Overtime pay is an important concept in human resources and payroll management. It entails paying employees a higher rate of compensation for working more hours than their standard scheduled work hours, which typically is set by either company policy or labor laws. For example, in many jurisdictions, employees are entitled to time-and-a-half pay for any hours worked over 40 hours per week. An organization calculates this by multiplying the employee's regular hourly rate by 1.5 and then multiplying that by the number of overtime hours worked. For example, if an employee earns $20 per hour and works 5 hours of overtime in a week, they would earn 20 * 1.5 * 5 = $150 in overtime pay. By compensating employees for extra work, overtime pay helps organizations meet scheduling demands while providing fair remuneration.