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Cheated Out of Overtime? The Top 5 Dirty Tricks Employers Use in New York

Overtime Pay New York
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New York has strong overtime laws designed to protect workers from being overworked and underpaid. According to New York Labor Law (NYLL) and the federal Fair Labor Standards Act (FLSA), most employees who work over 40 hours a week are entitled to overtime pay at a rate of 1.5 times their regular hourly wage. These laws ensure workers are paid fairly for every extra hour they put in.

Unfortunately, some employers deliberately violate these laws. They misclassify employees, force unpaid work, or manipulate payroll records to save money. These tactics are not only unethical—they’re illegal.

At Horn Wright, LLP, our employment law attorneys are dedicated to holding these employers accountable. Our team fights tirelessly to recover lost wages and ensure justice for hardworking individuals across New York.

Tricked into Being “Exempt” — How Employers Dodge Overtime Pay

One of the most common ways employers cheat workers is by wrongly classifying them as “exempt” from overtime pay. Under the FLSA, only specific job categories—like bona fide executive, administrative, or professional roles—qualify for exempt status, and they must meet strict criteria. For instance, an exempt employee must be paid a salary of at least $684 per week and perform specific high-level duties. Mislabeling workers as exempt, without meeting these requirements, is a direct violation of the law.

Employers often misclassify workers as independent contractors to avoid paying overtime. Independent contractors, under New York Labor Law Article 6, are self-employed individuals who control their own work hours and business operations. However, many employers abuse this classification to dodge payroll taxes and overtime obligations. Industries like construction, gig economy platforms, and even some tech companies frequently misuse this loophole.

Forced to Work for Free? The Truth About Off-the-Clock Hours

Off-the-clock work is another dirty trick employers use to shortchange workers. Tasks like prepping for the day, cleaning up after shifts, or answering emails outside work hours should all be paid. Under 29 C.F.R. § 785.11, any activity that benefits the employer is considered compensable work, regardless of when or where it takes place.

Despite these clear guidelines, many businesses pressure employees to clock out before completing tasks. New York law also prohibits this practice under NYLL § 191, which requires prompt and full payment for all hours worked, including overtime.

These unpaid minutes and hours add up, leaving workers with significantly less pay than they’re entitled to. If you’ve ever been told to work “off the clock,” you have the right to demand compensation for that lost time.

Shortchanged! When Overtime Pay Isn’t Calculated Correctly

Even when overtime is paid, it’s not always calculated accurately. Some employers deliberately miscalculate overtime by excluding bonuses, commissions, or other forms of compensation from the regular hourly rate. Under 29 C.F.R. § 778.208, the law requires all forms of remuneration—except specific exclusions like gifts or discretionary bonuses—to be included in the calculation of overtime pay.

If, for instance, an employee’s base hourly rate is $20, but they also earn a weekly bonus of $50, their overtime pay must be calculated using a higher hourly rate that accounts for the bonus. Employers who ignore this rule are violating the law and robbing workers of their rightful earnings.

New York law reinforces this through NYLL § 198, which allows employees to recover unpaid wages plus liquidated damages equal to 100% of the unpaid amount. If your overtime pay seems lower than expected, it’s worth contacting the employment lawyers at Horn Wright, LLP, to look into how your employer is calculating it.

“Lost Hours” — When Employers Fail to Track Time Properly

Accurate timekeeping is critical under both federal and state labor laws. The Fair Labor Standards Act 29 U.S.C. § 211(c) and New York Labor Law § 195(4) require employers to maintain detailed records of all hours worked. Despite these requirements, some businesses manipulate time records or fail to track hours altogether, resulting in lost pay for employees.

An employer might round clock-in and clock-out times to the nearest 15 minutes, systematically reducing total hours. In industries like hospitality and retail, where time clocks are standard, some employers even alter records to minimize overtime payouts. These practices are illegal, and employees have the right to challenge them.

If your paycheck doesn’t reflect the hours you worked, or if your employer relies on vague or incomplete records, they could be violating the law. Speaking with an experienced labor law lawyer at Horn Wright, LLP, is the best decision you can make to know your rights.

Punished for Speaking Up: Retaliation and Worker Intimidation

Speaking up about wage violations is never easy, especially when employers retaliate against those who do. Retaliation can take many forms, including demotions, harassment, unfair scheduling, or even termination. Both FLSA 29 U.S.C. § 215(a)(3) and NYLL § 215 strictly prohibit any form of retaliation against employees who report violations or file complaints.

If you’ve been punished for standing up for your rights, you’re not alone. New York laws not only protect you—they also provide avenues for recovering damages caused by retaliation.

Turn Unpaid Overtime into Recovered Wages with Horn Wright, LLP

Employers across New York use a range of tricks to cheat workers out of overtime pay, but you don’t have to accept it. Whether it’s misclassification, off-the-clock work, incorrect calculations, or retaliation, the law is on your side. The employment lawyers at Horn Wright, LLP, understand the impact of these violations on hardworking people and their families. We’ll fight to recover the wages you’ve earned and hold your employer accountable.

Contact us today for a free consultation to take the first step toward justice.

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