Many times, an employer will have specific guidelines surrounding payment for time worked over a certain amount. Typically, anything over 40 hours worked in a given week is considered overtime. Most of the time, employers will pay time and a half (Regular rate x 1.5). Overtime policy is there to ensure employees are compensated fairly for working more than their normal hours in a work week. Overtime policy set by an employer can also control the amount of overtime hours and employee can work so that they can ensure they are not paying out too much for payroll in a given period. At times, a company might fall into financial issues and might need to eliminate overtime altogether. Typically, there are labor laws that contain provisions about overtime policy. Usually, these laws require employers to pay their employees appropriately for any hours worked over 40. Employers found in violation of these laws could be punished in a court of law.