Overtime Violations

Unless you are an “exempt” worker, your employer must pay you overtime wages for any hours worked over 40 hours in a workweek. The employer must pay at least one and one-half times (150%) your regular hourly rate for all overtime hours worked.

Employers cannot avoid paying employees overtime by enacting a no-overtime policy or by getting employees to agree to a special deal. Employers must follow the law, which mandates that they pay employees time and a half for all hours worked over 40 in a week. Some common violations of overtime law are:

Unpaid or Wrongly Calculated Overtime Pay
If you are a non-exempt employee, overtime rules are generally based on a single workweek. Your employer may pay you a number of ways: weekly, bi-weekly, or monthly. However, your employer must calculate overtime on the actual 40-hour workweek; the pay period does not matter. Your employer cannot get you to agree not to follow the overtime rules by averaging hours over two or more weeks.

Compensatory Time vs Overtime Pay
Compensatory time is a system by which an employer may grant paid time off to an hourly employee instead of paying overtime wages.  This system is often referred to as “comp time.”  For example, an employer must offer comp time to be taken later rather than paying overtime wages. Comp time can sometimes be legal, but the employer must pay it at 150%, the same rate as overtime wages.

Prohibiting Reporting Work over 40 Hours Per Week
Some employers have rules that no overtime work will be permitted or paid for unless authorized in advance.  Some employers choose to ignore when hourly employees work overtime or do not allow employees to report overtime hours. This practice violates the Fair Labor Standards Act.