Overtime pay is extra money earned when you work more than a certain number of hours in a week. It rewards you for your hard work and added effort, and in most jobs, you should receive this additional compensation.
Because of the impact on your paycheck, it is important to recognize ways that your employer might try to avoid paying overtime.
Changing your classification
Employers could try to avoid paying overtime by classifying you as an exempt employee instead of a non-exempt worker. Exempt employees are not entitled to overtime pay, so if your employer puts you in this category when you should be non-exempt, they can save money.
Manipulating your hours
Your boss might try to manipulate your hours to avoid paying overtime. They could ask you to work “off the clock,” meaning you do not get paid for all the hours you work. Alternatively, they might change your time records to show fewer hours worked than you did.
Offering time off instead of overtime pay
Instead of paying you overtime, your employer might offer you compensatory time off. This means that for every hour of overtime you work, you get an hour of paid time off later. While this might sound like a good deal, you miss out on extra pay and it is not legal.
Implementing fluctuating workweek agreements
Some employers use fluctuating workweek agreements to avoid paying overtime. With this arrangement, your employer pays you a fixed salary no matter how many hours you work. So, even if you work more than 40 hours in a week, they may try this method to avoid paying mandatory overtime.
Failing to track overtime hours
Lastly, some employers might simply fail to track your overtime hours. They might not keep accurate records of your hours worked, making it difficult for you to prove your entitlement to overtime pay.
If you suspect that your employer is trying to avoid paying you overtime, be sure to speak up and seek advice from a trusted source so you receive fair compensation.