Overtime Scams

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Scams Employers Use to Avoid Paying Overtime

According to the Fair Labor Standards Act (FLSA), eligible employees must receive time-and-a-half pay for hours worked over 40 in a single workweek. Still, many employers violate this FLSA provision, either intentionally or unknowingly. When an employer deliberately denies a non-exempt employee overtime pay, an overtime scam may be occurring.

If you suspect you have been subjected to an overtime scam, fill out our free, no obligation case review form. At no cost to you, our overtime lawyers will determine whether you can recover unpaid wages.

Employee Misclassification

Misclassifying employees into “exempt” categories is a common scam employers use to avoid paying overtime. They may give an employee a certain title, such as a manager, to trick the employee into thinking they are not eligible for overtime pay. However, a worker’s job duties, not their job title, determine overtime pay eligibility.

Working Off the Clock

Working off the clock occurs when an employer requires an employee to perform work before clocking in or after clocking out. Many employers attempt to justify this overtime scam by telling the employee that they should have finished their job earlier. However, an employee should be paid for all of their time spent working, regardless of whether they are clocked in.

Short Changing Hours

Many employers fail to include 5 to 20 minute breaks in their employees’ pay. Likewise, employers often exclude travel time, training time and other time that should be counted as hours worked.

Paying Regular Rate for Overtime

Non-exempt employees who work overtime should be paid at a rate of time-and-a-half of their regular rate. Therefore, employees making $10 per hour should be paid $15 per overtime hour. Paying non-exempt employees at their regular rate for overtime hours is a violation of the FLSA.

Comp Time

Employers who give employees “comp time” instead of time-and-a-half pay for overtime hours may be violating the FLSA. For example, a non-exempt employee works 50 hours one week. However, instead of paying him at a rate of time-and-a-half for 10 hours of work, the employer only makes him work 30 hours the next workweek. This averaging of workweeks is considered illegal under the FLSA.

If you have fallen victim to one of these overtime scams, fill out our free case evaluation form. Our overtime attorneys will evaluate your claim to determine whether you are eligible for an overtime lawsuit.