Other Overtime Scams

While some employers fail to pay overtime unknowingly, others trick their employees by using common overtime scams. For example, a common overtime scam occurs when an employer offers their employees their normal pay rate instead of time-and-a-half pay for hours worked over forty.

An employer may also be in violation of the Fair Labor and Standards Act (FLSA) if they offer employees comp time instead of overtime pay. For example, an employer may give a worker who puts in 50 hours one week, 10 hours off the following week. However, if the employee is non-exempt, he or she should be receiving time-and-a-half for hours worked over 40. Another overtime scam may occur when employees are paid cash off the books. Often, the employer may be hiding an overtime or minimum wage violation.

Lastly, many employees also believe that all salaried workers are exempt from overtime pay. This, however, is incorrect. An employee’s job duties are the deciding factor in determining who is exempt and non-exempt from overtime pay.