Everything You Should Know About Overtime Lawsuit Settlements

This article covers everything you should know about overtime lawsuit settlements including who counts as an employee, exemptions, and common damages in unpaid overtime settlements.

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Everything You Should Know About Overtime Lawsuit Settlements

Are you being inadequately compensated for overtime work? If so, you may need to learn how to file a lawsuit for unpaid overtime wages.

Truthfully, it can be a confusing and complicated process.. So to help you out, here’s everything you should know about overtime lawsuit settlements to help get you started.

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What Is Overtime?

If you are a full-time worker, you usually need to work more than 40 hours a week to get overtime. Typically, during overtime, you earn one and one-half times your regular hourly wage.

Once you’ve worked overtime hours, you are legally entitled to receive overtime wages. If your employer denies you your overtime pay, you may consider filing an overtime lawsuit.

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Who Counts as an Employee and Who Doesn’t?

According to federal labor regulations, employers must pay overtime for employees who work more than 40 hours per week.

However, not everyone who works for a company is an employee. Many workers are classified as independent contractors. And sometimes, they may be misclassified as employees.

Independent contractors aren’t entitled to overtime wages, and their employers cannot be sued for unpaid overtime. That’s why knowing the difference between employees and independent contractors is essential.

So double-check with your employer if you need clarification on whether you are an employee or an independent contractor. That way, you’ll better understand whether you’re entitled to overtime wages.

What Are Common Damages in Unpaid Overtime Settlements?

The following are recoverable damages in wage claims.

Unpaid Wages

When an employer fails to pay overtime wages, the employee can sue for unpaid wages. The court may order the employer to pay back all unpaid wages, including overtime pay.

Interest on Unpaid Wages

In addition to the unpaid wages, the court may also order the employer to pay interest on those unpaid wages. The amount of interest depends on state laws.


The court could also order the employer to pay penalties. These penalties can be up to double the wages earned, depending on state laws.

Legal Fees

The court may also order your employer to pay your legal fees and costs if you win your case.

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What Are Other Forms of Wage Theft?

Wage theft is an umbrella term for any illegal practice that denies or under pays workers for their labor. So there are several wage theft types outside the most common ones listed above, including:

  • Paying less than the minimum wage;
  • Not paying for all hours worked;
  • Making illegal deductions from workers’ paychecks;
  • Not paying proper overtime wages (i.e., less than owed);
  • Not granting workers the rest breaks they’re entitled to.

Identifying and looking for wage theft can be complicated, as employers may try to hide what they are doing. There are two significant ways that employees can look for signs of wage theft or other illegal practices related to their compensation.

Paychecks: Employees should pay close attention to their weekly or monthly wages. They should ensure that the amount on their paychecks accurately reflects all their work hours (and overtime hours).

Time Cards: Employees should check their time cards to ensure payment for all their hours. They should also look for discrepancies between the times listed on the time card and their actual hours worked.

If you find discrepancies or feel you’ve been paid unfairly, consider speaking to a lawyer about filing an unpaid overtime lawsuit.

I Want to Claim Unpaid Overtime Wages, What Are My Next Steps?

If you think you’re a victim of unpaid overtime, the first step is to talk to a lawyer. An experienced employment attorney can clarify your legal rights and responsibilities. Your attorney can also help you determine if filing an unpaid overtime lawsuit is right for you.

For simple cases, you may be able to handle it yourself. To do so, you must determine the amount of wages due, calculate back pay and interest, and then contact the employer to resolve the matter.

If you cannot agree with your employer, you can file a lawsuit in court to recover your unpaid overtime wages and get a fair settlement. You’ll need to draft a complaint and file it with the court to get started.

However, suppose you have a complex case, such as one involving multiple employers or various types of claims. In that case, you will need the help of an experienced attorney. Navigating the law and protecting your rights can be difficult in these situations, so it’s best to have an expert on your side.

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Lawsuit Loans for Overtime Lawsuits

If you’re considering filing an overtime lawsuit, you may be wondering how to finance your legal costs. After all, lawsuits can be expensive, and they often take months or even years to resolve.

One option to consider is a lawsuit loan. A lawsuit loan is a type of funding that allows you to borrow money against your pending lawsuit. You can use the money to pay for your legal fees and other expenses related to your case.

Our lawsuit loans come at rates as low as 2.5% simple interest per month. If you lose your case, you don’t have to repay the loan. So it’s a risk-free way to finance your overtime lawsuit.

If you’re interested in learning more about lawsuit loans for overtime lawsuits, contact LawsuitLoans.io today. We offer competitive rates and can help you get the funding you need to pursue your case.

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