Overtime refers to

• A. A rate of pay below the normal rate
• B. A fixed salary per month
• C. A rate of pay above the normal rate to compensate employees for working extra hours
• D. A rate of pay at the normal rate

Answer: (C)

Overtime is pay for hours worked beyond the usual working time, and it’s paid at a higher rate than the normal wage to compensate employees for extra hours. This higher rate recognizes the additional time and effort and can help cover peak demand or staffing gaps. The other ideas—being paid below the normal rate, a fixed monthly salary, or the normal rate—don’t reflect extra compensation for extra hours.