One of the most consistent things I’ve seen looking at overtime data is that organisations don’t actually have a clear way of separating overtime that genuinely adds value from overtime that just… happens. Claims that get approved, get paid, and sit there looking completely reasonable. And that’s
When businesses calculate the cost of overtime, most only look at the hourly rate × hours worked. They forget one very expensive line item: superannuation. In Australia, the Superannuation Guarantee (currently 12% as of 2026) must be paid on most overtime hours. That means every dollar of overtime you pay triggers
The 2025 Protecting Penalty and Overtime Rates changes are now law — and they matter for every government agency. What you need to be doing in 2026: * Ensure your modern award or enterprise agreement aligns with the new protections (no reductions or disadvantageous substitutions allowed) * Review overtime policies to explicitly consider
Fire, ambulance, and corrections services face some of the highest overtime pressures in the public sector. Recent audits have repeatedly shown the same issues: * Excessive reliance on overtime to cover chronic understaffing * Weak controls during peak emergency periods * Fatigue-related safety risks from back-to-back shifts * Significant financial leakage from poor verification
Surprise overtime blowouts destroy budgets and credibility. Accurate forecasting requires four simple steps: 1. Analyse 12–24 months of historical overtime data by department and shift 2. Map demand patterns against known events (holidays, major projects, seasonal peaks) 3. Build in buffers for genuine emergencies — but not for poor rostering
Many agencies are shocked to learn their own payroll software is creating overpayments. Common system errors we see include: * Incorrect overtime formulas that ignore the true “regular rate” of pay * Automatic calculation of overtime before proper approval workflows * Failure to flag hours that should be treated as straight time * Legacy
Internal reviews often focus on “Did they get approval?” — but that only catches the obvious cases. A professional overtime audit looks much deeper for the hidden patterns: * Recurring overtime on the same shifts or by the same individuals * Claims that fall just under approval thresholds * Payroll system calculation errors * “Buddy”
Overtime isn’t just a budget issue — it’s a safety and wellbeing issue. Research shows shift workers (especially in police and healthcare) have more than double the injury rate of non-shift workers. Extended overtime leads to: * Reduced decision-making ability (equivalent to legal alcohol impairment after 17 hours awake) * Higher
Every year agencies promise to “get on top of overtime” — yet the numbers keep rising. The most common reasons budgets blow out are: * No single source of truth for real-time overtime data * Managers approving overtime as an easy fix for understaffing * Poor forecasting of peak demand periods * Lack of visibility
The Fair Work Act was significantly updated in late 2025 with the Protecting Penalty and Overtime Rates Act. Key points every public sector leader must understand: * Overtime is payable for work performed outside the ordinary hours set in your modern award or enterprise agreement (usually at 1.5× or higher)
Public sector leaders are under constant pressure to deliver more with less — yet overtime remains one of the fastest-growing budget items. The good news? You can reduce overtime spend significantly without reducing frontline services or staff morale. Here are the proven strategies that actually work: * Implement clear overtime approval policies
The problem extends right across all industry sectors: * Metropolitan Transport Authority (US): Internal review identified over $1 million in unsupported overtime payments. * San Francisco Municipal Transportation Agency: Up to 40% of the agency’s $25 million annual overtime budget lacked adequate documentation or verification. * New York City Department of Environmental