Overtime refers to the extra hours worked by an employee beyond their standard working hours, often compensated at a higher pay rate as per labor laws and company policies. Effective overtime management ensures fair compensation, workforce productivity, and compliance with labor regulations. Industries like manufacturing, retail, logistics, e-commerce, and facility management services (FMS) rely on structured overtime policies to meet operational demands and maintain workforce efficiency.

For businesses managing contract workers, gig employees, apprentices, and blue-collar workforce, tracking and optimizing overtime helps in controlling labor costs, preventing burnout, and ensuring legal compliance. By leveraging HR technology, attendance tracking systems, and payroll automation, companies can streamline overtime approvals, ensure accurate payments, and maintain workforce efficiency.