The Fair Labor Standards Act (FLSA) is a critical federal wage law. It establishes the right of workers to receive fair pay for time worked. It governs various details of the wage calculation process, from time clock rounding to overtime calculations.
Under the FLSA, hourly employees have a right to overtime pay if they work more than 40 hours in a particular workweek. Salaried employees may also be eligible for overtime pay if their salaries are low enough that they are not exempt.
Sometimes, employers use company policy as a means of preventing overtime pay obligations. Can businesses refuse to pay overtime to workers due to a company policy forbidding overtime or requiring pre-approval?
The law is more important than company policy
Technically, employers can implement a variety of different practices to control staffing costs and manage relationships with workers. Management can demand pre-approval for overtime hours. The company can also enforce strict scheduling rules that prevent workers from ever putting in more than 40 hours per week.
However, the organization cannot refuse to pay overtime wages after workers have already earned them. Refusing to provide at least 150% of an employee’s typical hourly rate for hours worked beyond the 40th in one workweek is a violation of the FLSA. Regardless of company policy, federal wage laws are what ultimately govern the workers’ rights and the company’s obligations.
Reviewing work records and communications about unpaid overtime with a skilled legal team could help workers hold their employers accountable. Unpaid overtime is a leading cause of wage and hour lawsuits and worker allegations of company FLSA violations.
