As overtime lawsuits continue to surge, employers often try to defend themselves by pointing to their policy that says employees should have received management approval before working OT.
Bad news: Judges are dealing harshly with employers that try to rely solely on the “no-OT-without-approval” defense.
That’s because the Fair Labor Standards Act requires management—not employees—to make sure employees don’t work unpaid overtime hours.
According to the U.S. Department of Labor, “time spent doing work not requested by the employer, but still allowed, is generally hours worked.” And if nonexempt employees work—whether it’s authorized or not—you must pay them for their time.
Here’s how to stop abuse of unauthorized overtime:
1. Ensure all employees know they must obtain supervisor approval to work overtime. Don’t bury the rule deep within your handbook.
2. Develop checks to prevent off-the-clock work. Example: Insist all hourly employees clock in and out.
3. Adopt tracking measures, such as electronic entry cards, to back up reports of hours worked.
4. Institute progressive discipline for overtime violators. While you must pay for all hours worked (authorized or not), you can discipline rule-breakers.
More advice: While a no-OT-without-approval policy won’t insulate you from lawsuits, you should still be sure to include one in your employee handbook.
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