Overtime wages can be relatively expensive for businesses. They have to pay a worker at least 150% of their typical hourly wage. That can make their services much more costly than normal. While companies can potentially require overtime as a condition of employment, they do have to pay their workers in accordance with state and federal law.
Many businesses are very careful about their scheduling practices to avoid overtime wage claims by workers. Some organizations even implement a no-overtime policy that forbids putting in more than 40 hours per pay period.
Occasionally, workers at such companies may end up staying late or working extra shifts that lead to overtime wages. Can employers justify refusing to pay overtime wages because of a company policy?
Policies do not supersede the law
Organizations absolutely have the right to set their own policies regarding worker pay as long as those rules align with state and federal statutes. It is permissible to proactively prevent workers from putting in overtime. It is not lawful to deny overtime wages to those who have already worked 40 hours or more. Employers have to pay overtime wages to all workers who earn them.
Policies that require approval from management or the corporate offices to work overtime can deter many workers from accruing overtime. However, if they end up stuck at work because a coworker calls in sick or some other unusual situation arises, they have a right to overtime wages for the time they worked. Companies should not deny them their wages, but some may try to justify doing so.
Workers who have not received the overtime pay that they deserve may need to pursue a wage and hour claim against their employers. Filing a lawsuit may be the only way to force businesses into compliance with federal payroll regulations.
