We are a small company with only four employees. Is it legal to dock employee pay if they work overtime when they are not supposed to?
Steve Duggan replies:
No, that is not legal. Under Federal Law and DOL regulations, non-exempt employees must be paid overtime for the hours they work. If they have been warned before, you can discipline them, including terminating their employment. But, you cannot dock their pay. If you are thinking of disciplining an employee who works unauthorized overtime, you should first consult with a local employment law attorney.
Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.