Miscalculated Overtime Lawsuits
Last Updated on October 28, 2025
At A Glance
- This Alert Affects:
- Anyone who earns bonuses, shift pay differentials or other types of compensation in addition to their hourly wage.
- What's Going On?
- Attorneys believe some employers may be failing to take into account bonuses, shift pay differentials or other types of compensation when calculating employees' overtime pay rates. As a result, workers could be getting cheated out of wages – and the attorneys are looking into whether lawsuits can be filed on their behalf.
- How Could an Overtime Lawsuit Help?
- If filed and successful, a lawsuit could help workers recover wages they may be owed due to miscalculated overtime rates. It could also force their employer to change its pay practices.
- What You Can Do:
- If you think your overtime pay is being miscalculated, fill out the form on this page. An attorney or legal representative may then reach out to you directly to learn more about how you're getting paid and whether you're missing out on wages. There's no cost to speak with someone, and you're not obligated to take legal action if you don't want to.
- Can I Get Fired?
- Federal law prohibits employers from firing, demoting or otherwise retaliating against employees who report overtime violations or otherwise exercise their legal rights.
Attorneys working with ClassAction.org are looking into whether lawsuits can be filed on behalf of employees whose overtime pay rates may not have been calculated properly.
They believe some employers may be leaving out additional forms of compensation, such as bonuses, when calculating workers’ regular rates of pay – which are used to determine the “time-and-a-half” or overtime pay rate – in violation of federal law. Lawsuits may be able to help workers recover wages they may have lost as a result of the miscalculation and help ensure that they get paid properly when working overtime in the future.
If you suspect you may have been underpaid for overtime, fill out the form on this page to get in touch.
What Should Be Included in Overtime Pay Calculations?
The Fair Labor Standards Act (FLSA) sets the rules and regulations for overtime pay, who receives it, and how it must be paid. The Act states that, for the purposes of calculating overtime pay, the employer must take into account the following.
Bonuses
The FLSA states that non-discretionary bonuses paid during the pay period must be included when determining an employee’s regular rate of pay. Non-discretionary bonuses are those given to employees to encourage them to work more efficiently and to stay at their jobs.
Non-discretionary bonuses paid over a series of pay periods must also be included. For instance, assume a hospital gives its nursing assistants a $5000 bonus after being employed for six months. That amount must be taken into account if the nurse works overtime during that six-month period.
Shift Differentials
Employers must also take into account shift differentials when calculating overtime. This includes premium pay for night shifts. For instance, if an employee works two eight-hour shifts at an hourly pay rate of $15 and three eight-hour night shifts for $20 per hour, both forms of compensation must be taken into account when determining his or her overtime pay rate.
Multiple Rates of Pay
Assume a receptionist works during the week for $10 an hour, but fulfills advertising and social media services for the same company on the weekends at a pay rate of $15 per hour. Both rates of pay must be included when calculating his or her overtime rate.
What Pay Is Not Included for Purposes of Calculating Overtime?
Regular rates of pay do not include:
Money paid as gifts for the holidays, birthdays or other special occasions
Premium payments for overtime or holiday/weekend work
Life insurance or health benefits
Travel expenses, laundering costs and supply/material purchases
Sick or vacation pay
Lawsuit Examples: Which Workers Have Taken Action?
Lawsuits have been filed on behalf of the following types of workers who claim their overtime pay was miscalculated:
- Nursing assistants
- Jewelry retail store workers
- Apartment and residential management workers
- Service technicians
- Retail workers and consultants
- Retirement community workers
- Brewery workers
Attorneys are also looking into whether workers in industries such as healthcare, manufacturing, biotech and meatpacking, among others, are being paid properly for overtime.
Overtime Miscalculated? Here’s What You Can Do
If your regular rate on your paystub is strictly your hourly rate – and does not include bonuses or other forms of payment – you may be getting cheated out of overtime wages. To find out what you can do about it, fill out the form on this page.
After you get in touch, an attorney or legal representative may reach out to you directly for more information, including how you’re being paid and how many extra hours you’re working. It doesn’t cost anything to speak with someone, and federal law prohibits your employer from retaliating against you for exercising your legal rights.
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