1.1 This policy establishes a clear and consistent framework for the authorisation, recording, compensation, and monitoring of all overtime work performed by eligible employees of the Organization. Its purpose is to ensure full compliance with applicable federal, state, and local wage and hour legislation, to protect employee well-being by preventing excessive work hours, and to enable the Organization to manage labor costs effectively while meeting operational demands. This policy applies to all non-exempt employees across every department and location. Exempt employees, as classified under the applicable labor law, are not eligible for overtime compensation but are expected to manage their working hours in accordance with the Organization's flexible working guidelines.

1.2 All overtime work must be authorised in advance by the employee's direct supervisor or manager through the Organization's designated approval workflow. Employees shall not commence overtime work without receiving written or system-generated approval prior to the overtime being performed, except in cases of genuine emergency where the supervisor is unavailable, in which case approval must be obtained within 24 hours of the overtime being worked. All overtime hours must be recorded accurately and contemporaneously in the Organization's time-tracking system on the day the overtime is performed. Supervisors are responsible for reviewing and approving submitted overtime records within 3 business days. Working overtime without prior authorisation is a violation of this policy and may result in disciplinary action, though all hours actually worked shall be compensated in compliance with applicable law.

2.1 Overtime eligibility is determined by the employee's classification as exempt or non-exempt under the applicable wage and hour legislation, including the Fair Labor Standards Act (FLSA) in the United States and equivalent statutes in other jurisdictions. Non-exempt employees are eligible for overtime compensation for all hours worked in excess of the standard work threshold. The HR department, in consultation with Legal Counsel, shall maintain current classification records for all positions and shall conduct a classification review whenever a role undergoes a material change in duties, responsibilities, reporting structure, or compensation level. Misclassification of employees shall be corrected immediately upon discovery, and any back pay owed as a result of misclassification shall be calculated and paid within 30 days.

2.2 The Organization defines the standard work week as 40 hours, distributed across 5 working days of 8 hours each, unless an alternative schedule has been approved in writing by the Department Head and the HR department. For non-exempt employees, all hours physically worked in excess of 40 hours in a single work week shall constitute overtime. Paid time off, holidays, sick leave, and other non-working paid hours shall not count toward the 40-hour threshold for overtime calculation purposes, unless required by applicable state or local law. Where the Organization operates in jurisdictions that impose daily overtime thresholds (e.g., overtime for hours exceeding 8 in a single day), the more favourable standard to the employee shall apply.

3.1 Overtime shall be compensated at the following premium rates: 1.5 times the employee's regular hourly rate (time-and-a-half) for all overtime hours worked on regular working days in excess of the standard weekly or daily threshold; 2.0 times the regular hourly rate (double time) for hours worked on the employee's designated weekly rest day or on Organization-recognised public holidays; and 2.5 times the regular hourly rate for overtime hours worked on public holidays that also fall on the employee's designated rest day, where required by applicable law. The regular hourly rate shall be calculated by dividing the employee's total regular earnings for the work week, including non-discretionary bonuses and shift differentials, by the total number of hours worked in that week, in accordance with applicable legal requirements.

3.2 Where permitted by applicable federal, state, or local law, and where the employee provides written consent, the Organization may offer compensatory time off (comp time) in lieu of overtime pay. Compensatory time shall accrue at a rate of 1.5 hours of paid time off for each overtime hour worked, and 2.0 hours of paid time off for each hour of rest day or holiday overtime. Accrued compensatory time must be utilized within 60 calendar days of the date it was earned, and the scheduling of comp time shall be subject to supervisory approval based on operational requirements. Any unused compensatory time remaining at the end of the 60-day period, or upon the employee's separation from employment, shall be paid out at the employee's current regular hourly rate multiplied by the applicable overtime premium.

4.1 To protect employee health, safety, and well-being, no employee shall be required or permitted to work more than 12 hours in any single day or more than 60 hours in any single work week, inclusive of overtime. These limits may be exceeded only in cases of documented operational emergency, such as critical system failures, natural disasters, or client-mandated deadlines with contractual penalties, and only with the prior written approval of the Department Head and the Head of Human Resources. Emergency overtime exceptions shall be limited to a maximum of 2 consecutive weeks, after which normal hour limits must be restored. The HR department shall monitor cumulative overtime hours on a weekly basis and shall flag any employee who exceeds 20 hours of overtime in a single pay period or 3 consecutive weeks of overtime for management review and workload assessment.

4.2 Managers shall ensure that overtime assignments are distributed equitably among qualified employees within their teams, taking into account individual skills, availability, and voluntary preferences. No employee shall be subject to mandatory overtime on a recurring basis without consideration of their personal circumstances and well-being. The HR department shall conduct quarterly analyses of overtime patterns by department, team, and individual to identify trends that may indicate understaffing, workload imbalances, or inefficient processes. Departments where overtime expenditure exceeds 15% of regular payroll for two consecutive quarters shall be required to submit a staffing and workload assessment to the HR department and the relevant Division Head, with recommendations for corrective action including potential headcount increases, process improvements, or workload redistribution.

5.1 All overtime records, including authorisation requests, time entries, approval logs, compensation calculations, and compensatory time accrual and usage records, shall be maintained in the Organization's time-tracking and payroll systems and retained for a minimum of 3 years from the date the overtime was worked, or for such longer period as required by applicable federal, state, or local wage and hour legislation. The HR department, in coordination with Internal Audit, shall conduct semi-annual audits of overtime practices to verify accurate recording of hours, proper application of overtime rates, compliance with authorisation requirements, and adherence to maximum hour limits. Audit findings shall be reported to the Head of Human Resources and the relevant Department Heads. Violations of this policy, including working unauthorised overtime, failing to record overtime hours accurately, pressuring employees to underreport hours, or systematically exceeding overtime limits, shall result in disciplinary action up to and including termination of employment.

5.2 This policy shall be reviewed at least annually by the policy owner in consultation with Legal Counsel, the Finance department, and operational leadership to ensure continued compliance with applicable wage and hour legislation and alignment with the Organization's operational needs and workforce management strategy. Amendments shall be approved by the Head of Human Resources and communicated to all affected employees and managers at least 14 calendar days before the effective date. The HR department shall provide mandatory training on overtime procedures to all managers and supervisors upon appointment and whenever material changes are made to this policy, with refresher training conducted annually.