Legal Question in Employment Law in Washington

Unemployment eligibility refusal to pay overtime

I have hired on with a company at an hourly rate with overtime paying time and a half, but after I work instructed overtime, company asks me only to charge 40 hrs per week and to continue to work any required overtime in the future but only charging 40 hrs. Company threatened to lay me off due to lack of work unless I complied. I think I am getting wronged by the company and really don't want to work for them any more. My question is can I quit and qualify for unemployment while I look for other employment?


Asked on 2/29/04, 3:57 pm

2 Answers from Attorneys

David Black HR Juris, PC

Re: Unemployment eligibility refusal to pay overtime

It is better not to quit and to let the company fire you from both an unemployment benefits perspective and also because you may have a wrongful termination/retaliation case if fired. Generally, voluntary termination disqualifies you from receiving unemployment benefits, unless if you quit with good cause and did everything a reasonable person would have done to avoid quitting. While quitting in your circumstances may ultimately be found to be with "good cause" it is risky to do so. Instead of relying on a finding of good cause in your favor, it is better to get fired. You should submit a written request [memo] to your manager complaining about not being paid overtime correctly and requesting to be paid overtime according to the state and federal requirements for all hours worked in excess of 40 in a workweek. Keep a copy for your records and make sure it is dated. It is unlawful for employers to terminate employees for requesting overtime pay in accordance with the law.

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Answered on 3/02/04, 2:25 pm
Craig Crispin Crispin Employment Lawyers

Re: Unemployment eligibility refusal to pay overtime

A refusal to pay overtime compensation for time worked over 40 in a work week (absent an exempt status) is illegal. If you are being paid on an hourly basis, you are not exempt from payment of overtime. Retaliation for demanding overtime compensation also is illegal. You should consider contacting a lawyer for guidance and strategy. Otherwise, you should document the hours you work in detail. Then, submit your hours to the company and request payment for overtime. If you are layed off for demanding pay for overtime hours, you will have a retaliation claim. If the employer claims you were layed off due to lack of work, you should qualify for unemployment compensation � and still have the right to pursue a retaliation claim against the employer. Moreover, if the company has many employees, past and present, to whom it is avoiding payment of overtime, you may have the basis for a class action or collective against the employer.

You should seek the advice of a lawyer. Typically, claims involving the recovery of overtime compensation are taken on a contingency basis because the statute under which the claim arises provides for the payment of attorneys fees to a prevailing plaintiff.

Avoiding the payment of overtime compensation is a significant problem in small business. Those businesses that avoid the cost of overtime create an unfair advantage for themselves and a disadvantage for their competitors. This, in turn, tempts law abiding companies to start avoiding their own overtime obligations. It is up to individuals to enforce the wage and hour laws.

Good luck. You must also be aware that you have only a limited amount of time to commence an action against your former employer. For example, overtime wages must be sought within two years, unless the conduct in refusing to pay is �willful� under the law, in which case you may recover up to three years of unpaid overtime compensation. Either way, act promptly. If you delay, your rights may be lost forever.

NOTE: The above does not constitute legal opinion and is offered for the purposes of discussion only. The law differs in every jurisdiction, and you should not rely on any opinion except that of an attorney you have retained, who has a professional duty to advise you after being fully informed of all the pertinent facts and who is familiar with the applicable law.

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Answered on 2/29/04, 5:39 pm


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