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Employment - Unpaid Overtime
SUMMARY OF STATE AND FEDERAL LAWS REGARDING OVERTIME PAY
Both federal and state laws set forth the standards for the payment of overtime wages. Overtime laws serve the dual purpose of inducing the employer to reduce thehours of work and to employ more (individuals) and of compensating the employees for the burden of a long workweek. (Walling v. Youngerman-Reynolds Hardwood Co. (1945) 325 U.S. 419, 423-424.) Overtime premiums also serve to regulate maximum hours consistent with employees' health and safety needs. (Keyes Motors, Inc. v. Division of Labor Standards Enforcement (1987) 197 Cal.App.3d 557, 564.) Overtime laws also help spread employment throughout the workforce by putting financial pressure on the mployer, and to protect employees in a relatively weak bargaining position against the "evil of overwork." (Gentry v. Sup. Ct. (2007) 42 Cal.4th 443, 456.)
Some important points to remember regarding the right to receive overtime:
- The overtime rate of pay must include ALL the employee's wages, including amounts for bonuses or commissions;
- Any agreement by an employee to waive overtime pay is unenforceable;
- The analysis of overtime pay changes dramatically when the employee is covered by a collective bargaining agreement;
- Under California law, overtime begins after an employee works more than 40 hours per week OR more than 8 hours per day; and
- An employer may alter overtime pay requirements through the proper use of an alternative workweek agreement.
AVAILABLE REMEDIES TO AN EMPLOYEE WHO FAILED TO RECEIVE OVERTIME
Remedies for an employee who failed to receive all overtime include:
- Payment of all overtime due and owing:
- Under federal law, liquidated damages of up to double the amount due;
- Under California law, waiting time penalties roughly equal to one month's wages;
- Reasonable attorney fees and costs of litigation.
FACTORS THAT CAN STRENGTHEN YOUR CASE FOR UNPAID OVERTIME
In our experience, the following factors can strengthen (or weaken) a person's case for unpaid overtime:
- The willingness of eyewitnesses to provide a signed statement supporting your case. For example, if another former employee is willing to sign a statement under penalty of perjury that he/she was present on days when you worked from 6 a.m. to 5 p.m., that can be strong evidence to support your claim for unpaid overtime;
- Your possession of time sheets, pay stubs, the employee handbook, and other employment-related documents;
- Prior acts of dishonesty. For instance, if you were dismissed from college for cheating on an exam, that could substantially impair your credibility and weaken your case.
We EMPHASIZE that all cases involve unique sets of facts and circumstances, and you should feel free to call us for a free case evaluation NO MATTER if any or none of the above factors apply to you.
