The phrase identifies the process of determining additional compensation due to employees for work performed beyond their standard working hours. This calculation typically involves multiplying the employee’s regular hourly rate by a factor (often 1.5 or 2.0) for each hour worked exceeding the established threshold. For example, if an employee earns $20 per hour and works 45 hours in a week where 40 hours constitutes a standard workweek, the process would determine the pay for the 5 hours exceeding the standard.
Accurate computation of this additional compensation is crucial for legal compliance and employee satisfaction. Failing to correctly administer this calculation can result in legal penalties, damage to employee morale, and negative impacts on a company’s reputation. Historically, regulations surrounding this type of compensation have evolved to protect workers and ensure fair remuneration for their time and effort.