Spending more than 40 hours a week at work comes at a cost – less time with family, missed social events and added stress. However, for non-exempt workers, there is a silver lining: overtime pay. This time-and-a-half pay should reward you for those extra hours. Sadly, for the reasons we discuss below, not everyone gets what they should.
Sloppy time tracking
Accurate timekeeping is crucial for fair overtime pay. You should be paid for all time worked, including those few minutes before or after your shift, but this doesn’t always happen. Keep in mind a few things about time tracking:
- Every minute counts: Even small errors can add up over time.
- Manual systems are prone to mistakes: Paper timesheets or honor systems invite errors.
- Some employers round down: This practice can rob you of earned time.
If your employer isn’t tracking time precisely, it affects your paycheck. As a worker, ensure you keep track of your own hours. It’s a simple step that can make a big difference.
Mistakes in base pay calculations
Overtime pay is calculated based on your regular hourly rate, which must include all forms of compensation. Inaccurate base pay calculations can lead to underpaid overtime wages.
For example, a recent lawsuit against the Detroit Tigers highlighted the importance of accurate base pay calculations. According to the lawsuit, the team failed to include certain bonuses and benefits when calculating overtime pay for hourly workers. This oversight resulted in underpaid wages for many employees.
If you receive bonuses, commissions or other forms of pay, confirm that your employer includes these in your regular pay rate for overtime calculations.
Misclassification as exempt
Not all jobs qualify for overtime pay. Michigan law exempts certain employees from overtime rules, specifically “bona fide executive, administrative, professional and outside sales employees.”
Misclassifying employees as exempt to avoid paying overtime is a serious issue. If you believe your job duties do not align with the criteria for exemption, it’s important to seek clarification and potentially legal counsel.
Get the pay you deserve
Understanding your rights as a worker in Michigan means understanding the intricacies of overtime pay. By being aware of potential pitfalls, you can advocate for yourself and ensure you receive the full compensation you deserve.
Don’t let confusion about overtime rules cost you money. If something seems off about your pay, speak up.