Unpaid Overtime for Tipped Employees Lawyer in McAllen, TX

To calculate overtime pay for a tipped employee, an employer must add tip credit earnings to direct cash wages. Below, we outline an example of calculating overtime pay for a tipped employee.

$3.00 direct cash wage + $4.25 tip credit = $7.25 regular rate of pay

$7.25 x 60 regular hours = $435 regular earnings

$7.25 x 0.5 x 20 overtime hours = $72.50 extra overtime pay

$435 regular earnings + $72.50 overtime pay = $507.50 regular earnings plus overtime

If you need help determining how much overtime pay you are entitled to, contact the attorneys at Leichter Law. We have decades of experience in helping employees protect their rights to fair pay.

What Are Reasons Why Employers Fail to Pay Overtime Wages?

Employers might fail to pay overtime wages due to various reasons, whether unintentional or deliberate violations of labor laws. Misclassification of employees—labeling non-exempt workers as exempt—is common, either through misunderstandings about job duties or intentional mislabeling to avoid paying overtime. 

Additionally, inaccurate record-keeping of hours worked can lead to errors in overtime calculations, as can improper computation of the regular rate of pay for employees with different earnings or compensation structures. Some of the most common reasons why employers fail to pay overtime wages include the following.

• Intentional misclassification
• Poor record-keeping practices
• Incorrect calculations of pay rates
• Lack of awareness of understanding of regulations
• Pressure to keep costs low
• Illegal employee agreements or waivers

Common Minimum Wage and Overtime Law Violations

Common violations of minimum wage and overtime laws encompass several recurring issues. Firstly, paying below the minimum wage is a prevalent violation. Employers might do this by offering a flat rate that falls beneath the full minimum wage rate set by federal or state law. This underpayment could also result from neglecting to factor in tips, which are considered part of the minimum wage for tipped employees in many jurisdictions.

Secondly, misclassification of employees occurs when workers are incorrectly labeled as exempt from overtime. Employers might designate non-exempt workers as exempt, therefore failing to pay them overtime for hours worked beyond the 40-hour workweek. Misclassification errors can arise due to misunderstandings about job duties, intentional mislabeling, or a lack of awareness of the criteria that define exempt and non-exempt employment statuses.

Lastly, employers might engage in improper record-keeping practices or fail to maintain accurate records of employees’ hours worked, breaks, or other relevant information. Inaccurate or incomplete records can lead to errors in calculating overtime or minimum wage payments, resulting in underpayment or non-payment of wages owed to employees.

These violations of minimum wage and overtime laws can result in significant financial losses for employees and legal repercussions for employers. Employees who suspect their rights have been violated may report concerns to the U.S. Department of Labor or seek legal counsel to address the issue and recover owed wages.

Off-the-Clock Work Violations

Some employers require or allow off-the-clock work without compensation, contributing to overtime non-payment. Deliberate violations of labor laws occur for cost reduction or lack of understanding, while unawareness of complex regulations or financial pressures can also lead to non-compliance. Pressure to cut labor costs might prompt employers to avoid paying overtime or to pay fewer staff members, resulting in unpaid extra hours.

Do I Need an Attorney for My Unpaid Overtime Claim?

Whether you need an attorney for your unpaid overtime claim depends on the complexity of the situation and the willingness of your employer to address the issue. In straightforward cases where your employer readily acknowledges the mistake and is willing to rectify it by paying owed wages, you may not necessarily need an attorney. However, if your employer disputes your claim, denies liability, or refuses to cooperate, seeking legal representation becomes crucial.

An experienced employment attorney can provide valuable guidance, assess the strength of your claim, navigate complex labor laws, and advocate on your behalf. They can help gather evidence, negotiate with your employer, and, if necessary, file a lawsuit to pursue your unpaid wages. 

Attorneys specializing in employment law are well-versed in the intricacies of overtime regulations and can ensure your rights are protected throughout the process, increasing the likelihood of a successful resolution to your claim. Consulting with an attorney can provide clarity on the best course of action and improve your chances of obtaining the compensation you deserve for unpaid overtime.

What Can I Recover in an Unpaid Wages Claim?

In an unpaid wages claim, the potential recoverable amounts typically include the unpaid wages owed to you by your employer. This encompasses the actual amount of wages that were not properly compensated, such as unpaid regular wages, overtime pay, minimum wage violations, and any additional compensation owed, like commissions or bonuses.

Additionally, if your employer’s violation of wage laws is found to be willful or intentional, you might be entitled to recover liquidated damages. Liquidated damages are often equal to the amount of unpaid wages owed, effectively doubling the total amount recovered.

Furthermore, interest on the unpaid wages may be recoverable, which compensates for the delay in receiving the owed wages from the time they were due.

In some cases, prevailing employees may also be awarded attorney’s fees and court costs if they win the unpaid wages claim in court. This means that if successful, your employer might be required to cover the costs associated with your legal representation.

Call Leichter Law for Unpaid Overtime Representation in McAllen

If you are a tipped employee whose employer has not paid you the overtime you earned, you can file an unpaid overtime lawsuit against them. We strongly recommend consulting with a Texas employment lawyer about your situation. At Leichter Law, we can evaluate your situation and help you fight for the compensation you deserve. To schedule a free consultation with us, please call our office at 512-495-9995 today.