"Comp Time"

If you have been getting “comp time” for working overtime in a week, your employer may be violating the FLSA overtime wage laws.   For example, if you work 50 hours in a workweek and are told that you can have time off for this extra ten hours you are not properly being paid for your overtime work.  The FLSA requires that your employer pay you time and a half for overtime work.  Unless there is an agreement between you and your employer to substitute comp time for overtime you are not properly being paid for your overtime work.  Even if an agreement exists, your employer must provide 1 and ½ hours leave for every hour you work over 40 in a given week.  

Bonus and Shift Pay

If your employer has paid you a bonus based on your work or has paid you a shift premium, you could be owed additional money under FLSA regulations.  Some bonuses are supposed to be included in your overtime pay.

If you have been paid a bonus based on productivity or some other premium for working a particular shift, depending on the circumstances that additional pay could be included in the calculation of what should be multiplied by “time and a half.”

Example: An employee makes $12.00 per hour “base pay.”  The employee receives a shift pay bonus of $250.00 for the week.  The actual rate of pay for overtime calculation pay purposes is $18.25 per hour and not $12.00 per hour.  If the employee worked an additional 10 hours, the gross overtime pay due the employee should be $273.75 (10 hours times $18.25 per hour regular pay times “time and a half”) and not $180.00 (10 hours times $12.00 per hour regular pay times “time and a half”).

As a cross-reference, see Chapter 5 - Calculating Overtime Pay at OvertimePayLaw.us.

Incorrect Rate of Pay

The FLSA requires that all employees subject to overtime pay law receive one and a half times their regular wage for all hours worked over 40 in a given week. Some employers do not pay the correct rate of a time and a half for overtime work calculated at a rate that could be higher than your normal stated hourly rate.  For example, if you receive certain bonus or incentive pay, that amount combined with your regular hourly pay times one and a half may be the amount of overtime you should receive.  Many employers make this mistake not even intending so.  If your employer continues to pay you your regular rate instead of time and a half of your total pay including certain additional pay, and no other exemptions or exceptions apply to you, then you may be owed overtime pay.  This can be very complicated.  Contact an attorney with your questions.