Common Overtime Violations

The Fair Labor Standards Act clearly points out that employees who render overtime work should be paid at 1.5 times the regular pay rate based on the following conditions : 1) between 8 – 12 hours per day; 2) over 40 hours a week; or 3) the first 8 hours of work on the 7th consecutive workday in a workweek. Likewise, they should be paid twice the regular pay rate whenever they work 12 hours a day and more than 8 hours on the 7th consecutive day of work in a week.

The website of Williams Kherkher reveals that many businesses routinely deny workers of the overtime pay they are entitled to. They devise a variety of ways to escape from paying overtime wage. In this article, we shall look at the common overtime violations:

Miscalculating the number of overtime hours worked. Employers will tell employees to work in 8-hour shifts. However, they will require workers to be at their place of work 15 minutes before their schedule without paying them for that time. Arriving 15 minutes before their shift should have entitled employees to 15 minutes overtime pay since they will work 8 hours and 15 minutes.

Claiming that the overtime work was not authorized. Under the law, overtime wage should still be paid regardless of whether it was authorized or not or even if it is the written policy of the company that only pre-authorized overtime will be paid.

Miscalculating the overtime pay rate. There are several ways that overtime can be miscalculated. One example is when employers use more than one pay rate but use the lowest pay rate for computing overtime. Likewise, they do not include commissions, non-discretionary bonuses, and other forms of pay in calculating overtime rate.

Misclassifying employees as exempt and paying them salary . Only a small percentage of the workforce is exempt from overtime laws. State and Federal laws have specific requirements for classifying employees as exempt.