Best Employment Lawyers : Overtime Pay Calculation

The Fair Labor Standards Act establishes the federal minimum for overtime compensation, but New York provides additional protections that employees can leverage. New York Labor Law requires overtime pay for hours exceeding 40 per week at rates no less than one and one-half times the employee's regular rate. The regular rate includes not only hourly wages but also bonuses, commissions, and other forms of compensation that are part of the employee's total earnings. Employers who fail to include all compensation in the overtime calculation are violating both federal and state law.

Many employers make systematic errors in overtime pay calculation that harm workers. These errors include using only base hourly rates while excluding shift differentials or bonuses, averaging hours across multiple weeks instead of calculating on a weekly basis, or misclassifying salaried employees as exempt from overtime when their duties do not qualify for exemption. The best employment lawyers in New York investigate payroll records and employment agreements to identify these violations and quantify the damages owed to employees.

The New York Supreme Court has jurisdiction over wage and hour claims under New York Labor Law. Cases in state court follow the Civil Practice Law and Rules, which provide specific procedures for discovery, motion practice, and trial. Plaintiffs in New York Supreme Court can pursue claims under Labor Law Section 650 for unpaid overtime and can recover liquidated damages equal to the unpaid wages, plus attorney fees and costs. The best employment lawyers in New York leverage state court procedures to build strong cases through depositions, document discovery, and expert testimony on wage calculations.

Overtime pay claims can also be brought in federal court under the Fair Labor Standards Act, which provides for recovery of unpaid wages, an equal amount as liquidated damages, and attorney fees. The federal courts in the Southern and Eastern Districts of New York handle employment cases and apply both federal law and New York law principles. Many employment cases proceed as collective actions, allowing similarly situated employees to join the lawsuit and recover unpaid overtime together. This mechanism significantly increases the value of claims and provides leverage for settlement negotiations.

Calculating the regular rate for overtime purposes requires careful analysis of the employee's compensation structure. The regular rate includes hourly wages, but also bonuses, commissions, shift differentials, and other payments that are part of the employee's compensation. If an employee receives a weekly salary plus commission, the regular rate must account for both components when calculating overtime pay. Some employers attempt to use a lower base rate by excluding certain compensation, which violates overtime pay calculation rules under both federal and state law. The best employment lawyers in New York work with forensic accountants and wage and hour experts to ensure all compensation is properly included in damage calculations.

Under the Fair Labor Standards Act and New York Labor Law, employees who prevail in overtime pay disputes can recover liquidated damages equal to the unpaid wages, plus prejudgment interest and attorney fees. These additional damages serve as a deterrent to employer violations and significantly increase the value of claims. For example, if an employee is owed $50,000 in unpaid overtime, liquidated damages could total another $50,000, and attorney fees could add another $30,000 to $50,000 or more depending on the complexity and duration of the case. Understanding how to maximize these damages is a key skill of the best employment lawyers in New York.

The best employment lawyers in New York recognize that wage and hour violations rarely occur in isolation. An employee who is denied overtime pay may also have been subject to improper wage deductions, misclassification, or underpayment of minimum wage. By investigating the full scope of compensation practices, attorneys can identify all violations and pursue comprehensive relief. This integrated approach often reveals patterns of systematic underpayment that significantly increase the value of the case and demonstrate the need for punitive measures.

The best employment lawyers in New York prioritize early and thorough evidence collection in overtime pay cases. This includes obtaining all payroll records, timekeeping systems, employment contracts, and communications regarding compensation. Electronic timekeeping systems, email correspondence, and text messages can all provide evidence of hours worked. Witness testimony from coworkers who experienced similar violations strengthens the case and supports collective action claims. Employers who have not maintained accurate records may be subject to adverse inferences, meaning the court may assume that the employee's testimony about hours worked is accurate.