If your employer didn't pay you time-and-a-half for hours over 40 per week, you're likely entitled to the unpaid overtime wages PLUS an equal amount in liquidated damages—effectively doubling your recovery. The Fair Labor Standards Act (FLSA) protects most workers, regardless of job title. Average settlements: $38,000+.
Unpaid overtime occurs when your employer fails to pay you time-and-a-half (1.5× your regular rate) for hours worked over 40 in a workweek. Under the Fair Labor Standards Act (FLSA), most employees are entitled to overtime pay—job title doesn't matter.
If you're a non-exempt employee and you work more than 40 hours in a single workweek, you must be paid at least 1.5 times your regular rate for every hour over 40. This applies regardless of whether you're paid hourly or salaried.
You earn $20/hour and work 50 hours in a week. You should receive:
If your employer only paid you $20/hour for all 50 hours ($1,000), they owe you $300 in unpaid overtime for that week alone.
FLSA covers nearly all private sector employees and most public sector workers. There are exemptions (discussed below), but they're narrower than most employers claim. If you're unsure whether you're exempt, you probably aren't—consult an attorney.
The FLSA presumes all employees are entitled to overtime unless the employer proves an exemption applies. The burden is on the employer to show you're exempt—not on you to prove you're non-exempt.
Unless your employer can prove you meet ALL requirements of a specific exemption, you are entitled to overtime. Most workers are non-exempt, including:
FALSE. Being paid a salary doesn't automatically make you exempt. You must meet specific tests (salary level + duties test). Many salaried workers are legally entitled to overtime.
If you earn less than $35,568/year, you are almost certainly entitled to overtime regardless of your job title or duties.
Understanding whether you're exempt or non-exempt is critical to knowing if you're owed overtime.
MUST be paid overtime for hours over 40/week
NOT entitled to overtime pay, regardless of hours worked.
Your job title is legally irrelevant. What matters is what you actually do day-to-day. Courts look at your PRIMARY duties—the tasks you spend most of your time performing.
You're called an "Operations Manager" but you spend 70% of your time on the production line doing the same assembly work as hourly workers, and 30% managing inventory and schedules. Even if you earn $50,000/year, you're likely non-exempt because your primary duty is non-exempt production work, not management.
The Department of Labor estimates that more than 40% of workers classified as exempt are actually misclassified and should be receiving overtime.
Salary: At least $35,568/year ($684/week)
Primary duty: Managing the enterprise or a recognized department/subdivision
Must: Customarily and regularly direct the work of at least 2 full-time employees (or equivalent)
Must: Have authority to hire/fire, or recommendations are given particular weight
Reality check: If you don't actually hire, fire, or discipline employees, you're not an executive. "Shift lead" or "team lead" titles without real authority don't count.
Salary: At least $35,568/year ($684/week)
Primary duty: Office or non-manual work directly related to management or general business operations
Must: Exercise discretion and independent judgment on matters of significance
Reality check: Following procedures, applying policies made by others, or doing routine clerical work doesn't meet this test. "Administrative assistant" roles are almost never exempt—the title is misleading.
Examples that DO qualify: HR manager who develops policies, financial analyst who makes strategic recommendations, marketing director who sets campaigns
Examples that DON'T qualify: Secretary who schedules meetings, data entry clerk who processes claims, customer service rep who applies refund policy
Two types: Learned professional and Creative professional
Learned Professional:
Creative Professional:
Reality check: Paralegals, nurses (most), lab techs, and junior engineers often don't qualify because they work under supervision and follow established procedures rather than exercising independent professional judgment.
Employers use many tactics to avoid paying overtime. Here are the most common violations:
Requiring you to work before clocking in, after clocking out, or during breaks. All time worked must be paid, including prep work, cleanup, responding to emails/calls after hours, or mandatory training.
Calling you a "manager" or "administrator" when your actual duties don't meet the exemption tests. Title is irrelevant—what you actually do matters.
Offering time off instead of overtime pay. This is illegal in the private sector (allowed only for government employees under strict rules). You must be paid in money, not time.
Claiming that working 50 hours one week and 30 hours the next "averages out" to 40. WRONG. Overtime is calculated weekly—each workweek stands alone.
Short breaks (5-20 minutes) must be paid and count toward your 40 hours. Only bona fide meal breaks (30+ minutes where you're completely relieved of duties) can be unpaid.
If you're required to answer phones, monitor equipment, or remain at your desk during lunch, that time must be paid. If you can't leave the premises or must remain "on call," it's likely work time.
Travel time during the workday (between job sites) must be paid. Commuting to/from home is generally not paid, but travel from home to a distant worksite (not your usual location) often is.
Calling you a 1099 contractor when you're really an employee. If the company controls when, where, and how you work, you're an employee entitled to overtime, not a contractor.
Employers frequently misclassify non-exempt workers as exempt to avoid paying overtime. Here are real-world examples of illegal misclassification:
The situation: Retail "assistant manager" earning $42,000/year who stocks shelves, operates cash register, helps customers—same work as hourly associates. Has no authority to hire, fire, or discipline. Occasionally writes schedules when the real manager is off.
The reality: Non-exempt. Title is meaningless. Primary duty is non-exempt retail work. Occasional scheduling doesn't make them an executive. They should get overtime for any hours over 40.
The situation: Office worker titled "Administrative Assistant" earning $38,000/year. Duties: answer phones, schedule meetings, file documents, process expense reports, maintain office supplies, greet visitors.
The reality: Non-exempt. Classic clerical/secretarial work. No independent judgment on matters of significance. The "administrative" in the title is misleading—this is NOT the administrative exemption. Entitled to overtime.
The situation: Delivery driver receives 1099 form, told they're an "independent contractor." Must work assigned shifts, use company app/procedures, wear company uniform, can't work for competitors, uses company equipment. Paid per delivery, averages $600/week for 50+ hours.
The reality: Misclassified employee, non-exempt. Company controls when, where, how they work. Should be W-2 employee entitled to minimum wage and overtime. Can recover unpaid overtime and liquidated damages.
The situation: IT worker titled "Systems Administrator" earning $55,000/year. Duties: reset passwords, troubleshoot user issues following ticketing system, install software using standard procedures, replace hardware. Follows playbooks created by senior staff.
The reality: Likely non-exempt. Despite salary above threshold and technical title, work is routine troubleshooting, not systems administration requiring independent judgment. True sysadmins design architecture, make security decisions, develop policies. This is help desk work. Probably entitled to overtime.
The situation: Mortgage loan officer earning $48,000/year salary. Collects customer documents, enters data into loan software, checks credit reports, submits applications for underwriter approval. No authority to approve/deny loans.
The reality: Non-exempt. Administrative exemption requires independent judgment on matters of significance. Following underwriting guidelines and processing applications isn't independent judgment—the underwriter makes the decision. Should receive overtime.
The situation: Restaurant GM earning $65,000/year. Hires and fires all staff, sets work schedules, determines menu prices and specials, manages P&L, handles vendor negotiations, works 60 hours/week but spends 70%+ of time on management duties.
The reality: Properly exempt under executive exemption. Meets salary test, manages 2+ employees, has hire/fire authority, primary duty is management. No overtime required.
Calculating what you're owed is straightforward once you know your regular rate and overtime hours. Here's the step-by-step process:
1. Regular Rate = Regular Rate = Your hourly pay (or salary ÷ hours if salaried non-exempt)
2. Overtime Rate = Overtime Rate = Regular Rate × 1.5
3. Overtime Pay Owed = Overtime Pay Owed = Overtime Rate × Overtime Hours
4. Total Recovery = Total Recovery = Overtime Pay Owed × 2 (includes liquidated damages)
Facts: You earn $20/hour, worked 50 hours per week for 2 years (104 weeks)
Step 1: Regular rate = $20/hour
Step 2: Overtime rate = $20 × 1.5 = $30/hour
Step 3: Overtime hours per week = 10 (50 total - 40 regular)
Step 4: Weekly overtime pay owed = $30 × 10 = $300
Step 5: Total overtime pay (2 years) = $300 × 104 weeks = $31,200
Step 6: Add liquidated damages = $31,200 × 2 = $62,400 total recovery
Facts: You earn $40,000/year salary but are misclassified (should be non-exempt). You worked 50 hours/week for 1 year.
Step 1: Convert salary to hourly: $40,000 ÷ 52 weeks ÷ 40 hours = $19.23/hour
Step 2: Overtime rate = $19.23 × 1.5 = $28.85/hour
Step 3: Overtime hours per week = 10 (50 total - 40 regular)
Step 4: Weekly overtime pay owed = $28.85 × 10 = $288.50
Step 5: Total overtime pay (1 year) = $288.50 × 52 weeks = $15,002
Step 6: Add liquidated damages = $15,002 × 2 = $30,004 total recovery
For salaried non-exempt workers, you're still entitled to your full salary PLUS overtime for hours over 40.
Facts: You have a salary that covers ALL hours (agreement states salary covers however many hours you work), hours vary week to week. Earn $800/week flat salary.
Week 1: Worked 35 hours → Regular rate = $800 ÷ 35 = $22.86/hour → No overtime
Week 2: Worked 50 hours → Regular rate = $800 ÷ 50 = $16/hour → Overtime = $16 × 0.5 × 10 hours = $80
This method pays only half-time (0.5×) for overtime because the salary already compensates regular time. It requires a clear agreement and can only be used in limited circumstances. Most salaried non-exempt workers use the standard method above.
Your "regular rate" for overtime calculations must include all forms of compensation, not just base pay:
If you received a $5,000 annual production bonus, that must be divided across all hours worked that year and added to your regular rate before calculating overtime. This often increases what you're owed.
Under the Fair Labor Standards Act, liquidated damages are not a penalty on the employer—they're additional compensation for you equal to your unpaid wages. This effectively doubles what you recover.
The law presumes you're entitled to liquidated damages unless the employer proves they acted in "good faith" and had "reasonable grounds" to believe they weren't violating FLSA. This is a high bar for employers. Most overtime violations result in liquidated damages.
Unpaid Overtime Wages
The actual overtime pay you should have received
Liquidated Damages
Equal amount to unpaid wages (doubles recovery)
Attorney Fees & Costs
Your employer pays your legal fees if you win
Unpaid overtime: $15,000 (2 years of violations)
Liquidated damages: $15,000 (equal to unpaid wages)
Attorney fees: $12,000 (paid by employer)
Your total recovery: $30,000
Plus your attorney gets $12,000 from the employer, so the entire legal process costs you nothing if you win.
On June 27, 2025, the Department of Labor issued a new policy: the Wage and Hour Division will no longer seek liquidated damages in pre-litigation settlements. This means:
For significant amounts owed, filing a private lawsuit may result in much higher recovery (2x) than settling through DOL pre-litigation.
Employers can avoid liquidated damages only if they prove BOTH:
This is difficult to prove. Relying on advice from an attorney or consultant can help, but simply being ignorant of the law doesn't qualify. Courts award liquidated damages in the vast majority of FLSA cases.
While FLSA sets federal minimum standards, several states have their own overtime laws—often more generous than federal law. When both apply, you get whichever provides greater protection.
If federal and state law both apply to your situation, you're entitled to whichever provides greater benefits. For example, if federal FLSA requires overtime but state law has a higher salary threshold making you eligible when federal law wouldn't, you use state law.
Executive/Admin exemption: 2× minimum wage for full-time work
($1,280/week)
Based on CA minimum wage of $16/hour × 2 × 2,080 hours. Much higher than federal $35,568. California also has unique rules: daily overtime (over 8 hours/day), double-time after 12 hours/day, and overtime for 7th consecutive day worked.
Varies by region and industry
Depends on location
NYC: $58,500 for most, $62,400 for small employers (10 or fewer). Westchester/Long Island: Higher than federal. Upstate NY: May use federal threshold. Check specific location.
Based on state minimum wage formula
($1,259/week) for 2025
Washington uses a multiplier of state minimum wage. The threshold increases each year with minimum wage adjustments.
Indexed to state minimum wage
2025 (pending final rate)
Colorado's threshold is recalculated annually based on state minimum wage increases.
Modestly above federal
Range (2025)
Both states have salary thresholds above the federal $35,568 but lower than CA, NY, WA.
Alaska requires overtime after 8 hours in a day OR 40 hours in a week, whichever provides more compensation. Similar to California but without the double-time provision.
If you make less than 1.5× minimum wage ($18/hour as of 2024), you get overtime after 8 hours/day. Otherwise, standard 40 hours/week rule applies.
If you work in a state with stronger protections than federal law:
You have two main options for pursuing unpaid overtime: filing a complaint with the Department of Labor or filing a lawsuit. Each has advantages depending on your situation.
Advantages:
Disadvantages:
How to file:
Visit dol.gov/agencies/whd/contact/complaints or call 1-866-487-2365. Provide employer details, your job duties, hours worked, and pay received.
Advantages:
Disadvantages:
How to start:
Consult an employment attorney who handles wage and hour cases. Most offer free consultations and work on contingency (no fee unless you win, typically 33-40% of recovery).
If you file a lawsuit, DOL will close their investigation and defer to the court. If DOL files a lawsuit on your behalf, you cannot file your own separate lawsuit. Choose your path carefully:
Federal (FLSA): Federal (FLSA): 2 years from violation (3 years if willful). Each week you wait is potentially a week of wages you can't recover.
State laws: State laws: Vary (California: 3-4 years; New York: 6 years for liquidated damages). Check your state's statute of limitations.
Don't delay. Consult an attorney or file a DOL complaint now. The clock is ticking on your recovery.
Estimate your potential recovery including liquidated damages. This calculator assumes you're entitled to overtime—if you're unsure about your exemption status, consult an attorney.
Get an estimate of your potential compensation
This calculation includes unpaid overtime wages PLUS liquidated damages (doubling your recovery). Attorney fees would be paid by your employer if you win, so the estimate is what you'd receive.
Note: If you file through DOL (instead of lawsuit), you may only receive unpaid wages without liquidated damages due to new 2025 policy. Consult an attorney to maximize recovery.
Overtime laws vary by jurisdiction - federal FLSA requires 1.5x after 40 hours, but California mandates daily overtime and has different exemption thresholds. Our AI analyzes your jurisdiction's specific rules, salary threshold ($58,656 federal, higher in some states), and calculates your recovery including liquidated damages (2x your unpaid wages). Don't let your employer keep wages you've already earned.