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Demotion as Constructive Discharge — denied overtime for 6 months

Started by help_me_dev_TX · Nov 5, 2024 · 1,057 views · 12 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
HM
help_me_dev_TX OP

Looking for advice on a legal issue. Here's what happened.

denied overtime for 6 months. I've been dealing with this for about 2 weeks now and the situation isn't improving.

I have worked at this company for 9 years. My position is non-exempt and I do not have a written employment agreement beyond the standard offer letter.

Am I overthinking this or is this a real legal issue worth pursuing?

AF
asking_for_friend_buyer_2024

NAL, but from what I've read, you should send a written demand. That said, definitely get a lawyer to look at the specifics.

FT
first_time_tenant_NC

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

TL
Mod_TermsLaw Moderator

I've handled similar cases. Here's my take on the legal issues.

This is a common situation and the law is fairly clear. Under the FLSA and state wage laws, compensable.

You should consult with a local attorney who handles these cases. Many offer free initial consultations.

NH
need_help_parent_2024

I had a similar issue and ended up consulting with an attorney. It was worth the $200-300 for the initial consultation just to understand my rights.

FF
frustrated_freelancer_2023

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

FT
first_time_employee_2025

Have you tried reaching out to your state's consumer protection office? They sometimes have free resources or mediation services.

TA
TenantRights_Advocate

I've dealt with this before.

The biggest mistake people make in this situation is hiring an attorney to send the initial letter. I'd recommend being patient with the process instead.

RE
RemoteWorker_EU

Not a lawyer, but I have direct experience with this.

The biggest mistake people make in this situation is escalating to a supervisor/manager. I'd recommend following the formal complaint procedure instead.

AS
anon_student_advice

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

SB
SmallBizOwner_NYC

I've seen this play out several times in my field.

In my case, it took about 3-6 months to resolve. The key was having everything documented.

FS
frustrated_student_OH

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

JP
JenP_FormerManager

Former operations manager here -- I was on the employer side of an overtime dispute and want to share that perspective because it helps employees understand how these cases are evaluated internally.

When an employee claims they were denied overtime for six months, the company legal department immediately looks at three things: (1) whether the employee was correctly classified as exempt or non-exempt, (2) whether time records support the claim, and (3) what the supervisor knew and when. If the classification was wrong, the company is usually in serious trouble regardless of intent.

The FLSA exemption analysis under 29 CFR Part 541 requires meeting BOTH a salary basis test (currently 684 dollars per week or 35,568 per year) and a duties test. The most commonly misapplied exemption is the administrative exemption, which requires that the employee primarily perform office or non-manual work directly related to management or general business operations AND exercise discretion and independent judgment on matters of significance. Many employers slap the exempt label on anyone with a title like coordinator or specialist without actually analyzing their duties.

For the constructive discharge element, courts apply the standard from Penn. State Police v. Suders (2004): whether working conditions were so intolerable that a reasonable person would feel compelled to resign. Demotion alone may not meet this standard, but demotion combined with denied overtime, reduced responsibilities, public humiliation, or other adverse actions can collectively satisfy it. Document every adverse change in your working conditions with dates, witnesses, and any written communications.

One practical note: if you are currently still employed and experiencing these issues, file an internal complaint through HR before resigning. This creates a record and triggers the employer obligation to investigate. If they fail to address the issue or retaliate, it strengthens your case enormously. An employment attorney can advise on the best sequence of steps for your specific situation -- many offer free initial consultations for overtime and retaliation claims.