How much could an overtime violation cost an employer?

Some of the most common labor rights violations can also be the costliest. If an employer is found in violation of the Fair Labor Standards Act (FLSA) after being investigated by the Department of Labor's Wage and Hour Division, they could be required to pay back wages and penalties for noncompliance. In some states, an employee may recover unpaid overtime for hours worked as far back as four years from the date he or she files a lawsuit, according to Strauss Law Group.

Overtime employee attendance is particularly problematic for employers. While they may be tempted to avoid paying workers the mandated rates (one-and-a-half-times the regular pay) for any hours worked beyond 40 in a single workweek, a failure to do so could cost them more in the long run.

Some states have even more stringent labor laws. California, for example, requires employers to pay employees overtime if they work longer than eight hours in a single say or 40 hours in one week. In addition, if an employee works all seven days of a week, they must be compensated overtime rates for the first eight hours of their shift on the seventh day.

A full-time employee who works five hours of overtime per week on average, earns $18 an hour and stays with a company for six years could claim $28,080 in back wages plus interest, penalties and attorney fees, the source reports.