The Overtime Pay Lawsuit: Employee Rights
We all want to be properly compensated for the effort we put in. Yet companies don’t always follow the laws. Perhaps your boss failed to pay you for those extra hours or labeled you as an independent contractor to avoid paying you for overtime. If this sounds familiar, you might be eligible for compensation. Don’t worry about filing an overtime pay lawsuit. At Ethen Ostroff Law, we’ll help get the answers you need and fight for the compensation you deserve.
Understanding Overtime
In the United States, the average workweek is forty hours. If you work more hours than that, you’re normally eligible to overtime pay, which is typically time and a half. This means you’ll be paid 150% of your regular rate for the extra hours. Employers can’t circumvent this by dividing your hours between weeks. Just remember that not everyone is qualified for overtime. It depends on your job, where you work, and how it is classified.
Fair Labor Standards Act Overview
The Fair Labor Standards Act (FLSA) is a key US law that sets rules for pay and working conditions:
- Child Labor: The FLSA has guidelines to protect young workers from unsafe jobs and ensure their work doesn’t interfere with their education. Different jobs have specific rules.
- Hours Worked: It defines what counts as work time, including being on duty, on call, or traveling for work. Short breaks are usually paid, but longer ones might not be.
- Minimum Wage: Since 2009, the federal minimum wage has been $7.25 per hour. If your state has a higher minimum wage, you get that higher rate.
- Overtime Pay: For nonexempt employees, any hours worked over 40 in a week should be paid at least 1.5 times the regular rate.
- Record-Keeping: Employers must keep accurate records of employees’ hours, wages, job titles, and personal details.
FLSA Exemption Categories
Here’s a simple breakdown of FLSA exemptions that determine who doesn’t get overtime pay:
- Administrative Exemption: Office workers who make key decisions and handle business operations.
- Commissioned Sales Employees: Retail or service workers earning over half their income from commissions and at least 1.5 times the minimum wage.
- Computer Employee Exemption: Workers in computer jobs earning at least $27.63 per hour or $58,656 a year (from July 1, 2024) doing programming or similar tasks.
- Executive Exemption: Managers who oversee a business or department, supervising at least two full-time employees, and involved in hiring or firing.
- Highly Compensated Employee Exemption: Employees earning $132,964 a year (from July 1, 2024) and performing executive, administrative, or professional duties.
- Outside Sales Exemption: Salespeople working primarily away from the employer’s business, with no salary minimum.
- Professional Exemption: Workers with specialized knowledge, who need extensive education, like doctors or lawyers.
Industry-Specific Exemptions:
- Agricultural Exemption: Some farmworkers don’t have to follow minimum wage and overtime rules.
- Motor Carrier Exemption: Drivers and related roles are exempt if their work affects vehicle safety in interstate commerce.
- Seasonal and Recreational Establishments: Employees at certain seasonal or recreational businesses may be exempt from minimum wage and overtime pay.
Wage Theft
Wage theft happens when employers fail to pay employees what they’re legally owed, with unpaid overtime being a notable example. If you’ve worked more than standard hours, you’re legally entitled to overtime pay. Withholding it is considered wage theft. This problem is widespread in the US. It affects low-wage workers, immigrants, and people of color the most. Wage theft costs workers billions of dollars each year. Many employees are unaware of their rights or fear retaliation if they speak out. This issue exacerbates the difficulties already experienced by those who are underpaid and receive inadequate benefits. Fortunately, labor laws are evolving, and employment attorneys are working to hold these employers accountable. Employers who are caught skimming salary may be forced to compensate their employees and face penalties.
Common Overtime Pay Violations
Be aware of these common overtime pay issues:
- Improper deductions that lower your pay below minimum wage or overtime rates
- Misclassifying employees as exempt from overtime when they should be eligible
- Missing required breaks if your state mandates them and your employer doesn’t comply
- Not paying for travel time between job sites during your workday
- Off-the-clock work where you’re expected to work before or after clocking in or out
- Skipping overtime pay for hours worked beyond 40 per week
- Unfair rounding of your hours that benefits the employer
- Wrong overtime calculations, especially if you have different pay rates for various tasks
Industries Most Affected by Unpaid Overtime
Certain industries often face issues with unpaid overtime:
- Agriculture: Farmworkers frequently miss out on overtime pay due to low wages and lack of knowledge about their rights.
- Construction: Construction workers commonly face unpaid overtime, with significant amounts owed in back wages.
- Food Services: Restaurants and food service jobs report many cases of unpaid overtime, with thousands of incidents each year.
- Health Care: Healthcare workers, especially in lower-wage roles, often deal with unpaid overtime and misclassification issues.
- Hospitality: Hotel and similar workers frequently encounter unpaid overtime and incorrect pay deductions.
- Retail: Retail workers often face unpaid overtime, job misclassification, and demands for off-the-clock work.
Workers Who Often Miss Out on Overtime Pay
Some groups of workers often miss out on the overtime pay they’re supposed to get. Here’s a breakdown of who’s most affected:
- Low-Wage Workers: People working in jobs like restaurants, retail stores, hotels, and daycares often don’t get the overtime pay they’re owed. They might not be aware of their rights or might be scared to complain.
- Misclassified Employees: Sometimes, workers like those in call centers, factories, or construction sites are incorrectly labeled as exempt from overtime. Employers might call them independent contractors or salaried employees, even if their work doesn’t fit those labels.
- Part-Time and Temporary Workers: If you’re a part-time worker, intern, home care aide, or parking lot attendant, you might not get overtime pay because employers might wrongly think you’re not covered by the rules.
- Salaried Workers: Just because you’re salaried doesn’t mean you don’t get overtime. For instance, nurses, janitors, and gas station attendants might still be entitled to extra pay depending on what they do.
- Tipped Workers: If you earn tips, like restaurant staff or hotel workers, you might miss out on overtime pay if your employer uses your tips to keep your pay below the minimum wage.
- Undocumented Immigrants: Workers without legal papers are especially at risk of missing out on overtime pay because of their status and not knowing their rights.
- Young Workers: Younger employees, including those starting their first jobs or working as gardeners or textile workers, might not know much about overtime rules and might hesitate to question their employer.
Tricks Employers Use to Avoid Overtime Pay
Employers sometimes use sneaky tactics to skip out on paying overtime. Here are a few tricks to watch for:
- Averaging Hours: They might average your hours over a few weeks to avoid paying overtime. For example, if you work 50 hours one week and 30 the next, they could average it out to 40 hours per week, so you don’t get extra pay for those extra hours.
- Comp Time: Instead of paying overtime, some employers offer time off (comp time). This is often illegal because you should get paid for your extra hours, not just get time off.
- Fancy Job Titles: Sometimes, employers give you a high-sounding job title to claim you don’t qualify for overtime. They hope the title will make you think you’re not entitled to extra pay, even if your actual job duties say otherwise.
- Misclassifying Workers: Employers might label you as a salaried employee or independent contractor to avoid paying overtime. This lets them skip paying for the extra hours you work.
- Off-the-Clock Work: They might ask you to do tasks before clocking in or after clocking out without pay, like setting up your workspace or attending meetings outside your regular hours.
- Rounding Down Time: Some employers round down your hours to avoid paying for every minute worked. For example, if you work 8 hours and 2 minutes, they might round it down to 8 hours, leaving out the extra pay you’re owed.
These tricks are illegal and shortchange workers. If you think you’re not getting paid what you deserve, keep track of your hours and consider reporting it or getting legal help.
Filing a Claim for Unpaid Overtime
If you’re missing out on overtime pay, here’s how you can address it:
- State Labor Office: If your employer broke state laws instead of federal ones, you should file with your state’s labor office. Each state has its own process for handling these claims.
- The U.S. Department of Labor’s Wage and Hour Division (WHD): You can file a claim with WHD. They handle unpaid wages and can help you get your money if they find you’re owed.
- Lawsuit in Court: If you can’t sort things out with WHD or state agencies, you can go to court. An unpaid overtime lawyer can help you build your case and get the wages you’re owed.
- Time Limits: Both WHD and state agencies have deadlines for filing claims. Make sure you file before these deadlines pass.
Unpaid Overtime Pay Lawsuit
An unpaid overtime pay lawsuit is when an employee, or a group of employees, takes legal action against their employer for not paying the overtime they’re owed. By law, if you work more than 40 hours a week, you should get extra pay for those additional hours. But sometimes, employers either mess up or deliberately skip this extra pay. An unpaid overtime pay lawsuit is their way to recover the wages they’re owed.
When to Consider Suing for Unpaid Overtime
If you often work over 40 hours a week but aren’t getting paid overtime, you might have a case for an FLSA lawsuit. Before you start, know if you’re eligible for overtime pay. The FLSA outlines who should get overtime. But not everyone is covered by these rules. Make sure your job qualifies for overtime before taking any action.
Eligibility for an Overtime Pay Lawsuit
If you think you have a case for unpaid overtime, here’s what you need to know:
- Employment Status: To sue for unpaid overtime, you need to be a non-exempt employee. This means you’re eligible for overtime pay for hours worked over 40 in a week.
- Hours Worked: You should have worked more than 40 hours in a week without getting the extra pay you’re owed. Overtime pay is typically 1.5 times your regular hourly rate.
- Type of Work: Your job needs to be covered by the FLSA. Most private-sector jobs are, but some government jobs and certain industries might not be.
- Timeframe: You can usually file a claim for unpaid overtime for work done up to two years before your lawsuit. If your employer’s behavior was especially bad, you might be able to go back three years.
- Documentation: Keep good records of your hours and wages. This helps prove how much overtime pay you didn’t get.
- Filing a Lawsuit: You can file an unpaid wages lawsuit on your own or with others who are in the same situation (class action). It’s smart to consult with an employment lawyer to check your case and guide you through the process.
- Protection Against Retaliation: The law protects you from being punished by your employer for filing an overtime pay lawsuit. They can’t demote you, cut your hours, or take other negative actions because you’re standing up for your rights.
Process for Filing an Unpaid Overtime Lawsuit
Here’s a simple guide to filing an unpaid overtime lawsuit:
- Check Your Claim: Review your pay stubs and hours to identify unpaid overtime. Confirm you’re a non-exempt employee and consider consulting an employment lawyer.
- File a Complaint with the Department of Labor: Submit a complaint to the WHD, which will investigate and take action if you’re owed overtime. Be mindful of filing deadlines, usually 2-3 years.
- File a Private Lawsuit in Court: If the WHD doesn’t resolve it, you may need to file an overtime pay lawsuit in court, either individually or as a class action. An attorney can guide you through this.
- Prove Your Unpaid Overtime: Maintain records of your hours and wages. Missing records can help your case, and witness statements and other evidence can support your claim.
- Potential Damages if You Win: Winning may get you back pay at 1.5 times your rate, damages, interest, and penalties. You could also recover legal fees and court costs.
It’s important to act quickly due to strict time limits. Get help from a wage and hour lawsuit attorney.
Proving Unpaid Overtime
When proving unpaid overtime, you’ll need to gather:
- Electronic evidence like computer records, login times, or video footage
- Employer records to compare with your own work logs
- Job-related documentation such as work logs or emails showing extra hours
- Legal assistance to help with gathering evidence and navigating the process
- Personal records of your hours and pay stubs to spot discrepancies
- Witness testimony from coworkers who can confirm your overtime and pay issues
Time Limits for Collecting Unpaid Overtime
You can usually recover unpaid overtime for up to three years from when the issue started. If your employer intentionally ignored the overtime rules, you get a longer three-year period. If not, you generally have up to two years to claim unpaid wages.
In Pennsylvania, the same rules apply. You have up to three years to claim unpaid overtime if the employer’s actions were deliberate. Otherwise, the claim period is generally two years.
Recent Wage and Hour Lawsuit Settlements
In recent years, several big companies have paid out large wage and hour lawsuit settlements. These include:
- ABM Industries paid $140 million to 50,000 janitors after being accused of keeping inaccurate records.
- Amazon settled for $13.5 million to cover warehouse workers for unpaid time spent in security checks.
- CVS Pharmacy paid $10.4 million to California employees for unpaid training time.
Typical Damages in Unpaid Overtime Settlements
When you win an unpaid overtime lawsuit, you might receive:
- Interest on unpaid wages or “liquidated damages” if your employer acted in bad faith
- Legal fees covered if you win your case
- Penalties imposed in some states for underpayment
- Unpaid wages for the overtime pay you earned but didn’t get
Standing Up for Your Hard-Earned Money
Everyone deserves fair pay. If your employer has shortchanged you on overtime or committed wage theft, you have the right to take action. Filing a lawsuit can help you recover what you’re owed. Show that wage theft is unacceptable. At Ethen Ostroff Law, we protect workers’ rights. Contact us for a free case review. We’ll help you assess your case and guide you through the process.
Overtime Pay Lawsuit FAQs
What happens if my boss doesn't pay my overtime?
You can file an overtime pay lawsuit to recover unpaid overtime. An attorney can help you recover what you’re entitled to, as well as additional funds.
Is unpaid overtime illegal in the US?
Yes, it is illegal. According to the FLSA, nonexempt employees must be paid overtime for any hours worked in excess of 40 per week.
What is the FLSA overtime exemption lawsuit 2024?
It’s a legal measure to ensure that employees who deserve overtime aren’t mistakenly categorized as exempt. These cases assist employees in receiving the overtime pay that they’re entitled to.
