Simply stated – Yes. But there's more...
Let's start with the basics: Federal law requires business ownerws to pay overtime wages whenever an employee works more than 40 hours in a week. Overtime wages are 1.5x the worker's regular wage rate. For example, if a worker earns $10 per hour, her overtime rate would be $15 per hour.
What happens when an employee works extra hours (i.e., overtime) at night or on the weekends without permission? The federal law says you still have to pay the employee for those extra hours. However, the law gives you the right to discipline (or even terminate) workers for working more than 40 hours a week if doing so is against your company policies.
If you want to save costs and avoid overtime charges, it is imperative that your Employee Handbook have a clear policy stating that overtime hours are prohibited unless specifically authorized. Your policy should also state that violating the policy will result in discipline, up to and including termination of employment.
Many Utah businesses have incurred significant fines after being audited by the US Department of Labor for not paying their employees' overtime wages. To help avoid these kinds of penalties, our firm can perform a wage and hour audits for your business to identify any areas of legal risk and help bring your business into legal compliance. Please set up a time with one of our attorneys to review your employees classifications, perform a wage and hour audit, and review your employee handbook to ensure you are in compliance with state and federal laws.
