Client: I just found out an employee worked overtime last week, but I didn’t know about it until after payroll was already processed. What do I do?
Consultant: First things first—you have to pay them for the overtime. Even if it wasn’t authorized, once the work is done, wage and hour laws require you to compensate them for it. The real focus now is on addressing the process and preventing it from happening again.
Client: So, I have to pay them even though they didn’t get approval?
Consultant: Yes. You can’t withhold pay for time actually worked. That said, you can treat the unauthorized overtime as a performance issue and address it through coaching or corrective action.
You might say:
“I understand you worked extra hours, and I want to remind you that all overtime must be approved in advance. Going forward, please get approval before working extra so we can plan and manage costs.”
This keeps it clear and professional.
Client: What if they say they had to do it to get their work done?
Consultant: That’s when you dig into the why. Was the workload unreasonable? Was there a last-minute request? Or is this a pattern?
You could respond with:
“If your workload requires overtime to complete, I need you to let me know before staying late so we can prioritize or redistribute tasks. We’ll work together to make sure deadlines are met without unapproved overtime.”
This helps solve the root cause while reinforcing the process.
Client: What if this keeps happening?
Consultant: If it’s a one-off, a reminder may be enough. If it’s recurring, it’s time to escalate.
You might say:
“We’ve discussed overtime approvals before, and I’m still seeing unapproved hours. This needs to change, or we’ll need to take further action.”
Document each conversation so you have a record of the issue.
Client: Should I update my policy to cover this?
Consultant: Absolutely. Your policy should clearly state:
✔ Overtime must be approved in advance
✔ Unauthorized overtime will be paid, but may result in corrective action
✔ Employees must communicate workload concerns before working extra hours
That way, there’s no confusion about expectations.
Client: So, the key is pay now, address the behavior, and fix the process?
Consultant: Exactly. Paying for all hours worked keeps you compliant, and addressing the behavior ensures you’re not in this situation every payroll cycle. Clear policies, open communication, and follow-up are your best tools here.
And if you’d like, we can help you review your overtime policy to make sure it’s both legally sound and operationally practical.