Unpaid Wages Overtime Demand Letters Us General
The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards for employees in the private sector and in federal, state, and local governments. It applies to enterprises with at least $500,000 in annual sales or employees engaged in interstate commerce.
| Category | FLSA Rule | Notes |
|---|---|---|
| Federal Minimum Wage | $7.25/hour since 2009 | Many states and cities have higher minimums |
| Overtime Threshold | 1.5× for hours over 40 in a workweek | No daily overtime under FLSA (unlike CA) |
| White-Collar Exemptions | $684/week ($35,568/year) salary basis + duties test | Must meet both salary and duties tests |
| Statute of Limitations | 2 years (3 if willful) | Much shorter than California’s 3–4 years |
| Liquidated Damages | Up to 100% of unpaid wages | Automatic unless employer shows good faith |
- Off-the-clock work: Pre-shift prep, post-shift cleanup, meal-period interruptions, taking work home
- Misclassification as exempt: Calling someone a “manager” but paying them like hourly staff without real managerial authority
- Improper deductions: Uniform costs, tools, cash register shortages that drop wages below minimum
- Comp-time schemes: Private employers cannot offer comp time in lieu of overtime pay
- Tip credit abuses: Employers taking tip credits beyond what the law allows or failing to notify employees
Determine whether you are properly classified as exempt or non-exempt from overtime. Under the FLSA, you must meet both a salary test and a duties test to be exempt.
| Exemption Type | Salary Requirement | Primary Duties |
|---|---|---|
| Executive | $684/week ($35,568/year) | Manages enterprise or department; supervises 2+ employees; has hiring/firing authority |
| Administrative | $684/week | Performs office/non-manual work directly related to management or general business operations; exercises discretion |
| Professional | $684/week | Work requiring advanced knowledge in a field of science or learning (typically acquired via prolonged specialized instruction) |
| Computer Professional | $684/week or $27.63/hour | Systems analysis, programming, software engineering (narrow definition) |
| Outside Sales | None | Primary duty is making sales away from employer’s place of business |
Your regular rate is not just your base hourly wage—it includes non-discretionary bonuses, shift differentials, and certain commissions, divided by total hours worked.
| Earnings Component | Included in Regular Rate? |
|---|---|
| Base hourly wage | ✅ Yes |
| Non-discretionary bonuses (production, attendance) | ✅ Yes |
| Shift differentials | ✅ Yes |
| Commissions (non-discretionary) | ✅ Yes |
| Discretionary bonuses | ❌ No |
| Gifts, reimbursements, travel expenses | ❌ No |
Example: You worked 50 hours in one week at $15/hour base pay, with a $50 weekly production bonus.
| Description | Calculation | Amount |
|---|---|---|
| Straight-time earnings (50 hours × $15) | 50 × $15 | $750.00 |
| Non-discretionary bonus | — | $50.00 |
| Total compensation | $750 + $50 | $800.00 |
| Regular rate | $800 ÷ 50 hours | $16.00/hour |
| Overtime premium owed | 10 OT hours × ($16 × 0.5) | $80.00 |
| Total owed for the week | $800 + $80 | $880.00 |
| Shortfall (unpaid OT) | — | $80.00 |
Document every pay period in which you were shorted. Multiply each shortfall by the number of weeks and then apply:
- Liquidated damages: Equal to 100% of unpaid wages (automatic unless employer proves good faith)
- Attorneys’ fees and costs: The FLSA allows prevailing employees to recover their attorney fees
- Your employment details: Job title, dates of employment, department, typical hours, pay rate
- The violations: Unpaid overtime, off-the-clock work, improper exemption, etc.
- Legal basis: Cite 29 U.S.C. § 207 (FLSA overtime) and any applicable state law
- Detailed calculation: Show week-by-week or pay-period totals, regular rate, overtime premium owed
- Liquidated damages claim: State that you are entitled to an additional 100% under 29 U.S.C. § 216(b)
- Attorneys’ fees warning: Note that prevailing plaintiffs recover their legal fees
- Deadline for response: Typically 14–21 days to settle before filing with DOL or federal court
Dear [Employer/HR Contact]:
I am writing to formally demand payment of unpaid wages and overtime compensation owed to me under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., and [State] wage laws. From [start date] through [end date], I worked as a [job title] at [company]. Despite working more than 40 hours per week on a regular basis, I was improperly classified as exempt from overtime and was not paid time-and-a-half for hours exceeding 40 per week.
As detailed in the attached calculation, I am owed at least $[amount] in unpaid overtime wages for the period covered by the applicable statute of limitations. Under the FLSA, I am also entitled to liquidated damages in an equal amount (29 U.S.C. § 216(b)), bringing my total claim to $[2× amount], plus attorneys’ fees and costs if I am forced to litigate.
Include a clear table showing:
| Pay Period | Hours Worked | OT Hours | Regular Rate | OT Premium Due | Shortfall |
|---|---|---|---|---|---|
| 1/1/23 – 1/7/23 | 48 | 8 | $16.00 | $64.00 | $64.00 |
| 1/8/23 – 1/14/23 | 52 | 12 | $16.00 | $96.00 | $96.00 |
| Total Unpaid Wages: | $[X] | ||||
| Liquidated Damages (100%): | $[X] | ||||
| TOTAL CLAIM: | $[2X] | ||||
I am willing to resolve this matter amicably and avoid the cost and burden of litigation. However, if I do not receive payment in full or a reasonable settlement proposal within 21 days of the date of this letter, I will have no choice but to file a complaint with the Department of Labor’s Wage and Hour Division and/or pursue my claims in federal court, where I will seek all available remedies, including liquidated damages, prejudgment interest, attorneys’ fees, and costs.
Please direct all communications regarding this matter to me at [email/phone]. I expect a substantive response by [specific date].
Sincerely,
[Your Name]
- Direct supervisor or manager: If your company is small and informal
- Human Resources department: Larger employers typically route wage disputes through HR
- Payroll department: For purely computational errors (e.g., timesheet mistakes)
- Company owner or CFO: For smaller businesses or executive-level claims
- Registered agent (certified mail): If you want a formal paper trail or anticipate litigation
- Timesheets or time records: Copies of punch-in/punch-out logs, timecard photos, or your own contemporaneous notes
- Pay stubs: Showing what you were actually paid vs. what was owed
- Employment contract or offer letter: Showing your pay rate and job title
- Job description: To rebut any claim that you were properly exempt
- Emails or texts: Manager directing you to work off-the-clock, come in early, skip breaks, etc.
- Calculation spreadsheet: Your detailed week-by-week or pay-period analysis
| Employer Response | What It Means | Your Next Step |
|---|---|---|
| Prompt full payment | Employer acknowledges error and pays in full | Accept payment and execute mutual release |
| Settlement offer | Employer offers partial payment or installment plan | Negotiate or reject and escalate |
| Denial or no response | Employer disputes claim or ignores letter | File DOL complaint or federal lawsuit |
| Retaliation (termination, demotion) | Employer retaliates for asserting rights | You now have a separate retaliation claim under 29 U.S.C. § 215(a)(3) |
The DOL’s Wage and Hour Division (WHD) investigates FLSA violations at no cost to you.
| Aspect | Details |
|---|---|
| How to File | Online at dol.gov/agencies/whd/contact/complaints, by phone (1-866-487-9243), or in person at local WHD office |
| Cost | Free—no attorney required |
| Timeline | Investigation can take 6–12 months; DOL may recover back wages and liquidated damages on your behalf |
| Advantages | No legal fees; DOL has subpoena power and can investigate employer records; employer may comply faster to avoid federal scrutiny |
| Disadvantages | Slower process; DOL may not pursue “small” claims aggressively; you lose ability to file private lawsuit once DOL files on your behalf |
You can sue your employer directly under 29 U.S.C. § 216(b) without first filing a DOL complaint.
| Aspect | Details |
|---|---|
| Venue | Federal district court (FLSA claims have federal question jurisdiction) |
| Statute of Limitations | 2 years (3 years if violation was willful) |
| Potential Recovery | Unpaid wages + liquidated damages (100%) + attorneys’ fees and costs |
| Collective Actions | FLSA allows “opt-in” collective actions under § 216(b)—other similarly situated employees can join your case |
| Advantages | Faster resolution via settlement or trial; you control the litigation; can assert state-law claims in same lawsuit |
| Disadvantages | Requires hiring an attorney (though fee-shifting mitigates this); more adversarial; employer may fight harder |
- Your claim exceeds $10,000 in unpaid wages
- The employer disputes your classification (exempt vs. non-exempt)
- The employer has sophisticated legal counsel or HR
- You were retaliated against for asserting your wage rights
- Multiple employees were affected (potential collective action)
- You want to assert both federal FLSA and state-law claims
I represent employees in federal and state wage and hour disputes nationwide. Whether you need a demand letter drafted, DOL complaint assistance, or full federal court representation, I provide strategic, results-driven advocacy tailored to your situation.
- Demand Letter Drafting: Comprehensive letter with detailed wage calculations, legal citations, and liquidated damages demand
- DOL Complaint Preparation: Assisting with Wage and Hour Division filings and follow-up
- FLSA Litigation: Filing and prosecuting individual or collective actions in federal court
- Settlement Negotiation: Securing maximum recovery without the cost and delay of trial
- Hybrid State-Federal Claims: Asserting both FLSA and state wage laws to maximize damages
- Retaliation Defense: Protecting your job and pursuing damages if your employer retaliates
- Comprehensive audit: I review your pay stubs, timecards, employment contract, and job duties to identify all wage violations (not just overtime—also meal breaks, expense reimbursements, etc.)
- Precise damage calculation: I calculate your regular rate correctly, account for non-discretionary bonuses, and document every unpaid hour
- Strategic demand drafting: I draft a demand letter that signals serious intent, references both FLSA and state law, and includes a liquidated-damages warning
- Aggressive follow-up: If the employer doesn’t respond or disputes the claim, I move quickly to DOL complaint or federal lawsuit
- Maximized recovery: I pursue not just unpaid wages, but liquidated damages, penalties, interest, and attorneys’ fees—often doubling or tripling your net recovery
Contact me for a consultation. I’ll review your pay records, calculate what you’re owed, and map out the fastest path to recovery.
Email: owner@terms.law