How to Negociate Overtime Compensation
Posted in Salaries & Benefits
Overtime compensation depends on the following factors: your status as a salaried or hourly employee, your status as a full-timer or part-timer, and the employment laws in your state that applies to your company.
The best time to discuss and negotiate these issues is during your final interview when it's already clear that you are hired.
Clarify your employee status
It is important that the employee status under which you will be hired is explained clearly to you. Majority of all states define a full-time employee either as a salaried employee who is exempt from issues such as overtime compensation, or as an hourly employee whose overtime compensation is mandated by law.
Include overtime compensation in salary negotiations
This is if you are a salaried employee, which means you are exempt from overtime compensation. Your are options are:
You can negotiate to have the ceiling of the salary range that you are negotiating to be raised
You can negotiate to have your year-end bonus structured to include your overtime work.
Be prepared
Arm yourself with knowledge about:
The overtime compensation law in your state.
See "Minimum Wage Laws in the States" at the U.S. Department of Labor website at www.dol.gov .
Your new employer's written policies on overtime compensation.
Clarify the rules for hourly employees
Take into consideration the number of paid hours in the daily and weekly schedule and the point where the overtime compensation is activated, and lastly, the time allotted for lunch and other breaks.
Express willingness to work overtime
This should be considered if you are well-compensated. On the other hand, if you are not, explain that overtime work may cause extra expenses for you when it comes to commuting costs or other expenses such as childcare (if it is applicable to you).
Finally, if it's already clear that you are hired, be clear if you have to set limits to your capability to do overtime work.
