When should adjusted pay include overtime hours?

Adjusted pay should include overtime hours primarily when those hours are worked on a regular basis. This approach aligns with standard practices in many industries, where consistent overtime reflects a regular commitment to additional hours beyond a standard workweek. It acknowledges the ongoing nature of the work and is a fair representation of the employee's actual effort and compensation.

Incorporating only regular overtime ensures that adjusted pay reflects realistic expectations and patterns of work behavior, which is essential for accurate payroll processing and avoids confusion or disputes regarding compensation. It also helps employers manage their payroll budgets better since regular overtime is easier to predict compared to sporadic or variable overtime that might occur due to seasonal demands or specific projects.

Other considerations, like employee requests or high-demand periods, do not uniformly dictate the necessity for including overtime in adjusted pay, as these situations can be inconsistent and not indicative of the employee's overall working pattern.