Overtime pay is a common benefit for workers, but not everyone understands it. The confusion might come from several factors, such as vague time-tracking or unclear explanations by certain employers. In any case, some employees believe the following myths about overtime pay.
Employees can waive their rights to overtime pay
Some employees agree not to receive overtime pay for various reasons. Their employers might even put this agreement in writing so it looks legitimate. After all, contracts and many other written agreements are legally binding. However, the Fair Labor Standards Act (FLSA) states that no deals with their employers may result in employees waiving their rights to overtime pay.
Employers need to authorize overtime work
Some businesses refuse to pay for unauthorized overtime, citing their policies as an excuse. Under such policies, employees usually must first tell their employers that they plan to work overtime; only if the employer says “yes” will they receive pay for working extra hours. The FLSA states that employees can receive overtime pay regardless of whether their employer authorizes it.
Employers can substitute overtime pay with comp time
Instead of giving their employees overtime pay, some employers provide a form of paid leave called compensatory time off or comp time. Such a tactic is generally legal but only for certain types of employees. In general, current FLSA guidelines prevent employers in the private sector from giving their nonexempt employees comp time in place of overtime pay.
Employees need to be familiar with employment laws to know what benefits they should receive from their employers. If you feel that your employers are withholding benefits from you, an employment law attorney can help you fight for your rights.