There are many ways that companies violate the right of workers to receive fair pay for their labor. Some companies try to trick workers into unpaid training or performing certain job responsibilities off of the clock. Other businesses might manipulate payroll records to eliminate a few minutes of time worked for every shift worker completes. Those small adjustments can add up to many hours of unpaid time over the course of a year.
Trying to avoid overtime wages is a common employer practice. Businesses may have policies that require pre-approval for overtime. They may also try to convince workers that they do not deserve overtime pay because of a salary pay arrangement. However, not all salaries actually exempt workers from overtime pay rights.
Salaries must meet a minimum standard to exempt a worker
Overtime pay rules are very clear. If an hourly employee is on the clock for more than 40 hours in any particular work week, they are probably eligible for overtime pay. Companies have to provide at least 150% of the standard hourly wage for that worker for any time worked in excess of 40 hours.
Some companies try to bypass overtime wage rules by paying their workers on a salary basis. In theory, a salaried employee receives the same paycheck whether they work 32 hours or 45 hours. Despite what some companies may claim, not all salaried employees are actually exempt from overtime pay rules.
The salary the worker receives has to meet or exceed a federal minimum for the company to legally deny the worker overtime wages. Prior to 2024, the minimum salary requirement was $35,568. That changed on July 1st, 2024. New federal rules took effect that increased the minimum exempt salary to $43,888.
That was the first of two adjustments. At the beginning of 2025, the minimum salary for overtime exemption is $58,656. Employers may have to make adjustments in their policies to avoid overtime wage violations after these adjustments take effect.
They may need to pay workers for overtime, increase their salaries or stop requiring overtime work. In scenarios where companies do not modify a worker’s pay but continue to deny them overtime wages, the employees may have grounds to pursue a wage claim against the business.
Filing a wage lawsuit can compensate workers for the overtime pay they should have received if their employers had actually complied with federal regulations. Workers who know their rights can recognize when companies have engaged in unfair payroll practices.