Mandatory Overtime: What it is And How To Avoid it

What is mandatory overtime?

Mandatory overtime is when an employer requires an employee to work more than their regular working hours—often beyond the standard 40-hour week. It’s not an option; the employee must comply or risk disciplinary action.

This typically happens when there’s a sudden increase in demand, staffing shortages, or tight project deadlines. Employers rely on this practice to keep operations running smoothly during peak periods.

Is mandatory overtime legal?

Yes, in most cases, mandatory overtime is legal in the United States—as long as it complies with the Fair Labor Standards Act (FLSA). According to the FLSA:

• Employers can require overtime.
• They must pay non-exempt employees 1.5 times their regular rate for any hours worked over 40 in a workweek.

However, it must not violate other employment laws, union agreements, or individual contracts. Some exceptions include:

• Health and safety concerns: For certain industries (like trucking or healthcare), there are limits to protect employee wellbeing.

• Disability or religious reasons: Employees may be protected under the Americans with Disabilities Act or Title VII of the Civil Rights Act.

So, yes—it’s legal, but only if done by the book.

Employee rights and employer obligations

Mandatory overtime can’t be enforced blindly. Both employers and employees have responsibilities and rights. Here’s a quick breakdown:

⚠️ Note: Some states (like California and New York) have stricter overtime rules. For example, in California, overtime kicks in after 8 hours in a single day, not just over 40 in a week.

The legal landscape of mandatory overtime in the U.S.

Mandatory overtime is legal—but the rules are more nuanced than you might think. Employers must comply with both federal and state laws, and recent court decisions have made it even more important to stay up to date.

Federal law: what the FLSA says

The Fair Labor Standards Act (FLSA) is the cornerstone of federal overtime regulations. Under the FLSA:

• Non-exempt employees must be paid 1.5x their regular rate for any hours worked beyond 40 in a workweek.
• There is no federal limit to how many hours an employer can require in a week, as long as proper overtime pay is provided.
• Refusal to work overtime may be grounds for disciplinary action, unless protected under other laws or agreements.

⚠️ Update on salary thresholds (2024–2025)
In 2024, the U.S. Department of Labor proposed increasing the salary threshold for exemption to $1,128/week. But in November 2024, this update was blocked in court.
The threshold remains at $684/week ($35,568 annually).

State-specific overtime laws

Many states go beyond the FLSA to offer additional protections. Here's a summary of key differences:

📌 Employers should always consult state-specific labour codes or legal counsel to ensure compliance.

Industry-specific restrictions

Certain industries have extra rules to protect employees from fatigue and safety hazards:

• Healthcare: In some states (e.g., Massachusetts, Washington), nurses cannot be forced to work overtime unless in an emergency.

• Transport: Truck drivers and airline crew have hour caps under federal Department of Transportation (DOT) regulations.

• Public safety: Firefighters and police may be subject to different FLSA thresholds under special exemptions.

Union contracts and employment agreements

If a collective bargaining agreement (CBA) or employment contract is in place, its terms usually override default rules:

• A CBA may limit or prohibit mandatory overtime.
• Agreements may specify notice periods, maximum hours, or penalties for unscheduled OT.

Employers cannot enforce overtime that breaches these agreements.

Health and safety regulations

Too much overtime can pose a health risk. OSHA (Occupational Safety and Health Administration) doesn’t limit hours—but employers can be held accountable if unsafe conditions result from excessive work demands.

Also, mandatory overtime should not:

• Lead to burnout or fatigue-related injuries
• Violate local rest break or meal period laws
• Exceed state-imposed caps on work hours in high-risk industries

How much notice is required for mandatory overtime?

There’s no federal law under the FLSA that requires employers to give employees advance notice before scheduling mandatory overtime. In theory, an employer could ask someone to stay late or work a weekend with little or no warning.

But—and this is a big but—there are some important exceptions and best practices to consider.

State and local laws

Some states or local jurisdictions do require advance notice for scheduling changes, including overtime. These laws are often referred to as “predictive scheduling” laws.

Note: These laws typically apply to specific sectors, like retail or hospitality, and often include penalties for last-minute changes.

Union and employment contracts

Collective bargaining agreements (CBAs) or employment contracts may require specific notice periods before assigning overtime. Ignoring those terms can lead to legal trouble or grievances.

✅ Tip for employers: Always check the terms of any agreement or local law before making last-minute schedule changes.

Best practices for employers

Even if the law doesn’t demand notice, good management does. Providing advance notice:

• Improves employee morale
• Reduces absenteeism or turnover
• Helps with planning and work-life balance

In summary

How Shiftbase helps prevent unnecessary overtime

Preventing overtime starts with one thing: visibility. You can’t manage what you can’t see—and that’s where Shiftbase comes in. Our workforce management software gives HR managers and employers the tools they need to plan ahead, track hours in real-time, and avoid accidental or unnecessary overtime costs.

Smarter scheduling with real-time insights

Shiftbase lets you build work schedules based on actual staffing needs. You can:

• See total scheduled hours per employee at a glance
• Set maximum hours per day or week to stay compliant
• Get alerts before someone goes into overtime

This helps you spot problems before they happen, not after.

Accurate time tracking = no surprise OT

Employees clock in and out using the Shiftbase time tracking tool—whether they're on-site or working remotely. The data syncs instantly with their schedule, so you always have an accurate overview of:

• Hours worked vs. hours scheduled
• Early clock-ins or late clock-outs
• Break compliance

This means no guessing, no rounding, and no unexpected overtime payments at the end of the week.

Overtime rules and approvals, built-in

You can define custom overtime rules that match your policies—or state law. For example:

• Automatically apply 1.5x pay after 40 hours (or 8 hours per day, depending on state)
• Require manager approval before an employee works OT
• Flag repeat overtime patterns for further action

Reduce manual errors and payroll surprises

Since everything’s integrated—from scheduling and time tracking to reporting—there’s no need to juggle spreadsheets or chase down paper timesheets. This lowers the risk of:

• Payroll errors
• Unintentional policy violations
• Labour law compliance issues

✅ Bonus: Shiftbase also integrates with your payroll provider to ensure smooth, accurate processing with no overtime headaches.

Easily manage your employees' hours worked!

• Easily clock in and out
• Automatic calculation of surcharges
• Link with payroll administration

Try for free Request a demo

How to avoid mandatory overtime

While mandatory overtime may be legal, it’s rarely ideal. It can lead to employee burnout, lower morale, and higher turnover—not to mention increased labour costs. The good news? With the right strategies and tools, you can avoid it altogether (or at least minimise it).

Plan ahead with smarter scheduling

Forecast busy periods and schedule accordingly. Use data from past months or seasons to anticipate staffing needs. A tool like Shiftbase helps you build balanced rotas that reduce last-minute gaps.

Track hours in real-time

Overtime often creeps in unnoticed. Real-time time tracking lets you see when employees are approaching their weekly limits—so you can adjust schedules before overtime kicks in.

Cross-train your team

When employees are trained to handle multiple roles, it’s easier to reassign staff when needed instead of relying on a few key people to work extra hours.

Hire part-time or seasonal staff

In industries with seasonal peaks, having a pool of trained part-timers ready to step in can be a lifesaver—and far more cost-effective than overworking your full-time team.

Manage absences proactively

Unplanned absences can lead to staffing shortages. A strong absence management system helps you plan for time off, track patterns, and maintain coverage without falling back on overtime.

Set clear overtime policies

Sometimes, just having a clear policy in place is enough to reduce unnecessary OT. Define when overtime is allowed, who must approve it, and how it’s compensated. Communicate this with your team early and often.

Prevent overtime before it starts with smart planning

Staying compliant with overtime laws isn’t just about knowing the rules—it’s about preventing problems before they happen. With Shiftbase, you can do just that. Our employee scheduling feature helps you build efficient rotas that avoid overscheduling, while time tracking shows you exactly when and where hours are being worked. Add absence management into the mix, and you’ll always have the right coverage—without relying on costly last-minute overtime.

Ready to take control of your labour costs? Try Shiftbase free for 14 days right here—no strings attached.