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.
🔍 Key Point: Unlike California's more employee-friendly rules, the FLSA provides a federal floor. Many states exceed FLSA protections, so always check whether your state wage law is more generous (e.g., higher minimum wage, daily overtime, stricter meal breaks).
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
Common FLSA Violations
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
⚠️ State Law May Be Better: If your state has a higher minimum wage, daily overtime, or a longer statute of limitations, you can (and should) assert both federal FLSA and state-law claims. The demand letter should reference whichever law gives you the best recovery.
Step 1: Identify Your Classification
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
💡 Job Title Doesn't Matter: Being called "Assistant Manager" or "Lead Technician" is irrelevant if you don't meet the duties test. The DOL and courts look at actual day-to-day responsibilities, not labels.
Step 2: Calculate Regular Rate of Pay
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.
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
Step 3: Add Up All Unpaid Wages Over the Limitations Period
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
✅ Liquidated Damages Double Your Recovery: Under the FLSA, if you're owed $10,000 in unpaid overtime, you can typically recover $20,000 plus attorneys' fees. This makes wage claims very powerful.
Essential Elements of an FLSA Demand Letter
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
📝 Tone: Keep it professional and factual. Avoid emotional language. The goal is to signal you understand your rights and are prepared to pursue them administratively or in court.
Sample Demand Letter Language (Opening)
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.
Sample Calculation Section
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]
Closing and Deadline
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]
Who to Send Your Demand Letter To
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
⚠️ Delivery Method: Use certified mail with return receipt or a commercial courier with signature confirmation. Email is faster but doesn't provide the same litigation-proof documentation of delivery.
Supporting Documentation to Attach
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
🔐 Keep Originals: Never send original documents. Always send copies and retain the originals for your records and potential litigation.
What to Expect After Sending
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)
✅ Retaliation is Illegal: The FLSA prohibits employers from retaliating against employees who assert wage rights. Termination, demotion, reduction in hours, or harassment following a wage demand can be a separate violation.
Option 1: File a Complaint with the Department of Labor (DOL)
The DOL's Wage and Hour Division (WHD) investigates FLSA violations at no cost to you.
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
⚠️ Filing a DOL Complaint May Bar Your Private Lawsuit: Under 29 U.S.C. § 216(c), once the DOL files a lawsuit on your behalf, you cannot file your own private FLSA action. Consult an attorney before choosing this path if you want to preserve the option of a private lawsuit.
Option 2: File a Private Lawsuit in Federal Court
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)
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
💡 Collective Actions Can Multiply Damages: If your employer systematically underpaid multiple employees, an FLSA collective action can result in six- or seven-figure settlements. Employers often settle quickly to avoid widespread publicity and class liability.
When to Hire an Attorney
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
✅ Fee-Shifting Advantage: Because the FLSA allows prevailing plaintiffs to recover attorneys' fees (29 U.S.C. § 216(b)), many employment lawyers take wage cases on a contingency or hybrid basis. You often pay nothing out-of-pocket and the employer pays your attorney's fees if you win.
How I Can Help
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.
Services Offered
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
✅ Contingency and Hybrid Fee Options: Many wage cases are handled on a contingency basis (you pay only if you win) or hybrid basis (small retainer + contingency). Because the FLSA awards attorneys' fees to prevailing plaintiffs, you can often recover substantial damages without significant out-of-pocket costs.
My Approach
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
📞 Ready to Recover Your Unpaid Wages?
Contact me for a consultation. I'll review your pay records, calculate what you're owed, and map out the fastest path to recovery.
Yes—and you should. If your state law provides greater protections (e.g., daily overtime, higher minimum wage, longer statute of limitations), you can assert both federal and state claims in the same lawsuit. Courts will apply whichever law gives you the better recovery.
Generally yes. Under 29 U.S.C. § 216(b), liquidated damages (100% of unpaid wages) are presumed unless the employer proves it acted in good faith and had reasonable grounds to believe it was complying with the law. This is a high bar—most employers cannot meet it.
Arbitration agreements and class waivers are generally enforceable under the Federal Arbitration Act, but they do not prevent you from filing a DOL complaint (the DOL is not bound by your arbitration agreement). For private lawsuits, you may be forced into individual arbitration, but you can still recover all FLSA remedies (wages, liquidated damages, attorneys' fees) in that forum.
No. 29 U.S.C. § 215(a)(3) makes it illegal for an employer to discharge or discriminate against any employee for asserting FLSA rights. If you are fired, demoted, or harassed after sending a wage demand or filing a DOL complaint, you have a separate retaliation claim that can result in reinstatement, back pay, emotional distress damages, and punitive damages.
No, DOL complaints are free and you can file them yourself. However, an attorney can help you frame the complaint more effectively, ensure you're asserting all available claims (including state law), and represent you if the DOL declines to pursue your case or if you decide to file a private lawsuit instead.
DOL investigations typically take 6–12 months. Private lawsuits can settle in 3–6 months if the employer is cooperative, or take 1–2 years if the case goes to trial. Most FLSA cases settle before trial because the law heavily favors employees and employers face the risk of liquidated damages and attorney-fee awards.