Understanding Overtime Pay Violations

Federal Laws

The Fair Labor Standards Act (FLSA) requires covered employers to pay non-exempt employees overtime pay for all hours worked over 40 in a workweek at a rate not less than 1.5 times their regular rate of pay. The law also requires accurate timekeeping and prohibits employers from falsifying records to avoid overtime liability.

State Laws

Many states provide additional protections, including:

• Daily overtime requirements (overtime after 8 hours in a single day)
• Higher overtime pay rates
• Stricter recordkeeping obligations
• Broader coverage for certain types of employees

• Paying straight time for hours worked over 40 in a week
• Misclassifying employees as exempt to avoid paying overtime
• Failing to include bonuses, commissions, or shift differentials in the regular rate of pay calculation
• Requiring employees to work “off the clock” before or after scheduled shifts
• Averaging hours over multiple weeks to avoid triggering overtime pay

 Evidence may include:

• Time records showing overtime hours worked without proper pay
• Payroll records reflecting incorrect overtime calculations
• Communications instructing employees to work off the clock
• Documentation of job duties inconsistent with exempt status
• Testimony from employees or coworkers about unpaid overtime work

Federal and state laws prohibit employers from retaliating against employees who:

• Request or demand overtime pay
• File a wage and hour complaint
• Participate in a labor investigation

Retaliation may include termination, demotion, reduction in hours, or other adverse actions.

Potential remedies may include:

• Back pay for unpaid overtime wages
• Liquidated damages equal to the amount of unpaid overtime, unless employer can demonstrate good faith and reasonable basis for believing otherwise
• Attorneys’ fees and litigation costs
• Court orders requiring employers to comply with overtime laws

Employers can reduce risk by:

• Maintaining accurate timekeeping records
• Properly classifying employees under FLSA guidelines
• Including all eligible compensation in the regular rate of pay calculation
• Monitoring workloads to ensure overtime is properly compensated

Miller Shah LLP is prepared to evaluate and pursue overtime pay violation matters on behalf of employees who have been denied lawfully earned overtime wages. The firm’s attorneys assess claims under federal and state wage and hour laws and advocate for remedies to address unlawful pay practices.