HR Management & Compliance

5 Common Overtime Violations

Several types of overtime violations hit the headlines again and again. Here are 5 of the most common:

1. Failure to pay overtime at all. It’s astounding that companies think that they can get away without paying overtime, but a surprising number try. Memo to management: the employees are going to figure this out, and some of them are going to complain.

2. Misclassification of independent contractors. There is a substantial gray area here, but it’s worth penetrating it to be sure you are making a rational, supportable decision. If your independent contractors are doing the same work as your employees, they may well be employees.


Overtime–the hidden time bomb. It’s one of the most basic employment law rules, yet one of the most frequently flouted. Learn how you can legally reduce your overtime costs by joining us for an in-depth webinar on May 27.

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3. Misclassification of exempt workers. Here again, there is some gray area in determining exemptions, but the most common offenses are not very technical. For example, you will often see situations in which a person is called a “manager,” but his or her duties are clearly nonexempt (working the cash register, stocking shelves, etc.). In making exemption determinations, it’s important to remember that title means nothing–all that matters is what the person does.

4. Failure to pay overtime on bonuses. It’s annoying, but it is required that when you pay bonuses, you go back and recalculate overtime payments to include the bonus.

5. Failure to pay for tasks done before or after work. Donning and doffing tasks–or, as the government grandly calls them, “preliminary and postliminary” tasks—such as changing into special outfits, or traveling to the worksite, may need to be paid time. If you are requiring employees to do significant tasks before clocking in or after clocking out, you should reconsider your requirements.


Reducing Overtime Costs in California: What You Legally Can—and Can’t—Do to Keep Workers at Their Straight-Time Rates

In 2009, the top 10 U.S. wage-and-hour lawsuits against private employers were settled for a staggering $363 million, according to a recently released workplace litigation report.

Couple that with the fact that both state and federal agencies are hot on the heels of employers who owe for unpaid overtime, and it’s clear that overtime-related enforcement and litigation is becoming a major headache for employers.

For example, a warehouse worker recently sued Amazon.com for its policy of rounding start and end times to the nearest quarter hour, alleging that the practice shorted him on overtime pay. If approved as a class action, the lawsuit could mean multi-million dollar damages for Amazon because more than 20,000 warehouse workers across several states have allegedly been affected.

So what’s an employer to do? On the one hand, you must be vigilant about complying with both state and federal overtime rules—and California’s are the most stringent in the country. On the other, you’ve got to ensure that your overtime costs don’t run your organization right out of business. Quandary? Absolutely. Insurmountable? Not at all.

Join us on May 27 for an in-depth, interactive webinar—specifically for California employers—where you’ll learn how to keep your overtime costs at bay with compensation practices and policies that are perfectly legal under both state and federal law.

Our expert—a seasoned Los Angeles-based labor and employment attorney—will explain how some practices, such as docking and rounding hours, could land you in a heap of legal trouble if they aren’t properly administered, while providing you with practical guidance on what you can do to legally get a handle on skyrocketing overtime costs. You’ll learn:

  • When you can legally dock straight time and when you can’t
  • The difference between overtime pay and overtime premiums, and how you may be able to use premiums to offset overtime costs
  • How to design bonus plans so they don’t increase your overtime liability
  • When state and federal law allow you to round hours and where Amazon—and perhaps countless other employers—have allegedly gone wrong
  • Tracking strategies for ensuring the accurate reporting of all hours worked
  • Policy-drafting tips for combating non-exempt employees’ off-duty, work-related activities, such as checking voice mail or responding to work emails after hours
  • When overtime exemptions may apply—so you’ll know exactly when you can legally re-classify employees under the white-collar exemptions
  • Key differences between state and federal overtime law that can trip you up if you’re not careful

Register now »

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