Discussing Money at Work - Part 3: Payment for overtime
1 02 2008
If you do not ask to be paid for additional hours requested by your employer, they will not pay you. For a relatively significant part of my professional life, I worked an inordinate number of unpaid hours beyond the usual 9 to 5.
In fact, my average work week was between 70 to 80 hours. Consultancy roles often called upon working weekends, lunchtimes, late nights, and even public holidays.
Our employment contracts stipulated that we are not to discuss salary or benefits with other employees. One late evening, this rule was broken. A distinguished colleague of ours revealed that he was indeed paid overtime. Between the seven of us, he was the only one who was able to negotiate this benefit.
The rest of us were either too polite, or too scared to ask for more money.
The next day, we had lunch to discuss how he was able to obtain overtime reimbursements. To my surprise, he asked the first question:
“I was thinking last night. Why didn’t you ask for overtime?”
We often used the term “overtime” as slang for “payment for overtime”. I responded:
“I had no idea I could. I thought this was just a part of the job.”
He shook his head, and continued:
“It is only a part of the job, if you and everyone else accepts it to be. I value my time too much to give it away for free, especially to make wealthy folks even wealthier.”
Salary Dilution - The Need for Change
In a straightforward manner, he asked me:
“If you don’t mind me asking, roughly what is your salary?”
He was a good friend, so I didn’t mind sharing this information. This was the second contractual rule broken in two days, but the lesson was invaluable.
“$45,000 a year.”
He continued, “So if you work 70 hours a week, for 50 weeks of the year, you’re probably making around… $12 an hour. And that’s before tax.
I covered my face with my hand. He was right. Sympathetic as I am to what people were earning in other parts of the world, I couldn’t help but feel angry at myself for this. He went on:
“Salary dilution my friend. The consultancy hired you for a fee, then diluted it. Its effectively a salary decrease. I’m not greedy for asking to be paid overtime, I simply refuse to have a drop in my salary unless it is absolutely justified.”
After a few minutes of venting, I asked, “So, how can I get them to pay me overtime, if others are not being paid?”
I listened carefully. I learned the lessons, and negotiated overtime with not only that employer, but the others that followed. Here is what I have learned.
Before, or After
Overtime is almost always better negotiated ahead of time. I learned to appreciate this both as an employer and as an employee. Do not be discouraged however. If you have worked extraordinary hours for the last six months, I will show you a technique that allows you to recoup some of that time.
A very good reason for negotiating overtime in advance is that it may save you from overtime altogether. I’ll explain. If your employer needs you to perform 70 hour weeks, and you ask that overtime is paid. This is effectively the same as hiring another person, or asking another employee to help you. By spreading a 70 hour week across two employees, there is no longer a need to work after hours.
In one particular instance, a project manager had steadily and significantly increased my contact hours on an important client project. After I discussed my expectations of overtime, she immediately reduced my hours and explained that “overtime shouldn’t be necessary.”
If employers assume that you will work for free, they will not adhere to the boundaries of a 9 to 5 workday. Make a note to tactfully and regularly expressing your overtime expectations. Your chances of being asked to stay back will greatly diminish.
The Approach
Tact. Such a short word, and yet so significant. The discussion about overtime needs to be private. An employer may ask “Who can come in this weekend?” or “I need people to come in this weekend”. Do not shout from across the room, “Do we get paid overtime?”. If there are five employees in the room, a “yes” can be a costly response for an employer.
Instead, do not commit to working overtime yet, and make a time to see your manager shortly after. There is a time to fight other people’s battles, this is not one of them.
“I’ll be quick. You were talking about working on the weekend a little earlier. At what rate are we reimbursed for overtime?”
Note, I did not ask “Are we reimbursed?” or “Do we get paid overtime?“. By asking “how much”, I am indirectly communicating my expectation that there is payment for overtime. I do not want a yes or no response, I simply want to know “how much?”.
The first time I asked this question, I was expecting the answer “zero”. Instead, the manager “ummmn’ed” and “ahhh’ed” before asking me what I expected to be paid. In fact, only on rare occasions has a manager responded with “there is no payment for overtime”. The majority are open to discussing pay, but only if you ask for it.
The trick is to deliver this line confidently. It is a reasonable question, and you should feel no shame or fear in asking it. In my previous articles, I have mentioned the fear we have in discussing money with employers. We fear that asking for money will tarnish our reputation as a dedicated employee. Understand that respect is more important to your reputation than anything else. You cannot command respect without demonstrating the value you have for your time.
Doesn’t that sound reasonable?
Throughout these scenarios, you will notice a key phrase that prompts the employer. By stating something that sounds perfectly reasonable, and then asking “Doesn’t that sound reasonable?” you give the employer little chance of counter-arguing.
As a society, we have a basic and shared concept of what we feel is “reasonable”. Your aim is not to attack the employer or outsmart them. It is to make them see things from your perspective, and then get them to agree that your demands are reasonable.
Sorry, we don’t pay overtime
I have, albeit rarely, been given the response:
“Sorry, we don’t pay overtime.”
A particular employer had said this to me without even looking at me, no explanation, no justification. To these highly dominant types of employers, I calmly respond with:
“Well I don’t work for free. See you Monday morning.”
To be fair, many attempt to justify why they do not pay overtime. Here are some of the road blocks employers use to dismiss the notion of paying you.
We don’t pay, but we’ll make a note of your dedication for your next review.
This is the one I get most frequently. The colleague mentioned at the start of this article warned me of this, and informed me of an effective technique to deflect it.
Upon hearing this reason, you should lean back in your chair and say, in a friendly manner:
“I appreciate that, but unpaid overtime puts me in a very difficult situation with my family and friends. I already show my dedication for this company, by generating money for each dollar you invest in me. I’m happy to continue my part of the deal if the company is willing to do the same. Does that sound reasonable?”
No one else is being paid overtime.
This is another common response when asking for overtime. Your employer tells you:
“We don’t pay anybody else overtime. It wouldn’t be fair.”
When an employer or manager puts “It wouldn’t be fair” on the end of such a ridiculous statement, hold back the chuckle. Yes, I know, the mere fact that they are not paying anybody for overtime is in itself unfair. Instead, try:
“I understand that other employees may not be receiving overtime. That is their business. This is not an issue of fairness. Very much like my salary, this is what I am asking to do my job professionally.”
If your employer again responds with “But it wouldn’t be fair…”
Then confidently say:
“In the interest of fairness, if I ask that you increase my salary to that of the highest earner in my group, will you do it? I don’t expect you to. What other people get paid is their business, and what I get paid is mine.”
Lean in, and continue:
“I will of course keep this in confidence. I am not asking to be paid a bonus, only that you pay for the hours I work. That’s reasonable isn’t it?”
But, I don’t get paid overtime
This is the hardest of all. If your manager also works long hours, and weekends without overtime, they may say:
“But, I don’t get paid overtime, and I still come into work when I’d rather be at home.”
To tackle this, you need to be confident in discussing your salary and most difficult of all, their salary. A well phrased response would be:
“I know. But you and I are on a completely different playing field. Your responsibilities are already factored into your salary. When signing my employment contract, I agreed to work regular hours for my wage. If the company wishes to negotiate a higher salary to factor in my working hours, I am happy to do that.”
The delivery of this is very important. You must not sound defensive. The last sentence should sound like a possible solution to this problem. Of course, they likely will not increase your salary on the spot. This is to offer your manager a perspective. Continue with:
“Look. I know how hard you work and the hours you put in. You’re the last person I would want to approach such issues with. But I cannot justify to my family and friends why I am still at work, if I’m not being paid to be here. Be it, through a more substantial salary or an overtime rate, I work hard, all I ask is that I’m paid.”
Close it with, “Doesn’t that sound reasonable?”
Plan B - What if all else fails?
If after all of these methods your employer is bound by “policy” to not pay overtime, you can either find another employer, or try Plan B.
When you can, aim for a monetary reimbursement for overtime. When this is not possible, try “Time Substitution”.
Time Substitution
Time Substitution (also known as Flexi-hours) is when an employee is able to take time off due to overtime accrued earlier. For many companies, this is common practice.
My experience with this alternative has not always been favourable. Companies are eager to “offer” time-off in exchange for working long hours, but not so eager to let you “take” the time-off. I have commonly been told “It’s a busy week, I need you here.” or “We’ve got a big client meeting next fortnight, you should be here in case we need to ask you something.”
You should only strive for time substitution as a counter-argument, if your employer refuses to pay you for overtime.
Approaching this in conversation is not always comfortable, so you can transition to it with:
“Okay. So you won’t pay overtime, and I won’t work for free. How about I work the hours needed, but can take that time off in the near future? That way, we both win. I can work the long shifts that you need, and I can tell my family and friends that I will have more time to spend with them the following week. Sound reasonable?”
A final thought
You will have noticed that the majority of this article was spent in asking for money, rather than going for the “Time Substitution” quick fix. There is two reasons for this. Firstly, I want to illustrate the importance of comfortably and confidently approaching these difficult subjects. Secondly, I want to discourage employers and employees from engaging in overtime.
Money talks. By bringing money into the conversation of overtime, employers are discouraged in increasing employee hours. Our civilisation is already overworked and suffering health consequences. If you are making such sacrifices for your employer, be sure that you are appropriately compensated.
If asking for reimbursement of overtime still makes you feel uncomfortable, think about what would happen if you started showing up to work an hour late and leaving an hour early. Would your employer talk to you about it? You bet! Yet, this is what happens to you everyday when you are not compensated for the hours you work. If your employer has the right to approach you, you have the right to turn the tables and do the same.
Please share this article with anybody that is in this situation, and is looking for some encouragement. I look forward to reading about your experiences, so please leave your feedback in the comments section.
Similar Articles
- Discussing Money at Work: An Introduction
- Discussing Money at Work - Part 1: Salary negotiation in a job interview
- Discussing Money at Work - Part 2: Negotiating a Pay Raise
- Voluntary Overtime: Goodwill? Good grief.
- Are you spending too much time at the gym?
- Is it wrong to be single?
- The Stigma of Occupational Prestige




That was an awesome article, Jay. I read something about how you should calculate your real wage using what you actually earn and how many hours you actually put in. I’ve been tallying up my data but I wanted to go a little longer before I do the calculation, so I don’t influence the outcome as much.
For me though, since we are constantly working on different projects, one way we deal with it is that if we get the same type of projects where overtime hour is expected again, we simply tell them to pay more or we’ll just pass on it. By now we generally have a good idea of what requires overtime and what does not.
Hi Jay, lovely article which resonates with my own experiences.
When I’ve been offered Time Substitution I always lock in a date for the substitution then and there. eg:
Employer: “Hey Joe, we’ve got a bit of an emergency can you come in over the weekend to fix it / help out?”
Me (after assessing how much effort is likely to be required): “Yeah sure! OK if I come in at / after lunch on Monday?” … I’ve never had a no.
Cheers,
J
It’s my understanding that Time Substitution is not an option in California. I live in Dallas, so this may not be accurate. But when I worked for an employer who had multiple office, including one in L.A., it was a big deal that support technicians could not work overtime (because the company didn’t offer payment for it), and could not time substitute.
Maybe a commenter from California can weigh in on the issue.
Jay, you should make your readers aware that there is a federal law known as the Fair Labor Standards Act (FLSA) which provides that an employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work.
Unless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay.
The overtime requirement may not be waived by agreement between the employer and employees. An agreement that only 8 hours a day or only 40 hours a week will be counted as working time also fails the test of FLSA compliance. An announcement by the employer that no overtime work will be permitted, or that overtime work will not be paid for unless authorized in advance, also will not impair the employee’s right to compensation for compensable overtime hours that are worked.
For additional information, readers should visit the U.S. Department of Labor’s Wage and Hour Division Website: http://www.wagehour.dol.gov and/or call their toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243).
Loved this one. I laughed. Your suggested responses were so naturally cool, and yet still so meaningful. Speaking from and for my own experience, your emphasis on asking for money beyond the quick fix has done it’s job for me on both fronts.
The focus on human value seems to be a common thread here and I really enjoy it. I’ll mentally keep this one to send on the next time it’s needed.
Also, I was meaning to ask. On what other subjects will you be writing communication articles? Anxiety, career, coffee… How about “Share uncommon personal beliefs comfortably.” I’ve been thinking about this one quite a bit lately.
Great article Jay! I’ll be sure to take it to heart as I start my career this fall.
Great idea for an article Megan, I hope Jay picks it up
Jay,
All of the tecniques that you mention are predicated upon having the confidence to know that you are valued enough for an employer to be willing to negotiate you. There are a lot of companies and managers who will just say ‘no’ to even to most conifidently aproached requests for additional pay/benefits, however fair. Lots of companies, particularly consulting companies, have business models based on the overworking and underpaying of young, ambitious people. None of these techniques will work for someone who isn’t ready, if all else fails, to find annother job or just walk if need be (which people should be ready to do a lot more than they are.) Otherwise, if you are called on it, you have nothing to back it up, and people seem to be able to tell when this is the case.