Three Tricks Employers Use to Avoid Paying Overtime Wages

The federal rules regarding employment compensation and overtime wages are outlined in the Fair Labor Standards Act (FLSA). The FLSA states that all covered employers must pay nonexempt workers 150% of their normal hourly wage for every hour worked over 40 in a week. Many employers not only fail to abide by this law but in fact, use specific strategies and tactics in order to save themselves money and avoid providing their employees with overtime pay. Sadly, people all over the United States are unknowingly being cheated of overtime wages that they have rightfully earned. Some strategies that companies use to avoid paying overtime wages include:

  1. Misclassifying workers: One of the most common tactics used by employers to avoid overtime pay is misclassifying workers under an “exempt” role. One way that companies achieve this is by labeling employees as “independent contractors.” Under FLSA rules, independent contractors are considered exempt from overtime pay, therefore employers can save the company money by classifying a salaried employee as an independent contractor.
  2. Requiring off-hour duties: If your employer gives you off-hour duties to complete, but you are not being compensated for this work, then you are most likely being cheated out of overtime wages that you have rightfully earned. These duties may include before-hour or after-hour meetings, mandatory training sessions, arriving early to put on a uniform or perform prep work, and staying late to clean up. If employers require any off-hour tasks, then they must properly calculate these hours into their workers’ overtime pay.
  3. Suggesting salaried workers are not eligible for overtime pay: Some employers will tell their salaried employees that they are not eligible for overtime wages, which is simply not true. Many employers and employees are unfamiliar with FLSA laws, but it is always important to know whether your position falls under “exempt” or “nonexempt.” If you are a nonexempt employee, then you must be paid for overtime work, regardless of whether or not you are on a salary.

Contact a Wage Claim Attorney

If you believe that your employer is cheating you out of the overtime pay that you deserve, contact Williams Kherkher today. One of our experienced attorneys will be able to guide you through the process of filing a wage claim and fighting for compensation. To speak with a member of our legal team, contact us today by calling (888) 262-9002.