Employees deserve reasonable wages for the time they put in on the job. If they put in more hours than the average 40-hour week requires, then they might be eligible for overtime pay. Overtime wage laws prevent companies from abusing their workers by demanding excessive time on the job without additional pay.
The obligation to provide hourly wages at 150% of someone’s typical rate can deter companies from scheduling workers too often or for too long. Unfortunately, many businesses might try to work around these laws by manipulating and tricking their workers. They may refuse to pay overtime wages when their employees technically deserve them. The following are some of the most common tactics companies utilize to avoid overtime wage responsibilities.
Paying a low salary
People generally assume that a worker paid on a salary basis is exempt from overtime rules. While that is true sometimes, is not universally true. A salary has to meet certain minimum standards for an employee to be exempt. The minimum salary requirement actually increased in July of 2024 and increases again at the beginning of 2025. Workers paid less than the minimum salary still deserve overtime wages.
Abusing a no-overtime policy
The extra cost of paying overtime wages can diminish a company’s profits. Some organizations try to avoid paying extra to workers by implementing a no-overtime policy. Such rules are completely legal provided that the company does not allow workers to put in more than 40 hours per week. Some employers refuse to pay for overtime after scheduling workers for more than 40 hours or having them stay late when someone else calls in sick. Even if the company requires approval for overtime, a worker is entitled to appropriate pay when they put in the time.
Expecting off-the-clock work
Hourly workers have a right to pay for time worked. Companies sometimes try to manipulate workers into unpaid work or availability. For example, a trainer might tell a restaurant worker that they have to do their prep work before they begin their shift and clock in for the day. Other times, employers might demand that workers remain on call or on standby over the weekend without compensation. Some businesses even require that workers handle company emails or social media accounts while they are technically not on the clock.
Employment practices that demand that workers do job tasks without compensation may be a violation of those workers’ rights. Pursuing a wage and hour lawsuit can potentially compensate workers for overtime they’ve performed but have not received pay for as they should. Employees who know their rights can more effectively recognize when a company has violated them.