Overtime Rate Errors Attorneys

We Help You Get The Compensation You Deserve

Overtime pay is a critical component of fair compensation under the Fair Labor Standards Act (FLSA), ensuring that employees receive proper wages for hours worked beyond the standard 40-hour workweek.

Despite these protections, many workers encounter overtime pay issues, ranging from simple calculation errors to intentional violations. It’s important to understand what qualifies as an overtime violation, how to verify it, and the steps you can take to resolve the issue.

If you need guidance, our overtime rate error lawyers at Nichols Kaster, PLLP can help. Dial us at (877) 344-4628 or contact us online now!

What Qualifies As An Overtime Rate Miscalculation?

An overtime rate miscalculation occurs when an employer incorrectly determines the amount of overtime pay an employee is entitled to receive.

Under the Fair Labor Standards Act, overtime compensation generally must be paid to covered employees (e.g., employees who are not subject to an exemption from the overtime protections) at a rate of at least 1.5 times their regular rate of pay for hours worked in excess of 40 per workweek.

Overtime Pay Calculation Details

The amount of overtime due to a worker is based on their regular rate of pay and hours worked in a workweek. Overtime compensation must be calculated by dividing the total pay (except for certain statutory exclusions) in the workweek by the hours worked to determine the regular rate.

What compensation has to be included in the regular rate can be complicated and our team is here to help. For example, payments for certain gifts, leave, reasonable business expense reimbursements, discretionary bonuses, profit sharing, employer contributions to benefits plans, premium payments for non-FLSA overtime, and stock options are likely excludable compensation.

However, generally, all compensation for hours worked, services rendered, or performance must be included in the regular rate. Whether a particular payment may be excluded from the regular rate requires a review of the applicable statutes to see if it meets the requirements for exclusions.

Examples of Potential Overtime Pay Calculation Errors

Paying straight time (the employee’s regular rate of pay) for overtime worked, rather than 1.5 times the regular rate of pay. We commonly see this problem in the home healthcare industry and for field service technicians.

Failing to include or commission earnings when calculating overtime rate of pay. This is common in sales jobs.

Failing to include non-discretionary bonuses (such as production-based bonuses) when calculating the regular rate of pay used to calculate overtime pay.

Paying on a day rate only, with no additional half-time overtime premium for hours worked over 40 in a workweek. This is especially prevalent in the oil and gas industry and healthcare industry.

Paying workers significant sign-on bonuses and/or restricted stock units but not including the value of that compensation when calculating the overtime rate of pay.

What Can You Do About Potential Violations Of Overtime Laws?

If you suspect an overtime violation:

• Review Your Pay Stubs: Compare the overtime pay you’ve received with the calculated amount based on your regular rate of pay and the total number of overtime hours worked.
• Document Evidence: Keep detailed records of hours worked, wages received, and any communications with your employer about overtime.
• Talk to Your Employer: Consider discussing your concerns with your employer or HR department. Request a formal review and correction of any pay discrepancies.
• Seek Legal Advice: If the issue is not resolved, consult with an overtime rate error attorney to discuss your case and explore legal options, including filing a lawsuit or negotiating a settlement.

Our lawyers and staff are trained to recognize overtime calculation errors and are available to discuss whether your overtime pay is being calculated correctly. 
Contact us today!

What Damages Can You Recover In Case Of Winning An Overtime Violation Case?

If successful in an overtime rate miscalculation case, you may be entitled to:

• Back Pay: The amount of unpaid overtime wages due.
• Liquidated Damages: Additional compensation equal to the amount of unpaid overtime, effectively doubling your recovery.
• Attorney’s Fees and Costs: Reimbursement for legal fees and other costs associated with filing the claim.
• Reinstatement: In some cases, reinstatement to your position if you were terminated in retaliation.

Do You Need Support With Your Case? Contact Nichols Kaster's Attorneys Today!

Overtime pay issues can be complex and stressful, but you don’t have to face it alone. At Nichols Kaster PLLP, our overtime violation attorneys are dedicated to protecting your rights and ensuring you receive the compensation you're entitled to under the law.

Whether you’re dealing with miscalculations or other overtime pay disputes, we are here to provide expert legal guidance and support.

Serving clients across Minnesota and California, our team is well-versed in both state and federal labor laws. We are committed to advocating for your interests and working to achieve a favorable resolution for your case.

Don’t let overtime pay discrepancies go unaddressed. Contact Nichols Kaster, PLLP today to schedule a consultation with one of our skilled attorneys. Let us help you understand your rights, evaluate your case, and take the necessary steps to secure the fair compensation you deserve.

Call now at (877) 344-4628 or contact us online to schedule your consultation with our legal team.