The Negative Effects of Denying Employees Their Overtime Pay

The Negative Effects of Denying Employees Their Overtime Pay

Oct 16

There are varied reasons why a majority of people today are willing to render unpaid extra time of work after their regular work shift. A couple of these reasons are a show of commitment for personal advancement, while the other is a management requirement for these employees to render such extra time in exchange for the high salary the company is giving them, that is, finishing the required job rather than setting one’s mind to working only within a specified number of hours. Actually, it is more like a case of getting “fired” or getting fired!

Though unpaid overtime may not really affect high earners, it is a totally different case when it concerns employees whose salaries are far too short to even afford them of a decent living, much more a life style. For hard-earning employees every dollar that they can earn matters. This is primarily the reason why they decide to sacrifice part of their personal time – to be able to take home as much earnings as they can.

Not paying rendered overtime work is unfair labor practice. The Portal-to-Portal Act of 1947 and the Fair Labor Standards Act of 1938 are laws enacted to make sure that employees never get to suffer such injustice. While the first law states that all work done for the employer’s benefit, at whatever time, ought to be compensated, the second, also known as the Wages and Hours Bill, includes (in its stipulations) how much pay an employee should receive for extra time of work.

Denying an employee of the overtime pay due him/her can lead to severe financial consequences. It can eventually result to the employee’s inability to pay bills and debts, resulting further to a declaration of bankruptcy which can affect his/her credit record.

The website of Habush Habush & Rottier S.C. ®, a personal injury law firm that has been operating for over 75 years, has posted in its website the various ways through which overtime laws can be violated. These include:

  • Failure to pay employees for any work rendered before or after regular work shift
  • Failure to compensate employees for any work performed at home
  • Failure to pay employees for any work required of them during lunch break

The laws on overtime pay is meant to benefit all non-exempt employees (or employees eligible to render overtime work), whether part-time, full-time, salaried, temporary of hourly paid employees. Once denied of pay, they ought to know that they have the legal right to ask for what is due them.