Mandatory Overtime Advantages and Disadvantages

             Mandatory overtime is the practice of requiring workers to work longer
             hours than the standard 40-hour workweek. It is not always a popular
             practice. Some workers welcome the overtime as a chance to add to their
             wages, while others resent having to work longer hours and spend more time
             away from their families and friends. Currently, mandatory overtime is
             allowable on the assembly line, and it is used when production shortages
             occur, or there is a higher than average demand for parts and finished
             product. Michigan state law states, "There is no law prohibiting mandatory
             overtime or work on a Saturday, Sunday, or holiday" (Michigan.gov, 2003).
             The new Department of Labor (DOL) guidelines issued last month require
             overtime pay for hourly employees. Any exempt employee that makes $23,660
             or more can be exempt from overtime pay (Smith, 2004). Thus, overtime pay
             is still used for hourly workers, but it would make more sense to create
             more exempt salaried positions, and require overtime as necessary from
             Mandatory overtime is necessary for a variety of reasons, but normally
             it occurs during peak busy periods, when shortages occur, or when certain
             parts or finished products are required in a hurry. Sometimes these surges
             in production can be predicted and shifts altered accordingly, but at other
             times, the surges are simply unpredictable, and mandatory overtime is a
             necessity. It is much more cost effective to require mandatory overtime
             rather than creating new positions. At times, those positions could be
             surplus and so eliminated. In addition, new employees require training and
             ramping up time, while experienced employees already understand their jobs
             and the needs of General Motors. Therefore, hiring more people to cover
             during busy times is not practical or cost effective. Utilizing employees
             who are already employed eliminates the need for training, hiring costs,
             ...

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