Reducing the cost of employee salaries and benefits by even a small percentage can result in significant savings.
Employee salaries and benefits, including pension benefits, are large expenses for New York's local governments and school districts. These costs represent nearly 57 percent of annual budget expenditures, on average.
Overtime wages can significantly increase personal service1 and pension costs. For example, 8 to 30 percent of wages paid to highway employees in New York State are for overtime.
A written plan to guide the assignment of overtime hours in the most efficient and effective manner can help control overtime costs. When local governments and school districts analyze the factors that lead to overtime, they may be able to reduce or eliminate overtime through the use of alternate work schedules.