Many people incorrectly assume that overtime pay reflects extra hours worked, thus leading to the false conclusion that “paying overtime pay is cheaper than hiring additional staff.”
There are a variety of reasons why this is untrue, as overtime pay can routinely be rewarded for those who do not work even a full shift, let alone extra hours. Here is one additional example of how overtime pay can be awarded in excess of hours actually worked, courtesy of Steve Lopez of the Los Angeles Times:
Thanks to a generous provision agreed to by city officials, an inspector who does an off-hours inspection is guaranteed a minimum of four hours of pay at time-and-a-half…even if the inspection takes only a few minutes.
You can read the full article here.
For past reports from Transparent California on the issue of inflated overtime pay, please see below: