Why Do So Many Employers Not Pay Overtime?

by | Aug 1, 2020 | Wage & Hour

Wages are a central part of any job – they are a large part of why employees show up day in and day out. If you work overtime but are not compensated property, it often causes great financial suffering and accounts for a significant amount of missed money. Surprisingly, the Department of Labor estimates close to 70 percent of employers do not fully comply with the law regulating overtime pay, the Fair Labor Standards Act. Though compensation may seem a difficult aspect of the employer/employee relationship to overlook, there are many methods of and reasons for failing to pay overtime properly.

How Employers Avoid Overtime Wages

There are nearly infinite methods used by employers to avoid paying overtime to employees. Though it can occur in almost any way, avoidance is commonly achieved by:

  • Misclassifying a non-exempt employee as either exempt or an independent contractor, because neither of the other classes are entitled to overtime wages
  • Convincing an employee to work off the clock without compensation
  • Asking an employee to work either before they clock in or after they clock out
  • Not compensating employees for mandatory training sessions or work meetings

Reasons for Failing to Properly Pay Overtime

Though it ends up being more costly for employers caught failing to pay overtime thanks to penalties, fees, and interest on unpaid wages, there are a variety of reasons used to justify the lack of proper compensation. These include:

  • They are not aware they must pay overtime
  • They claim it’s not affordable to pay employees overtime
  • They believe they won’t be caught – often because workers fear retaliatory firing and won’t complain
  • It’s cheaper to violate the law because so few employees ever file unpaid overtime claims

Speak to an Experienced California Employment Attorney Today

If you’ve been denied overtime compensation by an employer, you know how much it hurts and can negatively impact your life. If you have discussed the issue with your employer and not been properly paid, you may not know you have options. To learn more about how to get the compensation you’re entitled to for your work, contact the experienced California employment attorneys at Rothschild & Alwill, APC today to learn more and see how we can help. We have years of experience fighting for employees like you to be treated fairly by your employers and getting clients results they deserve.