How do you control overtime in a restaurant?
Preventive scheduling
Start by forecasting sales and scheduling staff to match. Aim to keep most employees under 40 hours per week unless you plan for overtime. Use a scheduling tool that tracks hours in real time so you can see who is approaching overtime before it happens.
Stagger shifts and use part-time workers to cover peaks. If someone calls out, first ask for volunteers to leave early or shift swaps rather than automatically calling in someone who will hit overtime. In some states, you must pay overtime after 8 or 12 hours in a day, so check local rules.
- Set a weekly hours cap for each employee (e.g., 38 hours).
- Review hours daily and adjust next shifts if needed.
- Use a POS-integrated scheduling system for real-time tracking.
- Cross-train so you can move staff between roles without adding hours.
Managing overtime when it happens
Sometimes overtime is unavoidable, like during a sudden rush or a key employee's absence. In those cases, authorize it in advance and track it. Consider offering comp time only if legal in your state; federal law generally requires overtime pay for hours over 40 in a workweek for non-exempt employees.
Analyze overtime patterns monthly. If one shift or department consistently runs overtime, adjust staffing or processes. For example, if the closing crew always stays late, look at closing procedures or add a dedicated closer.
Common mistakes
- Letting employees clock in early or stay late without approval, which adds unplanned overtime.
- Ignoring daily overtime rules in states like California, where overtime applies after 8 hours.
- Assuming salaried employees are exempt from overtime; many restaurant roles are not.
