Though you earn an hourly wage, you typically get paid every two weeks. This means that there are generally two pay dates every month, although some months will have three, depending on when those dates fall and how many days are in the month.
One week, you end up working 50 hours. The company has a project that needs to get done, and you are excited to be paid overtime for the extra 10 hours.
However, when your paycheck comes, you realize you did not actually make any overtime pay at all. The company had a slow week after the project was completed, and they only needed you to work 30 hours. Your boss just averaged that out over the two weeks, paying you for 40 hours each week. Is this legal?
Averaging is illegal
No, it is not permissible for your boss to average your hours. You would still need to be paid for the 10 hours of overtime, at time and a half your normal rate. Even though you worked 80 hours in total, you should still be paid for 50 hours the first week and 30 hours the second week.
Often, the reason that employers try to average things out is not just for convenience. They are deliberately trying to get out of paying you time and a half. This is a form of wage theft, and it means you are being paid less than you deserve.
Your employer may insist that they can average your hours if they want, but that is not the case under the law. If you believe you have experienced wage theft, be sure you know what legal steps to take.