July 21, 2017 / By Zip Clock / In Zip Clock / Comments

4 Common Tricks Used By Employers to Avoid Paying Overtime

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All employees are entitled to overtime pay, unfortunately, some employers use tricks to avoid parting with such resources in a bid to cut costs. Studies show that the percentage of overtime-related lawsuits has been rising at an alarming rate every year. There are many tricks that employers apply to cheat their employees, but with attendance calculator software such as Zip Clock, it would be next to impossible for an employee to get swindled out of his/her hard-earned pay.

In this article, we are going to look at some of the most common tricks used by employers to evade paying for overtime, and how time tracker software or an attendance calculator app can be of help.

Telling Employees They Aren’t Qualified for Overtime Pay

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The most common trick employers use to evade paying overtime dues, and one that most employees fall for, is convincing the workers who are paid on a salary basis that they don’t qualify for overtime pay. The truth is that this applies only to employees who earn a weekly salary of $455. If not, employers must pay overtime or face a lawsuit. When employees use attendance calculator software to clock in and out of work, it becomes very easy for them to prove that they indeed worked overtime should evidence be required.

Forcing Employees to Clock Out Unnecessarily

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Some employers even go as far as forcing their workers to clock out for breaks even when no break was taken. Others force their workers to clock out but to keep on working without clocking in overtime. Such employers avoid using attendance application software and prefer to use manual time tracking methods so that there would be no evidence should the employees decide to file a law suit.

Classifying Worker as “Independent Contractors”

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Classifying workers as “independent contractors” and having them sign such agreements is another trick used by employers to avoid paying overtime. The sad fact is that many employees have been tricked into believing that they are independent contractors when they are normal employees who deserve overtime pay in real sense. In most cases, the law will recognize you as an employee if the following applies to you:

you answer to all company rules, including time rules you are not allowed to work for another company you are also not allowed to hire an assistant Unfortunately, employees who have been wrongly labeled as independent contractors not only lose their overtime pay, they lose more through employment taxes.

Unpaid Hours Working from Home

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Any work done from home after clocking out deserves overtime pay, including responding to messages or answering emails. Unfortunately, most workers don’t know this and employers take advantage of this to benefit themselves. Research shows that some workers spend more than 30 (unpaid) hours a month working from home. Honest employers can allow their workers to clock in such hours via attendance application software like the Zip Clock Time Clock Software .



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