Man putting cash into pocket
“Overtime avoidance” is more common at workplaces where workers have fewer bargaining rights, researchers said.
  • Companies are getting away with not paying their workers for overtime, a new NBER paper shows.
  • That's because of a loophole in federal law where employers don't have to pay managers overtime.
  • Companies have also been cutting pay for other workers by classifying them as contractors.

It's not just workers who can exaggerate their job titles — their employers are doing it too, and it's to avoid paying them for their work.