Amazon Overtime Pay 2023 (Everything Explained)

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Amazon has been famous for its innovations. It’s expounding at an enormous pace and needs more and more staff to work in the company with time more than the previous. This requires Amazon to pay concentration to new and innovative policies regarding employees’ work. It did so. Let’s talk about Amazon and its Overtime. Amazon is a giant and leading retailer in the market of digital revolution. It has been selling to millions of customers. Millions of employees are needed to work in the company to cope with those customers. It has been hiring new employees and innovating previous policies. Here is a new policy named overtime pay policy. Let’s consider its pros and cons.

Amazon Overtime Pay Policy

In 2016, a new policy was presented to the world regarding the salary and wages of employees. The hourly minimum average salary at Amazon is $17.76. A new policy required that employees who want to work overtime must have been working 40 hours per week. Then they will be able to get overtime. Salaried employees are exceptions.

Who is eligible to get overtime pay?

This is an eligibility criterion set by Amazon to avail of this policy. Employees must work 40 hours per week to be eligible for overtime.

  • They can work overtime up to 60 hours a week.
  • Amazon sets the boundaries for those who want to work overtime. These employees must be working 40 hours a week. 
  • The employees who wish to pay overtime must be non-salaried. Salaried employees are exempt in this case.
  • Salaried employees have to earn $47476 per annum. Hitherto, this policy requires them to make $50440 per annum.
  • Employees are eligible for the new policy regardless of the hourly wage. Full-time and part-time employees are eligible to work overtime.

How much does Amazon pay for overtime?

The overtime pay counts as 1.5 of the actual payment. As the average minimum hourly wage at Amazon is $17.76, after working an hour for overtime, this will become $26.5 per hour. This policy applies to all employees, whether salaried or non-salaried.It covers hours worked in a week on weekdays and weekends.

What will happen if I fail to follow the overtime schedule?

The company usually employs a tolerance policy. Yet these might be flexible time schedules set by the HR or manager of the company who relieves you. But if you miss the overtime schedule, you cannot be compensated. You will earn according to the time you work. Usually, Amazon shifts the schedule to the last minute to accommodate the previous order. This case might be inconvenient for the employees.

So they must prepare themselves for this tiring schedule. Some managers may look more lenient towards this policy and may compensate you. That entirely depends on the management of that respective store. 

Mandatory Overtime Pay 

If you have to work mandatory overtime, it will not compensate its workers when they are already full-time employees. This company is infamous as you will not be compensated if you have to leave for personal care or to do some other important task. Not working overtime carries a benefit that your paid time off will not be counted in this case.

What are the maximum hours for overtime?

Traditional and average time to work extra is 10 hours per week. Employees working part-time in the store can work as many hours as they want. But that limit is up to 60 hours per week. Employees who work 40 hours per week can work up to 20 hours extra in the company each week.

Overtime on Prime Day

Amazon employees have to work on weekends, seasonal sales, and holidays. This overtime period is mandatory. They are also given different bonuses and perks.

Bottom line;

In 2016, Amazon introduced a policy to work overtime. Employees can earn more than 1 and a half of the actual salary by working this period. Salaried and nonsalaried staff are eligible to work extra time and make more pay. Full-time, part-time, and contractors are suited to this offer by working up to 60 hours a week.

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