Level $1$ employees are semi$-$skilled workers that qualify for overtime. Level $1$ employees perform direct production of your product or service.

Productivity starts at $200$ units per worker. As productivity increases, fewer Level $1$ employees are needed, which can reduce hiring and compensation costs. If you do not have enough workers to meet the production quota, or insufficient training lowers productivity, employees may have to work overtime to make the units required. In that case, there will be an overtime charge, increasing unit labor costs for the quarter.