What does the term 'overtime wages' refer to?

The term 'overtime wages' specifically refers to compensation for work performed in excess of the standard 40 hours per week. In many jurisdictions, including under federal law in the United States, employees who work more than their designated hours are entitled to receive a higher rate of pay, typically one and a half times their regular hourly wage, for those additional hours. This is a protective measure to ensure employees are fairly compensated for the extra time they dedicate to their work.

In contrast, payments for work on holidays may involve different rules and is not inherently classified as overtime unless it falls under the criteria of exceeding the standard workweek threshold. Salary increases based on performance reflect merit-based raises rather than compensation tied to hours worked. Similarly, bonuses for meeting sales targets are forms of incentive pay that reward specific achievements but do not pertain to hourly work beyond the regular schedule. Thus, the focus of overtime wages is solely on the increase in compensation related to hours worked over the standard workweek.