Types of unpaid overtime, overtime statistics 2024, workers feel dissatisfied, undervalued, burnt out, the employer’s brand and reputation suffers, using payroll services to track overtime as a solution, the importance of having overtime policies.
Types of unpaid overtime
The types of unpaid overtime include:
- Staying late at work.
- Arriving early.
- Working from home in the evenings or on weekends.
- Working through breaks.
- Responding to calls or emails outside working hours.
Employees agree to unpaid overtime because they are afraid of losing their hours or jobs, pressure from clients or employers, lack of support or resources, or workload demands.
There are no exact statistics on overtime, as the number of hours worked overtime varies by industry. For example, in manufacturing, the average workweek in April 2024 was 40 hours, and overtime was 2.9 hours, unchanged from the previous year.
According to a recent study, almost 75% of people work overtime once a week or more often. 29% of respondents overworked two to three times a week, and about 19% worked overtime almost every day. Using a reliable payroll service will minimize the adverse effects of overtime on your team.
Effects on employee morale and employer reputation
Unpaid overtime can make employees feel undervalued, exploited, or unhappy with their work. If they complain, it can damage the employer’s reputation. Unpaid overtime can also harm the employer’s customer service, brand, and social responsibility, as workers may feel less committed, engaged, or loyal to the organization and its goals.
Unpaid overtime may reduce the quality of work and productivity because employees may experience stress, fatigue, or burnout. They become more prone to errors, accidents, or absenteeism, and turnover rates also increase. Fatigue causes around 13% of workplace injuries, making it a dangerous byproduct of overtime, especially unpaid hours. According to data from the National Safety Council, 97% of employees face at least one fatigue risk factor at work, and 80% face two or more.
Data from the American Institute of Stress shows that 83% of employees suffer from work-related stress. It affects 76% of employees’ personal relationships, and almost a million people miss work daily because of stress.
Unpaid overtime may also discourage creativity, innovation, and learning because workers may lack motivation and time to improve processes or develop new skills.
Preventing unpaid overtime
Employers should implement policies and systems that ensure workers are fully and fairly paid for the hours worked and that their rights to a healthy work-life balance and leisure time are respected to avoid risks to employee morale and costs.
Employers who struggle to track employees’ overtime hours and manage payroll can benefit from a third-party service that tracks overtime for them. These services benefit employees by guaranteeing transparency and equitable compensation and simplifying tracking for employers.
Tracking software informs businesses on how often employees request overtime and lets them institute a reliable and fair overtime policy.
Employers should establish consistent and clear policies about engaging employees outside their regular hours and make sure they agree with these policies. They should specify the terms, limits, and rates of overtime work and give employees the right to request or refuse it without negative consequences.
Final thoughts
According to the results of a VoiceNation survey published in 2024, 40% of US employees work longer than their contracted hours. The same survey ranked North Carolina as the most burnt-out state, with 87% of employees there reporting burnout, much of which could be attributed to unpaid overtime.
In the UK, 49% of people work unpaid overtime, and 23% work paid overtime. Hybrid employees are most likely to work overtime without pay at 58%, compared to 51% of remote workers and 42% of traditional workers.
Under the Fair Labor Standards Act, non-exempt employees must receive overtime pay for any hours worked if they are more than 40 a week. The payment must be at least 1.5 times their regular rate.
