Did you ever punch out and question whether you got paid for every hour you worked?
You’re not alone.
Thousands of employees are being shortchanged every week. And it’s happening behind your back. The good news is Unpaid overtime claims are one of the easiest cases for an employee to win. Armed with sufficient evidence, workers get their wages back + excess damages all the time.
In this article you will discover how unpaid overtime claims work and why they usually go in the worker’s favour.
Here’s what’s covered:
- What Are Unpaid Overtime Claims?
- Why Unpaid Overtime Claims Often Succeed
- Common Ways Employers Underpay Workers
- How to Spot Unpaid Overtime Violations
- Steps to File An Unpaid Overtime Claim
- What You Can Recover
What Are Unpaid Overtime Claims?
An unpaid overtime lawsuit is a lawsuit by an employee against an employer regarding non-payment for time worked beyond 40 hours in a week.
Sounds simple, right?
According to the Fair Labor Standards Act (FLSA), non-exempt employees are owed time-and-a-half for hours worked beyond forty (in a week). An employer who fails to pay this premium allows the employee to make a claim to recover those wages.
These are claims that are core to employee rights in America. They prevent worker exploitation and penalize employers who cheat on payroll.
If you think your boss is ripping you off, your best course of action is to contact a Little Rock employment law firm that specializes in wage and hour claims. They can look at your pay stubs and let you know immediately if you have a valid claim.
Why Unpaid Overtime Claims Often Succeed
Here’s the thing about unpaid overtime claims…
They are some of the easiest employment cases to win.
Why? Because it’s stacked up against them. The burden of proof is on the employer to maintain records. If they haven’t made a record they likely can’t defend themselves in court.
The numbers tell the story.
During fiscal year 2024, the U.S. Department of Labor’s Wage and Hour Division recovered $126.9 million in back wages owed to 101,043 workers for overtime violations. That was just ONE YEAR from ONE AGENCY.
Wait, there’s more! From January 2021 through September 2024, the DOL reclaimed over $1 billion in stolen wages for over 615,000 workers.
Here’s why unpaid overtime claims keep winning:
- The law is clear: The FLSA spells out who qualifies for overtime
- Employers must prove compliance: Employers need to demonstrate compliance, not workers show they’ve been unpaid
- Damages can be doubled: A lot of the cases involve liquidated damages, doubling your back pay
- Retaliation is illegal: Workers are protected from being fired for filing a claim
When an employer breaks the rules, the system is designed to make them pay.
Common Ways Employers Underpay Workers
There are only a few common types of overtime violations. Learn them so you can tell when your paycheck isn’t right.
Here are the biggest ones to watch for:
- Misclassification: Labelling employees as “exempt” or as independent contractors when they aren’t
- Off-the-clock work: Requesting workers perform setup/cleanup/email correspondence when they’re not being paid
- Comp time instead of overtime: Providing employees with time off in lieu of overtime pay they are legally owed
- Averaging hours: Averaging hours across two weeks to dodge a 40-hour overtime trigger
- Auto-deducting breaks: Deducting meal breaks from time cards even if the worker did not take the break and continued to work
Misclassification. Research indicates that between 10% and 20% of employers incorrectly classify at least one employee as an independent contractor.
That’s a lot of unpaid overtime floating around.
How to Spot Unpaid Overtime Violations
Don’t know if you’ve been short-changed? Watch for these warning signs on your job/pay stubs.
Warning signs your overtime is being stolen:
- You’re salaried but doing duties that don’t qualify as exempt
- Your timesheets get edited or rounded down
- You’re told to work through lunch but the break is still deducted
- Your boss asks you to clock out before finishing tasks
- Pre-shift or post-shift work isn’t being paid
If you relate to any of these, you could already have a strong case right there on your pay stubs.
The other good news?
You don’t need an attorney to file. The Dept. of Labor will file your complaint. Most lawyers will work on contingency. You only get charged if you win.
Steps to File An Unpaid Overtime Claim
Filing a claim is more straightforward than most workers think.
The steps look like this:
- Gather your records. Pay stubs, schedules, time cards and emails – keep everything
- Write down your hours. If your employer failed to record hours, your record can be used as evidence
- Talk to a wage and hour attorney. Most offer a free first consultation
- File a complaint with the DOL or a private lawsuit. Your attorney will advise you as to which option is preferable
- Negotiate or go to court. Most cases settle very quickly. Employers realize the risk of losing
The statute of limitations applies in this case. You typically have two years to file under the FLSA, three if they willfully violated it.
Don’t wait too long, or you could lose money you are owed.
What You Can Recover
This is the part most workers don’t realise…
If you win your unpaid overtime claim you can recover not only the back wages you are owed. You can also recover:
- Back pay for every unpaid hour
- Liquidated damages equal to the back pay (effectively doubling your award)
- Attorney’s fees paid by the employer
- Interest on unpaid amounts in some cases
For example, a healthcare employer was ordered by federal court to pay $35.8 million in back wages and damages due to years of unpaid overtime.
That’s how serious these cases get.
Big bucks. 2021’s 10 largest wage and hour settlements exceeded $640 million.
Final Thoughts
Unpaid overtime claims succeed because the law favors the employee. Employees are entitled to get paid for every hour worked. When an employer fails to do so, the courts intervene.
To quickly recap:
- Most non-exempt workers are entitled to overtime pay
- Employers must keep accurate records or risk losing the case
- Common violations include misclassification and off-the-clock work
- You have 2 to 3 years to file your claim
- Claims can double back pay through liquidated damages
Believe your overtime is being stolen? Don’t sit around. Get your records together, consult with an attorney and take that first step.
The system was designed for workers like you – and it works better than you might think.
