Top 5 Ways to Manage Overtime Costs

Top 5 Ways to Manage Overtime Costs

On December, 1st, 2016, a new federal overtime law will be implemented. Overtime claims and lawsuits are expected to skyrocket. Here are a few ways to protect yourself as an employer.

  • Use a time management software

Time management software will allow you to accurately track the hours of your employees. A timeclock or web-based time tracking system will allow you to record written proof of hours worked, which will allow you to defend yourself in an overtime dispute. This will also ensure that employees are accounting for time out of the office for long lunches, doctors’ appointments, etc.

  • Install a website blocking software

According to a recent study by, 73% of employees admitted to spending time on non-work related websites. 3% of employees surveyed admitted to spending over 10 hours per week on websites for personal use. 41% this time was spent on Facebook. Installing a simple website blocking software to block several common sites will free up working hours during the day and reduce overtime.

  • Limit access to smartphones and company networks

Many companies have already started to limit access to email after working hours. Employees can claim overtime for time spent responding to emails, messages and phone calls after working hours.

  • Change your working hours

Many companies are offering flextime, shorter lunch breaks, a 4 day work week, etc. Changing work hours can dramatically improve employee morale and productivity. Many productivity studies have shown that the productivity during overtime hours declines rapidly as overtime increases.

  • Hire temporary labor during peak times

Hiring temporary labor during peak times will take the work off of your internal staff. You will only pay temporary workers during peak times, allowing you to save costs and manage labor costs more efficiently. In addition, the staffing firm will be responsible for managing and tracking any overtime hours for its employees.

Call us to see how Bradley Staffing Group can assist with managing your overtime costs.

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