- Increased Labor Costs: Overtime can significantly increase labor costs for the company, leading to budget overruns and reduced profitability .
- Employee Burnout: Excessive overtime can result in employee burnout, decreased job satisfaction, and higher turnover rates, impacting overall workforce morale and retention .
- Quality and Errors: Working long hours can lead to fatigue and reduced concentration, potentially compromising the quality of work and increasing the likelihood of errors .
- Legal Compliance Risks: Failure to comply with labor laws and regulations regarding overtime pay can expose the company to legal risks and financial penalties .