Here are 3 Common Tricks Employers Use to Avoid California Overtime Laws



Trick #1 Comp Time in lieu of Overtime Pay

If given a choice, many employees would choose comp time or compensatory time rather than overtime pay. Comp time is when an employer offers their employees’ unpaid time off instead of overtime pay, which is given after a 40 hour work week. Unfortunately, many California employees are unaware of the California overtime law. When an employee is unaware of the California labor law overtime, it makes it easier for some employers to take advantage of one’s lack of knowledge. Unbeknownst to many employees and employers, giving comp time instead of over time pay is illegal under the California overtime law.

The problem with comp time is that it prevents employees from receiving overtime premiums. Many employers may feel that they are saving money on overtime pay fees; however, it will eventually catch up to the employer who refuses to pay. If the employer who refuses to give their employee overtime pay, they can find themselves owing a substantial amount of overtime pay, if they are audited by the Department of Labor. The outcome is not much brighter for the employee. If an employer is fined, employees can find themselves without a job and unable to collect the overtime pay owed to them if the company goes bankrupt.

A noted California Overtime Attorney adds, “When an employee accepts comp time instead of premium overtime wages, in many instances, they are effectively accept straight overtime pay and are foregoing additional premium pay that they would have received if they were paid the correct overtime amount.”

According to the overtime law, when a company gives their employees comp time, it must be given at the rate of one and one-half times the actual overtime hours the employee worked. The employee is required to take this within the same pay period the overtime hours were worked.

“Employers in many cases unknowingly offer comp time instead of overtime pay, but ignorance is no excuse for not following the statutes, “ the Attorney added.

Trick #2 Classify You As Exempt from Overtime and Give You a Salary

Employer routinely call an employee a supervisor, or a manager, give them a salary and then do not provide overtime pay. It should be noted that the actual job duties and other factors determine if an employee is entitled to overtime pay and NOT the job title. An attorney can advise you if you are entitled to overtime pay if you are classified as a manager.

Trick #3 Pay Straight Time for All Hours Worked

In many instances, an employer will just pay a straight hourly wage instead of time and a half for all hours over 8 in a day or over 40 in a week worked by an employee. In addition, some employers will only pay overtime for more than 40 hours worked in a week instead of over 8 in a day. This is improper and in this case the employee will likely have an overtime claim. To be sure, you should talk to a qualified labor attorney.