Encouraging Employees to Report Low Number of Hours on Time Card Does not Relieve Employer

Have you ever been told to report fewer hours on your time card than you actually worked?  Employees were given a much need break when the Eleventh Circuit Court recently ruled against an employer that encouraged under-reporting of overtime work.  In the case of Bailey v. Titlemax of Georgia, the facts were presented as follows:

Have you ever been asked to record fewer hours than you actually worked? If yes, you’re not alone – many workers face pressure from supervisors to under-report overtime, leaving them unpaid and unheard.

Recently, employees received a major win when the Eleventh Circuit Court of Appeals ruled against an employer that encouraged this exact behavior. In the case, Bailey challenged his employer, arguing that he was denied rightful overtime pay under federal law.

Case Breakdown: Bailey v. Titlemax of Georgia

The key facts presented to the court were:

• His employer required him to regularly work overtime.
• His supervisor pressured him to falsely report fewer hours on his time card.
• He eventually resigned from the company.
• He later filed a lawsuit claiming unpaid overtime under the FLSA.

The employer requested a summary judgment, claiming the employee violated company policy by not reporting accurate hours. They also argued he should have escalated the issue to higher management. The employee acknowledged these policies.

Initially, the District Court sided with the employer using the “unclean hands” defense—suggesting the employee was partly responsible for his unpaid overtime.

Appeal Decision: Workers Protected Under the FLSA

On appeal, the Eleventh Circuit Court overturned the ruling, emphasizing that the purpose of the Fair Labor Standards Act (FLSA) is to protect workers and level the imbalance between employers and employees.

The court determined that:

• An employer cannot avoid overtime liability just because hours were under-reported.
• The employer knew or should have known about the overtime work.
• Since the employer had actual or constructive knowledge, they were legally required to pay overtime.

What This Means for Employees

This ruling sets an important precedent:

• Employers can no longer pressure workers to misreport hours.
• Companies remain responsible for overtime pay even if supervisors demand under-reporting.
• Denying liability based on false time card entries is no longer a valid defense.

Final Thoughts

Workers often feel powerless when forced to choose between job security and fair wages – especially under supervisor pressure. Thankfully, courts continue to reinforce that labor laws exist to protect employees, not penalize them.

If you have concerns about unpaid or unreported overtime, consider seeking guidance from a labor attorney or a local wage and hour authority. No employee should have to work for free.