In today’s workplace, employees often find themselves putting in extra effort without additional compensation, sometimes even unknowingly. Many employees are less than satisfied with their jobs, with 68% feeling they are underpaid.
Unfortunately, companies seem to continue to take advantage of people’s time. Some businesses have figured out clever ways to maximize productivity without increasing wages. Here’s how an employer can legally let you work for free, and what you should be aware of to protect your time and energy.
1. Unpaid overtime expectations
Employers often create a culture where overtime is normalized. While salaried employees are not entitled to overtime pay, even hourly employees may feel pressured to work overtime. Subtle nudges like “team commitment” or “passion for work” can make employees feel guilty for working without pay. Some companies avoid recording additional hours worked, especially if assignments are performed off-site. Taking your personal time to answer emails or prepare for meetings can quietly add time to your week. The law may allow this under certain categories, but your salary remains the same.
“Legal” ways for employers to get away with this include misclassifying employees, excluding overtime, requiring employees to do extra work when they don’t work on time, using clocks that round down, and denying overtime pay based on an employee’s title.
The Fair Labor Standards Act (FLSA) requires non-exempt employees to receive overtime pay for any time they work in excess of 40 hours per week. This means that you should be fairly compensated for the time you put in while you’re away from the office. Otherwise, you can wait until the next business day. If you feel like you’re working overtime but not getting paid, there are things you can do about it, but you need to act quickly. Here are some actions you can take:
- File a claim with the U.S. Department of Labor’s Wage and Hour Division (WHD)
- File a claim with your state’s labor office
- File a lawsuit in court
2. Volunteer training program
Some companies require employees to attend training courses or skills development seminars during unpaid time. These programs are often promoted as growth opportunities, making employees feel like they are a personal investment. Employers avoid legal issues by labeling these meetings as “voluntary” or not related to current job performance.
However, these “voluntary” programs may come with unspoken expectations of participation. Time spent on such activities outside of working hours essentially becomes free labor. It’s legal, but it’s still unpaid work that benefits the employer.
To solve this problem, there are a few things you can do. First, it is recommended that voluntary training takes place during normal working hours. If this is not possible, raise the issue with your employer and ask to be compensated for your time. Otherwise, your attendance will not be enforced. Remember, your employer cannot ask you to do any work that they do not pay you for.
3. Employee classification error
As mentioned above, employers sometimes misclassify employees as independent contractors to get around certain wage regulations, such as overtime, minimum wage, and other laws. Independent contractors generally are not eligible for overtime, benefits, or minimum wage guarantees. This classification may also require workers to bear business expenses such as travel or equipment costs. Likewise, some employers classify positions as “exempt” from overtime rules even though they are not supposed to do so. Workers may end up completing additional tasks for free under the guise of job flexibility. This is perfectly legal as long as the employer follows classification guidelines, but it is the employee who suffers.
4. Required preparation or cleanup time
Some jobs require you to do prep work or cleanup before and after your official shift. For example, retail employees may need to set up displays, while restaurant employees may need to clean up after hours. This time is often unpaid because the employer claims it is part of the job rather than actual “time worked.” Even remote employees may be asked to log in ahead of time to test software or schedule meetings. These small tasks combine to take up a lot of your personal time. While legal, these practices often take advantage of workers who are unaware of the compensation they deserve for their time.
5. “Optional” after-hours activities
Corporate culture often includes “optional” social events such as team-building retreats, happy hours, or networking dinners. These events may be irregular, but come with significant peer pressure to attend. Employees may feel that their absence may be viewed as a lack of commitment to the team or company. While these events are promoted as networking opportunities, they often include work-related discussions. You’ll end up using your free time to cultivate professional relationships that ultimately benefit your employer. Legally speaking, participation is voluntary, but workplace dynamics can make it difficult to say no.
6. Expectations to be available on call
Many employees, especially those in technology or health care, are expected to remain on call without compensation. Employers may claim that this availability is built into the position, blurring the lines between work and personal life. Workers often answer phone calls, emails or text messages during downtime, which increases over time. While this expectation is legitimate, it forces employees to continue working even after hours. This can also impact mental health, as it can be difficult to truly detach from work. Employers can profit from continued availability at no additional cost.
Know your rights and set boundaries
Employers have found creative ways to legally extract unpaid labor, but it’s crucial to know your rights. Proactively setting boundaries can help you protect your time and energy. Start by documenting unpaid tasks and reviewing labor laws related to your job classification.
If you feel your employer has crossed a line, seek advice from Human Resources or consult a labor expert. Awareness is key; the more you know about these tactics, the better you can advocate for yourself. Remember, your time is valuable – don’t give it away for free.
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Drew Blankenship is an experienced automotive professional with over 20 years of hands-on experience as a Porsche technician. While Drew writes primarily about cars, he also lends his knowledge to articles about money, technology, and relationships. Drew, who lives in North Carolina, still fuels his passion for motorsports by following Formula 1 and spending his weekends whenever possible. He lives with his wife and two children, who occasionally remind him to take a break from rebuilding the engine.
