Unauthorized overtime can create headaches for employers. Even when you do not approve the extra hours, you still have to pay for them. That’s why it’s important to understand your obligations and how to prevent issues before they start.
Know what California law requires
California law says you must pay for all hours worked, even if you did not approve them. If an employee stays late or works through a break, those hours count. You can discipline workers for violating policy, but you still owe them the wages. Ignoring those hours can lead to wage and hour liability.
You should keep accurate records and train managers to recognize and report extra time worked. Make sure employees understand the rules and know they must follow procedures for getting overtime approved.
Set a clear overtime policy
A written policy can help protect your business. Explain when overtime is allowed, who can approve it and what happens if someone works extra hours without permission. Inform employees they must record all time worked, even if it was unauthorized.
Your policy should also explain that unauthorized overtime may lead to discipline. This helps you show good faith if there’s ever a dispute. But remember – you can’t withhold pay to punish someone for violating the rules.
Train supervisors to manage hours
Your supervisors play a key role. They should monitor work schedules and make sure employees do not clock extra time without a valid reason. If someone regularly works past their shift, ask why. It could point to a workload problem that needs fixing.
Encourage supervisors to talk with employees early, not after overtime adds up. Spotting patterns quickly can help you fix problems and avoid unexpected costs.
Take quick action to fix problems
If someone works unauthorized overtime, address it right away. Pay the wages owed, then follow your discipline policy if needed. Document the situation clearly.
When you stay consistent with your policies and communication, you’re less likely to face disputes or liability for failure to pay overtime. A proactive approach keeps your payroll predictable and your policies respected.