Creating an Overtime Policy is important for companies that want to manage their workforce efficiently. An Overtime Policy clearly explains when and how employees can work extra hours and get paid for them. It ensures fair treatment and prevents any kind of confusion regarding overtime payments. A good Overtime Policy also promotes work-life balance by setting limits on extra hours. Employers should communicate their Overtime Policy to all employees to avoid conflicts. An updated Overtime Policy will also ensure compliance with government regulations. It helps businesses protect their reputation and maintain employee satisfaction.