While this is the standard method of wiring the overload contact into the circuit, I see nothing in the NEC that permits the switching of the grounded conductor. If the overload is factory wired as part of a listed starter, the NEC would not apply, but if you are building a control system with panel mount overload relays then the NEC would require that you wire the overload relay contact on the ungrounded side of the control circuit. Some engineers specify that the overload relay contact be on the hot side of the control power circuit, and I recall someone telling me that all GM plants have the OL relay contact on the ungrounded side. Starters are available wired this way, but they are special order.
Don