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Overtime Policy
Free overtime policy template establishing when overtime work is authorized and how it's compensated for non-exempt employees.
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This free overtime policy covers Purpose, Overtime Rate, Prior Authorization Required, Calculating Overtime, Exempt Employees with 5 clearly marked [placeholder] fields to fill in — built for small business owners and first-time managers handling an HR moment professionally without a dedicated HR department to lean on. Copy it into your own word processor, fill in the placeholders, and review it — or adapt it — before use. It's part of docstoc's free document template library, alongside business, legal, real estate, finance, and HR templates. Every template here is free to copy with no signup required, and each one carries a plain disclaimer: this is a starting point for informational purposes, not a substitute for advice from a licensed professional in your jurisdiction.
Overtime Policy
Company: [Company Name] · Effective Date: [Date]
Purpose
This policy explains how overtime is authorized and compensated for non-exempt employees, consistent with the Fair Labor Standards Act (FLSA) and applicable state law.
Overtime Rate
Non-exempt employees are paid [1.5x] their regular rate for hours worked over [40 hours per week / applicable state threshold, e.g. 8 hours per day in some states].
Prior Authorization Required
Overtime must be approved in advance by [Manager/Supervisor]. Working unapproved overtime may result in disciplinary action, but authorized or worked overtime hours will always be paid as required by law, regardless of approval status.
Calculating Overtime
Overtime is calculated based on actual hours worked, not including paid time off, holidays, or sick leave, unless required otherwise by state law.
Exempt Employees
Employees classified as exempt under the FLSA are not eligible for overtime pay, regardless of hours worked, per their exemption status.
Timekeeping
All non-exempt employees must accurately record all hours worked, including any overtime, using [Timekeeping system].
Adopted by: ______________________ Date: ____________
*This document is provided for informational and educational purposes only and does not constitute legal advice. Under the FLSA, an employer must pay overtime for hours actually worked over 40/week even if it was never pre-approved — the "authorization required" language can support disciplinary action for the policy violation, but it can never be used to withhold pay legally owed.*
Edit directly in the box above. Download PDF anytime — the docstoc.io footer is always included and cannot be removed.
What's included
- Edit online — click the document, fill in placeholders, download a PDF
- 6 standard sections: Purpose, Overtime Rate, Prior Authorization Required, Calculating Overtime, Exempt Employees, Timekeeping
- 5 clearly marked [placeholder] fields for quick personalizing
- Free to use — no account or signup required
- Fully editable — adjust any clause to match your actual situation
- Includes a signature block, ready to print or sign digitally
- Fixed docstoc.io footer on every PDF (not removable)
Who this template is for
Freelancers & solo founders
Handling routine business paperwork without commissioning custom legal drafting for every document.
Small businesses
Standardizing recurring documents — leases, agreements, notices — across a growing operation.
Anyone reviewing before signing
Using a clear starting structure to understand what a document should cover, even if a lawyer finalizes it.
Growing teams
Formalizing hiring and performance processes as a company adds its first employees.
FAQ
Is this overtime policy template really free?
Yes. Like every template in docstoc's library, this overtime policy is free to use, with no account or signup needed to view, edit, or download it.
What does this overtime policy cover?
This hr template includes Purpose, Overtime Rate, Prior Authorization Required, Calculating Overtime. Fill in the [bracketed] placeholders, edit any clause online, then download a PDF — the docstoc.io footer stays on every export.
Is this legal advice?
No. This follows common HR practice, but requirements around notice, classification, and required disclosures shift by state and change over time. Get an employment attorney or HR professional to confirm compliance for your specific situation before relying on it.
Can I edit the wording?
Yes. All 5 placeholder fields and every clause are editable right on the page — change what doesn't fit, then download an updated PDF anytime.
Where can I find more free templates like this?
Browse more free hr and related document templates in the docstoc library at /document-templates/.
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Templates are drafted for general use, not a substitute for legal advice — check the note on each page for specifics.
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