Common Overtime Pay Violations

Each individual department in the workplace has their own respective goals to meet. There are instances when the regular working hours is not just enough to meet their target. As a result, the employees need to work overtime with the authority of their managers of course. After rendering the extra hours, the bad news is that they may end up not being paid their overtime pay.

The website of Habush Habush & Rottier S.C. ® reveals that employers devise several ploys to keep themselves from paying overtime pay. They use their employees ignorance of overtime laws to work their way around and deny employees of their overtime pay. Here are some of the tactics that employers use to avoid payment of overtime pay:

  1. Classifying Employees As Independent Contractors
    Employers are aware of the Fair Labor Standards Act (FLSA) which disqualifies independent contractors form receiving overtime pay. This way, aside from not paying employees overtime pay, employers are also exempt from paying state and Federal taxes for independent workers. However, if the employee works 40 hours weekly, they are really entitled to receive overtime pay.
  2. Paying employees straight time
    Rather than pay their employees 1.5 times their regular rate, employers make their workers as hourly paid employees.
  3. Unauthorized Overtime
    Employers will tell employees that their overtime was not pre-approved by their superiors and hence have the grounds not to pay overtime pay. The law requires employers to pay employees for the excess of 40 hours per week if there was prior approval.
  4. Employers classify their workers as commissioned employees
    The first thing that an employer will tell their employees is that they are “commissioned” and hence not entitled to overtime pay.
    These are just some of the ways that employers use in not paying their employees with overtime pay.

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