Employees may not be owed overtime if employer doesn't know about work

Even though the Fair Labor Standards Act (FLSA) usually guarantees non-exempt employees time-and-a-half wages if they work more than 40 hours in a week, employers may have some leeway when it comes to work they were not aware of. Unauthorized tasks completed before a scheduled shift do not always count toward overtime, according to Business Management Daily.

The source cites Kellar v. Summit Seating Inc., an employee lawsuit in which Susan Kellar, a sewing manager for the company, pressed charges to recover back wages for unpaid overtime. According to the suit, Keller routinely clocked in for shifts between 15 and 45 minutes early. During that time, she would prepare the facility, turning on lights and machines, cleaning the work area and reviewing schedules.

The 7th District Court of Appeals filed in favor of the employer, explaining that while Kellar's morning routine wasn't considered preliminary work and was not de minimis (it was a substantial amount of time and not just a few minutes or seconds), the employer had not authorized the work and had no reason to know about the work.

Even though the court sided with the employer, it's important for businesses to retain close control over payroll practices within the company. To do so, they may consider installing a new timekeeping system, such as an advanced timeclock that will alert management about employees who are regularly accruing overtime, so they can take the necessary action before it becomes a problem.