This is not a cost calculator; it is an exposure calculator. If overtime hours are being worked but not paid, this estimates what that could become if it turns into a wage claim, an audit, or a lawsuit.
This tool models exposure scenarios for planning purposes only. It is not legal advice, does not determine liability, and does not establish that liquidated damages or a three-year period would apply. If exposure appears material, have a wage-hour attorney or qualified consultant review the facts.
If the overtime hours received no pay, the model uses 1.5 times the entered regular rate. If straight time was paid and only the overtime premium was omitted, it uses 0.5 times the entered rate. The FLSA generally has a two-year recovery period; a willful-violation finding can extend it to three years. Regular-rate and fluctuating-workweek reconstructions can require different calculations.
FLSA claims can carry liquidated damages equal to the back wages, effectively doubling the number, unless the employer shows good faith and reasonable grounds. This tool presents that as a scenario, not a certainty, because whether it applies is fact-specific.
Overtime is generally calculated from the regular rate, which can include nondiscretionary bonuses, commissions, and other compensation required by the FLSA—not just base hourly pay. If the issue is an omitted bonus or commission component, use a qualified payroll reconstruction rather than treating the full base rate as the omitted amount.
Potential exposure can exist before anyone complains, and a wage claim may be filed after separation. If a pay practice is wrong, estimated back wages can continue to accumulate each workweek within the applicable recovery period.
Common patterns include pre-shift setup, post-shift closing, work during automatically deducted meal periods, after-hours phone use, omitted pay components in the regular rate, and misclassification. The facts and records determine whether time is compensable.
Broadly, willfulness involves knowing or reckless disregard of whether conduct violated the FLSA. Prior notice of a pay problem and the response to that notice may be relevant, but a court decides willfulness from the full facts.
Stop the accrual first: fix the timekeeping or classification practice going forward. Then get qualified advice on correcting the past, because how a correction is handled affects both the exposure and employee trust.
Book a no-cost 30-minute consult. Bring your result, and leave with a straight read on the risk and a practical next step.