Rogue employers use different tactics to avoid paying their employees the overtime pay they are entitled to. These tactics help such employers save thousands of dollars every year. If you notice any of these tactics in your workplace, it could be the clearest indication that something is wrong.
Misclassification
Although employees who work over 40 hours a week are entitled to overtime pay, this rule does not apply to certain workers. For example, in most cases, independent contractors are not considered company employers. For this reason, a rogue employer might misclassify a worker as an independent contractor. As a result, the worker might work overtime without earning the additional compensation they deserve for those hours.
So before you sign your employment agreement, it is important that you know which employment category you fall under. And if your employer classifies you as an independent contractor but treats you as an employee, you may have a case against them.
But how exactly can you tell if you are an independent contractor?
Tax Records
Your tax records can help determine whether you are an employee or an independent contractor. For example, if your employer deducts certain taxes, such as Social Security, Medicare, or unemployment taxes from your wages, chances are you are an employee of the company. This is because you file your own taxes when you are an independent contractor.
Wage Structure
Most employees get paid regular wages, usually the minimum wage or slightly over. On the other hand, most independent contractors make more than the regular wage. This is because they have to file their own taxes, which is where part of the money goes. In addition, independent contractors usually get paid per project. So if your employer pays you per hour, chances are you are an employee, not an independent contractor.
Work Schedule
Employees usually have to stick to a particular work schedule. For example, you may be required to work five days a week and clock in and out at a specific time. On the other hand, independent contracts usually have their own schedule. They then try to align their schedule with the company they intend to provide their services for.
A good example is a roofing contractor. Rather than clocking in every morning like an ordinary employee would, the contractor might prefer to work only on a specific day and time.
Company Policies
Employees are required to follow certain company rules and policies. For example, a company might require its employees to maintain a certain dress code while on shift. On the other hand, independent contractors have much more independence. They do not need to abide by the company's rules unless it is part of the contract.
Working Off the Clock
If your employer constantly asks you to work off the clock, chances are they want to avoid paying you for those hours. One thing you need to know is that rogue employers will not explicitly ask you to work off the clock. Rather, they will devise different tactics to use your labor without extra pay.
For example, does your employer constantly ask you to drop off mail at the post office after clocking out? If so, this could be one of the tactics rogue employers use to avoid paying overtime. It does not matter even if the nearest post office is 10 minutes away. If you keep dropping off the mail six times a day, that's 60 minutes (one hour) worth of overtime pay.
Remember, overtime rules require your employer to pay you time and a half of your regular pay. So if you get stuck in traffic running errands for your employer off the clock, you are not only not getting paid for your time but also your resources (gas in this case).
Working Before Clocking In
Some employers ask their employees to work before they officially clock in. As mentioned earlier, employers do not explicitly make such requests. Instead, they will make it sound like a favor. Some will manipulate you into accepting these requests.
For example, suppose your employer asks you to help clean part of the building before clocking in. In that case, this could be one of the many tactics rogue employers use to avoid paying overtime. The fact of the matter is that your employer would need to hire someone to do the cleaning, but since you seem too nice, they will use you instead. While it is not wrong for an employer to request such assistance, the main point here is that you deserve to be paid for your time and effort.
Not Being Paid for Attending Meetings and Training Sessions
Certain professions, such as caregiving, require regular training. As a result, state laws might require employers to provide their employees with additional training, usually every few months. Examples of such training sessions include CPR and First Aid, workplace safety, food handling, emergency management, etc. In addition, employers are required to pay their employees for attending these meetings or training sessions.
In most companies, the finance and billing department issues timesheets for employees to fill out during the meeting. These timesheets are then included in the employee's regular work hours. And if they exceed 40 hours in that particular work week, then the employee might be eligible for overtime pay.