Overtime violations are a common issue in the service industry, where long hours and demanding schedules are the norm. Unfortunately, many workers are not compensated fairly for their overtime hours. If you suspect you are owed unpaid overtime, it’s important to understand your rights, calculate your damages, and take the appropriate steps to recover the compensation you deserve.
Understanding Overtime Laws in the Service Industry
Federal and California laws provide protections to ensure service industry employees receive proper overtime pay. In California, non-exempt employees must be paid:
- 1.5 times the regular rate for hours worked beyond 8 in a day or 40 in a week.
- 2 times the regular rate for hours worked beyond 12 in a day or for more than 8 hours on the seventh consecutive workday.
Common Overtime Violations
Service industry employers may violate overtime laws by:
- Misclassifying employees as exempt to avoid paying overtime.
- Failing to include bonuses, commissions, or other compensation in overtime calculations.
- Requiring off-the-clock work before or after shifts.
- Improperly averaging hours over two weeks to avoid paying overtime.
If any of these situations sound familiar, you may have grounds to recover unpaid overtime wages.
Calculating Damages for Unpaid Overtime
Before filing a claim, it’s important to calculate the damages you are owed. This includes determining the number of unpaid overtime hours and the correct overtime rate.
Steps to Calculate Unpaid Overtime
- Track Hours Worked: Gather time records, pay stubs, or other documentation showing the hours you worked and your pay rate.
- Calculate Overtime Hours: Identify any hours worked beyond 8 in a day or 40 in a week (or beyond 12 hours in a day for double time).
- Determine the Overtime Rate: Multiply your regular hourly wage by 1.5 for overtime or by 2 for double time.
- Add Unpaid Amounts: Multiply the overtime rate by the number of overtime hours worked.
Example Calculation
If your regular hourly wage is $20, and you worked 45 hours in a week (with no double-time hours):
- Regular pay: $20 x 40 hours = $800
- Overtime pay: $30 (1.5 x $20) x 5 hours = $150
- Total pay: $950
If your employer only paid you $800, you are owed $150 in unpaid overtime.
How to Initiate a Claim for Unpaid Overtime
Filing a claim for unpaid overtime requires careful preparation and attention to detail.
Steps to Take
- Gather Evidence: Compile all relevant documents, including time records, pay stubs, schedules, and employment contracts. This evidence will support your claim.
- Consult an Employment Attorney: Contact PLBH for legal advice and representation. An experienced attorney can help you evaluate your case and guide you through the process.
- File a Claim: You may file a claim with the California Labor Commissioner or pursue a lawsuit with the assistance of your attorney.
- Attend Hearings or Mediation: Be prepared to present your evidence and testify about your work hours and pay.
Deadlines for Filing Claims
California workers must file claims within three years of the date of the unpaid overtime. Acting promptly is crucial to ensure you recover the full amount you are owed.
Protecting Your Rights as a Service Industry Worker
Unpaid overtime can significantly affect your financial well-being. By understanding your rights and taking action, you can recover what you’re owed and help hold employers accountable for wage violations.
At PLBH, we specialize in helping service industry employees recover unpaid wages, including overtime. Contact us at (800) 435-7542 to schedule a consultation and start your claim today.