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An overtime policy should include who is eligible—typically non-salaried employees—and what conditions apply to qualify for overtime hours. Such policies should also define how the employee will be compensated, whether it is time off, additional payment, or other method. Will the employee be compensated at a rate of one hour for each hour worked, or time and a half? The organization’s overtime policy must comply with all local, state, and federal laws applicable to the location and should fit within budgetary constraints.

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