Companies that rely on labor have to meet certain standards. They must offer competitive pay to attract workers. They also need to comply with safety standards and labor laws to retain their staff.
Employees have certain protections under state and federal laws. For example, employers have to comply with safety regulations by providing appropriate training and safety equipment to workers in dangerous professions and those tasked with risky job responsibilities. Even minimum-wage food service workers need safety training before handling devices like meat slicers.
Workers also have certain rights regarding their wages. Employers have to comply with minimum wage regulations. They also need to pay overtime wages in certain circumstances. Some organizations have internal rules prohibiting overtime. Can employers refuse to pay overtime wages due to a company policy?
Employers can avoid overtime
There are no rules that force employers to allow workers to stay on the clock as long as they want. Companies generally have the authority to set schedules for their workers. They can require overtime from their employees. They can also implement company practices that limit or effectively eliminate overtime for workers.
However, if workers put in more than 40 hours during a work week, then the company generally needs to pay them at least 150% of their usual hourly wage. The internal policy forbidding overtime or requiring pre-approval does not supersede the law. Only exempt workers paid on a salary basis may need to work extra hours or extra shifts without additional pay.
Hourly employees are often eligible for overtime pay if they work more than 40 hours in a particular work week. Workers who receive low salaries may not necessarily be exempt from overtime rules. Once the worker has put in more than 40 hours, the company has an obligation to pay them accordingly. Typically, employers should not deny workers overtime pay or alter their payroll records to eliminate the overtime they worked.
In scenarios where employees do not receive the overtime wages they deserve or companies make retroactive adjustments to time clock records, workers may have reason to pursue a wage claim against the company. Learning more about pay regulations can help hourly workers and those receiving low salaries identify when they may have grounds to pursue an overtime-related wage claim.