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Is it tax fraud for employer to lie about overtime

Portland, OR |

About five or six employees were not paid overtime. They instead were given 5 hours to their checks, supposedly by the employer. Is this legal?

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Attorney answers 5


It is not legal but it is not tax fraud. If you are a non-exempt worker entitled to overtime under the Fair Labor Standards Act then it is a violation of federal law. You should contact a local attorney experienced in overtime litigation and the FLSA.


As accurately stated by my colleague, this is not an issue of tax fraud but one of failure to pay overtime under the FLSA. In addition to any federal claim, most states have their own laws that cover and provide legal remedies for overtime issues that often include attorney fees.

Speak with a local employment lawyer to discuss options.

This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.


Labor value measurement is under state rules. For example, california has an 8 hour per day rule and most of the other U.S. is 40 hours per week. Could this be the source of your disagreement?

Curt Harrington Patent & Tax Law Attorney Certified Tax Specialist by the California Board of Legal Specialization PATENTAX.COM This communication is general information and not legal advice, and does not create an attorney-client relationship. This communication should not be relied upon as any type of legal advice. Please note that no attorney-client relationship exists between the sender and the recipient of this message in the absence of either (1) a signed fee contract and (2) remission of an agreed-upon retainer. Absent such an agreement and retainer, I am not engaged by you as an attorney, nor is any other member of my law firm.


As stated by the other responders, this is not a tax fraud question at all, but a question of what might be required by contract and state and federal law. I'm not sure I understand what you mean when you say:

"They instead were given 5 hours to their checks, supposedly by the employer."

The bottom line is that if the employer for any reason owes them more than they received, they can make a claim and very well may be in a position to seek penalties, attorneys fees and/or interest.

Is there enough at stake to make it worthwhile? Discuss the circumstances with an employment lawyer and sort it out.

This comment is general in nature and is not intended as legal advice. It does not create an attorney client relationship and obviously is not confidential. You should contact an attorney in your area who can review with you all of the relevant facts and give you specific legal advice.


In Oregon it is a crime, and can result in civil liability.

Information is provided to assist the reader in forming questions and allow them to take full advantage of a consultation with the attorney of their choice. Schuck Law, LLC does not provide legal advice to individuals who have not signed a written fee agreement with the firm. The facts, which were not disclosed in the written question may change the advice, if any, that would be rendered by the attorneys at Schuck Law, LLC. For these and other reasons, Schuck Law, LLC is not responsible for any damages caused by the reader's use, mis-use, or interpretation of the information provided herein.

David A Schuck

David A Schuck


You can recover unpaid overtime wages, plus a civil penalty under Oregon law which could eqaul 30 days of wages. Further, if your employment has ended, the employer could have to pay a second 30 days of penalty wages. Finally, under the FLSA, (Fair Labor Standards Act) the federal overtime laws, if the employee or employer are covered by the act, then not only can the employer be liable, but the manager who caused it could be liable as well.

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