Ways Employers Avoid Paying Overtime

The U.S. Department of Labor's Wage and Hourfor overtime pay. However, federal overtime law
Division receives numerous complaints every yearstates that an employee's job duties, not their job
from employees who were wrongfully deniedtitle, is the main factor in determining who can
overtime pay. While some employers violatereceive overtime pay.
federal overtime law without intention, othersFor instance, employee misclassification commonly
purposefully deny overtime pay to eligibleoccurs when an employer labels a worker as an
workers. By using common overtime scams,"independent contractor" to avoid paying
employers cheat their workers out ofovertime. However, if the worker does not meet
time-and-a-half compensation for overtime hours.the test for determining independent contractors,
Luckily, many common overtime scams havethey may be eligible to collect overtime pay for
been identified so that workers can fullyhours worked in excess of 40 in a single
understand their rights to overtime.workweek. Another common example of
A common overtime scam, working "off theemployee misclassification is labeling workers as
clock" occurs when an employer forces an"managers" without allowing these employees the
employee to work without being clocked in. Foropportunity to perform any managerial duties.
instance, an employer may instruct a worker toPaying straight time instead of time-and-a-half
clock out and remain on the premises tocompensation is another common overtime scam.
complete the tasks they should have finishedFederal overtime law states that non-exempt
during the day. In another example, an employeremployees should be paid 1.5 times their regular
may require their employees to work on therate when working more than 40 hours in a single
weekends without being clocked in. In general,workweek. For instance, if an employee is usually
workers can identify and avoid this commonpaid $8 per hour, they should receive $12 for
overtime scam by understanding that time spentevery hour of overtime. Paying non-exempt
working for an employer should be considered asworkers less than 1.5 times their regular rate for
hours worked for the purpose of calculatingovertime hours is a violation of overtime law.
overtime pay, regardless of whether theThese are the most common forms of overtime
employer wants the worker "on the clock."scams. Other scams include short-changing hours
Employee misclassification is another common(not including short breaks in an employee's total
overtime scam. Misclassification occurs when anhours worked) and providing "comp" time instead
employer intentionally misclassifies a worker intoof overtime pay. By informing yourself on the
an exempt category; they trick the worker intobasics of overtime law, you can help ensure you
thinking that their job title makes them ineligibledo not fall victim to an overtime scam.