Common Scams In Overtime Pay

Common Scams In Overtime Pay

Oct 16

An employee who renders overtime work is entitled to be compensated for such. The Fair Labor Standards Act provides rules that employers must follow when paying their employees. This law defines what an overtime pay is, when employees must be paid an overtime rate, and who is eligible for overtime pay. Overtime pay lawyers will tell you that some employers use deceptive and illegal tactics to avoid paying overtime pay. Here are some examples of the common scams used by employers:

1. Misclassification

Employers often change the classification of employees from non-exempt to exempt to avoid paying overtime wages. They often give them titles such as “manager” or “supervisor” and claim that such positions is exempt from overtime pay.

2. “Off the Clock”

IN addition, employers often demand that their employees work “off the clock” after rendering 40 hours of work in a week so are exempted from paying overtime pay. Likewise, they refuse to pay their employees for legally mandated breaks or force workers to clock out when they eat at their stations and go on a working break.

3. Miscalculating Workweek

By definition, a workweek consists of 7 consecutive days, regardless of which day is the start of the week. Some employers calculate the average hours worked over a number of weeks to avoid paying overtime.

4. Pre-approval

Another tactic employers use to avoid paying overtime wage is to require employees to seek prior approval for overtime before they are paid.

5. On-Call Work, Meetings, and Take Home Work

Employers do not consider on-call work, work-related meetings, or take home work as overtime hours and hence will not pay their employees overtime pay when engaging in these kinds of work.

These are just some of the common practices that employers utilize to avoid paying overtime wage. If you had been denied your overtime pay, you have the right to sue your employer.