Common Management Mistakes Resulting into Unpaid Overtime

Unpaid overtime is probably one of the worst things that can happen to you in the workplace. It is basically a waste of time and effort because you are not getting anything in return. It can also be argued to be an immoral act on the side of your employer.

But it is important to point out that unpaid overtime can also be a result of legitimate mistakes. It is not like your employer is intentionally maximizing productivity and minimizing operation costs. Sometimes, the unpaid overtime is just the result of management errors.

Misclassifying employees

According to the website of the Leichter Law Firm, those who are eligible for overtime pay and have not been compensated by their employers may have legal options. But the key word there is eligible, because not all employees are eligible for overtime pay.

Usually, the executive and administrative employees are exempted from overtime pay, so there are instances where employees are wrongly classified as such and not paid their deserved overtime pay.

Miscalculating hours worked

Those who work more than 40 hours a week, and are not in executive and administrative positions, can receive up to one and one-half of their rate as overtime pay. But sometimes the management may have errors in calculating the hours employees have worked on, and this usually occurs by not including work that has been done while off the clock. Off the clock work often manifests in the following forms:

  • Employees going to work too early
  • Employees staying at work too late
  • Employees working during unpaid breaks, such as lunch periods
  • Employees working at home

Miscalculating wages

There are instances where the one and one-half rate of the employees is not calculated properly, resulting into overtime work that is basically unpaid. But this rate is not the only variable that is prone to being miscalculated, because other variables such as commissions, shift differentials, and even performance-based rewards are not properly factored in the calculation of hourly rates.

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