My wife works for a doctors office in our town. When she started, she signed a contract that stated she would recieve her vacation hours based on the hours worked the month prior. The scale started with 32 hours and up. Now after a year of this the office manager decided to change the rules and scale so that if they do not work at least an average of 35 hours they will recieve no vacation time. The problem is they also changed the schedule so that the employees have a day off durring the week so they are only scheduled for 32 hours. Also the office manager placed a new policy that states no employee is allowed overtime without prior permission. If they work over the 40 hours then it will be paid as straight time. Can the office manager make policy changes when they are not the policy agreed on at the begining of employment?

Is it a company policy or a bona fide, enforceable employment contract. Such contracts are pretty uncommon for anyone but high-level managers, VPs, etc. Is it possible that this "contract" is simply an offer letter? If so, the employer retains the right, generally speaking, to change policies at any time at their discretion and a well-written handbook will contain this disclaimer.

However, the employer cannot refuse to pay overtime premium if overtime is worked. They may, however, discipline the employee for not following the policy of getting the overtime approved before it is worked in any other legal manner, including termination.

Barring a binding and enforceable contract that says otherwise, yes they can. Under SC state law, an employer may change their policies as long as the employees are given written notice of the change at least 7 days in advance of the change going into effect. Your wife will have to get an opinion from a SC attorney as to whether or not what she signed is binding and enforceable.

BTW, if the employer were prohibited from making any changes to what was agreed to at hire, you could never get a raise or an increase in benefits. Is that really how you want the law to read?

The only thing I see that is illegal is that if an employee works unauthorized overtime, they still have to be paid at time and a half. However, they can be disciplined in any other way, up to and including termination, for working unauthorized overtime. No violation has occurred until someone actually is only paid at straight time for hours over 40.