Overtime Penalties: What is it and how to prevent it

Kevin Nguyen
November 5, 2021

Under the FLSA, employers must pay overtime wages for any overtime worked—authorized or not. Failure to do so could land business owners with an expensive penalty, a lawsuit, or even jail time.

According to the Department of Labor, violators of federal overtime rules may be prosecuted criminally and can be fined up to $10,000. Repeat offenders can be imprisoned and are subject to civil money penalties of up to $1,100 per violation.

Avoiding Overtime Penalties

  • The best way to deal with overtime penalties is to not incur them in the first place. The easiest way to do this is to track employee hours and ensure that any employee working overtime gets paid accurately.
  • Implement an overtime policy that should state when you allow overtime, how to get overtime authorized, and what happens when workers ignore the policy. It should include clear instructions and consequences for employees, managers, and supervisors.
  • Automate your back-office processes to minimize errors that can lead to miscalculation of regular and overtime hours.

At Bilfo, we believe that there should be specific software to manage your back-office while providing you with Business Intelligence that you need to grow your business.

Bilflo helps you stay compliant by only showing state-applicable overtime rules in all 50 states and automatically calculates your employee’s pay. This means no room for errors and definitely no penalties!!!

If you are interested in learning more about Bilflo’s back-office management and Business Intelligence tool, schedule a Discovery Session with our qualified team today.