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Essentially, if the employee works over 40 hours a week in any way, you're liable for compensating them for it. So, even if you have a policy in your employee handbook that states overtime must be approved by a manager in advance, if an employee works it anyway ? in violation of the policy ? you still must pay them.
The best way to do this is to establish a policy that prohibits unauthorized overtime. Be sure to inform all employees about the policy and implement procedures to help you enforce it. For example, you can: Track employee hours daily.
Depending on the circumstance, immediate termination may be warranted in cases of, for example, if you discover that an employee has been intently and regularly incurring excessive overtime without authorization. Employers are liable for paying unauthorized overtime, no matter the reason it was worked.
You can be fired for any reason including no reason at all. Called Employment at Will. Most employers will terminate for cause such as failing to get permission for overtime hours. Even if unapproved, you are to be paid for all hours worked.
Working unauthorized excess hours to be later compensated at a bigger rate is called overtime abuse and it is a quickly spreading fungus that infects all businesses, from small to enterprise, draining their resources, lowering productivity and stagnating their growth.