Overtime is an opportunity for professionals to increase their take-home pay. Hourly workers and non-exempt salaried employees are typically eligible for overtime pay if they put in more than 40 hours in a specific workweek.
Federal law requires that employers provide 150% of a worker’s standard hourly wage when they work overtime. Employers have certain rights related to overtime wages. For example, they can decide when the workweek technically begins and ends. They can also choose the frequency with which they pay their workers.
Employers have the right to mandate overtime if they need workers to stay late after their shifts or work on their days off. Do they also have the legal right to refuse to provide overtime pay for employees?
Time worked requires payment
Businesses do not need to allow workers to put in overtime hours. Employers can control when they schedule their workers.
So long as management identifies overtime shifts before they occur, the company has every legal right to refuse to allow workers to put in more than 40 hours. Sending an employee home before the end of a shift or refusing to allow them to pick up an extra shift are both pragmatic ways for businesses to limit payroll expenses.
That being said, employers can only prevent workers from putting in overtime or mandate seeking permission in advance before working overtime. Businesses still have a legal obligation to pay employees for the time that they work.
If a manager forgets to check the worker’s current accrued hours for the week and allows them to stay for overtime or to pick up an extra shift, then the company has an obligation to pay the employee, regardless of corporate policies. Employers cannot justify non-compliance with the Fair Labor Standards Act (FLSA) and state overtime rules by citing internal policy.
Companies can discipline workers who violate scheduling rules, but they cannot refuse to pay wages for time worked. Professionals facing controversy regarding unpaid overtime wages may need help understanding and asserting their rights.
Holding employers accountable for refusing to pay overtime wages may sometimes lead to litigation. A successful lawsuit can change company policy and help workers receive the pay they have already earned.