constant every week without let up, maybe the shift needs to be redefined. If trucks always show up after the end of the shift forcing overtime, either the trucks need to be reschedued or the scheduled shift hours need to be changed and some employees’ work hours need to be staggered. If there is constant need for overtime, maybe you need to hire more people to avoid the overtime premium incurred. When the overtime is billable and covered by premiums charged to customers, there is not a problem but allowing employees to work overtime without any analysis or reasons that explain why it is necessary invites fraud and abuse.

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