Finding the Balance in Mandatory Overtime

If you are a non-exempt employee who has worked beyond your decided weekly hours, those added hours are considered overtime; and are to be compensated at a higher rate than your regular hours.

At some point in your career, you will likely find yourself working overtime for one reason or another. Some companies offer more overtime than do others, whether on a consistent or variable basis.  Yet, other companies prefer to include overtime in the hiring agreement, informing employees that mandatory overtime hours are part of the job description. Still, there are certain companies that frown upon overtime, and only offer it in extreme cases.

Weekly time sheet

Reasons for Overtime

Depending upon the type of organization, industry, and its individual business practices, the reasons for overtime can greatly vary.

The most common reason for working past sign-out time is to increase production. Perhaps, there is an unusually large order that must be shipped to an important customer within a short period of time, but production and processing has not yet been completed. In order to meet important deadlines, companies will require that employees put in extra time with an incentive of increased pay until the project is completed when original schedule hours can resume.

According to the FSLA (Fair Labor Standards Act), all U.S. employers are generally required to pay their waged non-exempt employees one and a half or two times their base salary for any hours exceeding a 40 hour work week.

The Federal government does not recognize overtime on weekends or holidays unless the employee has worked more than 40 hours within that week. Certain overtime specifics may vary slightly based upon the labor regulations of the state in which you work.

Employer’s Perspective: Pros and Cons

One obvious business advantage is an increased level of production. Overtime assists in bridging work gaps due to absences or leaves, helping companies avoid hiring temporary staff. Overtime hours can also be utilized to conduct routine maintenance and repairs to avoid inconvenient delays during regular work hours or peak production times. Another benefit is that employees can complete their regular responsibilities during business hours, while using overtime hours for special projects and assignments that don’t necessarily need to be completed during the 9 to 5.

However, extended or long-term overtime can also sometimes create a significant dent in a company’s budget, especially when an already amply compensated employee accumulates numerous overtime hours. When monetary issues arise in general, organizations often find themselves tightening the overtime reigns or even discontinuing it altogether.

In addition to financial issues, another concern to organizations is that too much overtime can cause employees to become overworked and depleted, possibly resulting in extra sick days or unsafe work practices.

Employee’s Perspective: Pros and Cons

While some may express dismay at the thought of working longer hours, many employees look forward to overtime for two very distinct reasons: Increased pay and the opportunity for company advancement. Agreeing to work overtime hours is one way for employees to showcase their abilities and willingness to contribute to the overall success of the organization. However, employees do need to use caution by retaining permission, making sure that their particular overtime is accepted by management.

While the extra income earned through overtime is certainly a positive aspect, employees must be sure not to burn the candle at both ends. Even with the best of intentions, there is always the risk of exhaustion from working too many consecutive hours, not to mention that more time at the office means less time at home with family and loved ones. Health and overall quality of life are two important considerations when contemplating taking on large quantities of overtime.

Time Money Signpost Shows Hours Are More Important Than Wealth


Mandatory overtime hours are a blessing and a curse to both companies and employees. In a fast-paced workforce like today, companies struggle to keep up with their competitors, and employees struggle to find time to spend with their families. Balancing the amount of overtime worked with production overload would be beneficial to all. Nevertheless, employees should always refer to their own state regulations to confirm which overtime laws apply to them.


Fred Coon, CEO


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The Novice’s Guide to Life Planning: How to Preserve Your Children’s Future

No matter what age you become a parent, you may not have given much thought to life planning before having children. However, when kids enter the picture, preserving their future becomes a major priority. Still, most parents aren’t all that knowledgeable on what life planning entails; the important legal documents to get in order, and the other steps they can take to preserve their children’s future. If this sounds like you, this novice’s guide to life planning outlines exactly what you need to know to get started.

Life Planning - Family_house graphic

Life and Disability Insurance

Life and disability insurance are never more crucial than when you become a parent. Raising children is costly, and should you become disabled and unable to work, disability insurance is a lifeline that makes it possible to continue providing for your family’s needs. Additionally, a good life insurance policy is a safeguard that provides a financial means to ensure that your children are cared for, should an accident or illness take your life before they reach adulthood.

Advance Directives

Few things are more devastating than having to make the decision of whether to continue life support for a parent or other family member who has suffered serious injury. To spare your children from having to make such difficult decisions, parents should prepare advance directives that specify precisely what heroic measures you wish to receive under varying medical conditions, such as a persistent vegetative state or irreversible coma. Specifically, advance directives serve to communicate your wishes regarding treatment in circumstances in which you’re no longer able to communicate.

Last Will and Testament

Advance directives are also called living wills, not to be confused with a traditional will, or Last Will and Testament. Your “last will” outlines who will inherit your property and other assets after your death, can designate guardians for minor children, and designate financial guardians to oversee financial assets to be used in providing care for your children until they reach a specified age. Both living wills and last wills are essential legal planning documents for parents.

Deeds and Trusts

Deeds and trusts are other legal and financial measures designed to streamline the transfer of property and other assets from you to your children, following your death. Inheritance outlined in wills must almost always go through a process known as probate, a time-consuming and expensive legal process that can hold up the transfer of assets following a person’s death. As such, more families are opting for tools like Quitclaim deeds and irrevocable living trusts to facilitate the transfer of property and the oversight of finances for the benefit of their children, both in the case of inheritance and other instances, as well.

Retirement and College Savings

Personal finance experts suggest having multiple savings accounts for your various financial goals, such as separate accounts for retirement savings and savings for your children’s college education. There are a variety of tools and account types that can be used for either purpose, ranging from 529 College Savings Plans for college savings to the traditional 401(k) and IRA for retirement savings.

While there’s no one right answer for every family, you should take the time to evaluate your finances, weigh your options, and set up a savings plan that builds a nest egg for retirement and start saving for your children’s college education early.

Life Planning - Father and Child

In Summary

It’s far too easy to neglect saving when faced with the day-to-day costs of raising children, so make savings a priority to build a strong financial foundation. Likewise, young parents may not consider the potentially devastating consequences of unforeseen illness or a tragic accident and the financial ramifications these events could have on their children’s futures. Even if you’re a life planning novice, implementing these essential steps will give you peace of mind in knowing that you’ve protected your children’s future to the best of your ability.

by,  Jackie Waters ,    Fred Coon, CEO


Stewart, Cooper & Coon, has helped thousands of decision makers and senior executives move up in their careers and achieve significantly improved financial packages within short time frames. Contact Fred Coon – 866-883-4200, Ext. 200


Comprehending FMLA: A Basic Guide to the Family and Medical Leave Act

What is the Family and Medical Leave Act?

fmla-work_life-puzzle-piecesEven the most dedicated employees find themselves in situations where they must balance work and personal responsibilities, requiring them to take a reasonable period of unpaid leave.  This approved absence is referred to as the Family and Medical Leave Act (FMLA), and is designed to accommodate the rightful interests of employers and employees alike.

Public agencies, schools, and companies with 50 or more employees within a 75 mile radius, must offer eligible workers up to 12 weeks of unpaid leave without a break in employment.

FMLA was officially put into practice in 1993 to initially help workers find stability between the pressures of their job and the necessities of their families, and to encourage and protect the overall economic security and integrity of families in the U.S.  Additionally, FMLA shelters employees by disallowing employers from denying, preventing or obstructing any of the rights that the law provides, as violations are dealt with directly by the Department of Labor.

What qualifies an FMLA leave of absence?

  1. Medical leave for serious health condition where employee is unable to work
  2. Birth and care of an employee’s newborn child (time taken off for pre-birth complications can be applied to the 12 weeks of FMLA)
  3. Adoption or foster care placement of a child with an employee
  4. Caring for an immediate family member (child, spouse, or parent) with serious illness or medical condition

Which employees are eligible for FMLA?

If your reason for requesting an extended absence falls within the four approved categories and you work for an organization who is FMLA qualified, you are eligible to apply for leave as long as you have worked for your employer for a minimum of 12 months.  Furthermore, you must have worked for at least 1,250 hours during that 12 month period.

Further Entitlements

FMLA requires that an employee’s group health benefits are continued and paid for by the employer through the 12 week duration; however the employee is also still required to pay his or her insurance premium contributions during this time as well.  Upon cessation of the twelfth week of leave, FMLA entitles employees to immediate reinstatement of their job in either the same or corresponding role.

Moreover, qualified workers also have the right to choose blocks of time for FMLA leave, alternating between traditional employment and approved leave, or in certain situations, as part of a reduced schedule of daily hours.

soldiers-marchingMilitary Specifications

As of January 16, 2009, a new and final ruling updated FMLA directives to apply new entitlement for military family leave, under the National Defense Authorization Act for FY 2008.  Furthermore, an employee who is caring for a covered service member with a serious illness or injury is entitled to 26 total weeks of leave.

Employer Obligations

  • Organizations covered under FMLA are required to post a notice describing the rights of employees under the FMLA program, as well as provide all new employees with written information on FMLA.
  • When an employer is made aware that a worker will be taking a qualifying leave of absence, they are to make the employee aware of their rights under FMLA law, and supply them with an official eligibility notice, explaining the employee’s responsibilities and rights under FMLA.
  • Employers must also make workers aware of their total allotment of time, and the exact allocation that will deducted from the employee’s total FMLA reserve. This can apply to employees taking shorter leaves, rather than the entire 12 week period.


Understanding the basic elements of FMLA, its reasons, allowances, as well as limitations, will help both employers and employees ensure that the needs of working organizations are in balance with the lives of their actual workers.  While employers must have a zero-tolerance level for abuse of FMLA services, employees must advocate for fair and consistent treatment through the protection of FMLA laws.



Fred Coon, CEO


Stewart, Cooper & Coon, has helped thousands of decision makers and senior executives move up in their careers and achieve significantly improved financial packages within short time frames. Contact Fred Coon – 866-883-4200, Ext. 200