As wage laws evolve, so do the tactics some employers use to avoid paying workers fairly. In 2025, changes in unpaid overtime laws and enforcement mean that employees must stay informed to protect their right to fair compensation. If you regularly work more than 40 hours a week, understanding these new regulations and common employer loopholes is essential to ensuring you’re paid what you’re owed.
What’s New in Unpaid Overtime Laws for 2025?
The Department of Labor (DOL) has introduced new unpaid overtime regulations to close wage gaps and combat unfair labor practices. Key updates include:
- Increased Salary Thresholds for Exempt Employees: Many salaried workers previously considered exempt from unpaid overtime pay may now qualify due to raised income thresholds.
- Stronger Protections for Remote and Gig Workers: Companies must now track and compensate unpaid overtime hours for remote employees more accurately.
- Enhanced Penalties for Violations: Employers caught violating unpaid overtime laws may face higher fines and legal repercussions.
- Stricter Timekeeping Requirements: Employers are now required to maintain accurate records of employee hours, reducing cases of unpaid overtime.
These changes mean that more workers than ever may be eligible for unpaid overtime pay, making it crucial to check whether you qualify under the updated regulations.
Common Unpaid Overtime Violations Employers Still Commit
Despite stricter rules, some employers continue to find ways to avoid paying unpaid overtime properly. Here are the most common violations to watch out for:
1. Misclassifying Employees as Exempt
Some employers incorrectly classify workers as salaried employees to avoid paying unpaid overtime. However, just because you’re salaried doesn’t mean you’re exempt. If you don’t have managerial duties or decision-making power, you may be eligible for unpaid overtime pay.
2. Manipulating Work Hours
Does your employer shift hours between weeks to avoid paying unpaid overtime? Some companies falsely adjust schedules to keep hours below 40 per week on paper—even if you’ve worked extra hours.
3. Requiring “Off-the-Clock” Work
If you’re asked to work before clocking in or after clocking out, that’s unpaid labor and a direct violation of unpaid overtime laws. This often happens in retail, healthcare, and food service industries.
4. Failing to Pay for Remote Work Overtime
With more employees working remotely, tracking hours has become more complicated. If your employer expects you to answer emails or complete work tasks outside of scheduled hours, you’re entitled to compensation for unpaid overtime.
5. Offering Comp Time Instead of Overtime Pay
Some companies illegally offer compensatory time (extra paid time off) instead of unpaid overtime pay. In most cases, federal law requires cash payment for unpaid overtime hours.
How to Protect Yourself from Unpaid Overtime Violations
If you suspect your employer is withholding unpaid overtime, take these steps to protect your rights:
- Keep Detailed Records
- Track your hours worked each day.
- Save pay stubs, emails, and work schedules.
- Document any extra tasks performed outside of normal work hours.
- Review Your Paychecks
- Compare your pay stubs against the hours you worked. If you see missing unpaid overtime, this is a clear red flag.
- Know Your State Laws
- While federal laws set minimum standards, some states offer stronger unpaid overtime protections. Check local wage laws to see if you’re entitled to additional compensation.
- File a Wage Claim
- If your employer refuses to pay unpaid overtime, you can file a complaint with the U.S. Department of Labor’s Wage and Hour Division (WHD) or your state labor board.
- Consult an Employment Lawyer
- An attorney specializing in wage and hour violations can help you recover unpaid overtime, file a lawsuit if necessary, and ensure your rights are protected.
Final Thoughts: Stay Informed, Stay Protected
Unpaid overtime violations remain one of the most common forms of wage theft, but knowing your rights is the first step toward ensuring fair pay. With updated laws in 2025, workers have stronger protections than ever—but employers may still try to exploit loopholes.
Need Help Recovering Unpaid Overtime?
At David Gallo Law, we fight for workers who have been denied fair wages. If you suspect an unpaid overtime violation, contact us today for a free consultation. We’ll help you recover what you rightfully earned.
