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Can employers refuse to pay for unapproved overtime?

On Behalf of | Jun 2, 2025 | Employment Law

Overtime wages can add up relatively quickly. Paying workers 150% of their typical hourly rate can eat into profit margins for businesses. Although some companies mandate overtime and require that employees come in early, stay late or work on the weekends, many others outright refuse to permit overtime work.

Worker handbooks and training materials may advise hourly and non-exempt salaried employees that they cannot perform overtime work without pre-approval either from a manager or the corporate offices of the company. Despite those rules, sometimes workers at those companies may have to put in extra hours.

Perhaps a coworker calls in sick, resulting in inadequate coverage. Maybe unforeseen circumstances drastically extend the workday when a worker was already on their final shift for the week. Regardless of the situation, employees may have logged more than 40 hours. Can their employers refuse to pay them overtime because of their company’s policy?

Federal law takes priority over policies

Workers generally have to abide by company policies. However, companies must abide by federal law. The Fair Labor Standards Act clearly requires overtime wages when employees work more than 40 hours. The law specifically explains that this rule applies to not just scheduled hours.

If workers have to pick up a shift or stay late, the time that they work may qualify them for overtime pay. Their employers have an obligation to pay them overtime wages in compliance with the law. Some companies may try to manipulate workers and convince them that they do not have a right to those wages.

Management, human resources or payroll professionals may refuse to pay the workers the wages they deserve for the time that they already worked. In scenarios where employees have put in unpaid overtime, they may need to pursue wage and hour lawsuits. Civil litigation can result in the courts awarding workers financial compensation for the time that they worked as required by the law.

Of course, navigating the legal system to collect unpaid wages can be a challenging matter. Securing the support of a legal professional while preparing for wage litigation can help workers assert their rights and secure the wages that they have already earned.

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