Most overtime underpayment isn’t dramatic fraud — it’s small, repeatable mistakes in how the regular rate and the workweek are handled. Here are the eight that come up most, what each costs, and how to check yourself.
1. Averaging two weeks together
Overtime is per workweek. 46 hours one week and 34 the next owes 6 overtime hours, even though the biweekly average is 40. At $20/hour that’s $60 of premium pay per period — about $780/year if it recurs. The biweekly overtime calculator shows the per-week split.
2. Using the base rate instead of the regular rate
Overtime must be 1.5× the regular rate, which folds in shift differentials and non-discretionary bonuses. Paying 1.5× the base wage alone underpays anyone who earns a differential or production bonus.
3. Ignoring bonuses
A non-discretionary bonus must be added to straight-time pay before the regular rate is computed, raising the overtime owed for that week. Forgetting it is a quiet, recurring shortfall.
4. Mishandling multiple pay rates
Two rates in one week require a weighted-average regular rate (total straight-time ÷ total hours), not the lowest rate. The blended overtime calculator handles this correctly.
5. Assuming salary means no overtime
Salary alone doesn’t create an exemption. Non-exempt salaried employees are owed overtime — see salary and overtime. Misclassification is one of the most common wage claims.
6. Counting PTO and holidays toward 40
Only hours actually worked trigger overtime. A week with 8 holiday hours and 36 worked hours has no overtime. Counting paid-but-unworked time inflates the total incorrectly (and the reverse error denies earned overtime when real worked hours exceed 40).
7. Skipping daily overtime in daily-rule states
In California (and a few others), a long single day earns overtime even in a short week. A 12-hour day is 4 overtime hours regardless of the weekly total. A federal-only calculation misses it — pick your state in the overtime calculator.
8. Keeping no personal record
When pay and memory disagree, the better record wins. The FLSA puts recordkeeping on employers, but your own copy is leverage. Log hours daily with the time card calculator and export weekly.
A 60-second audit
- Total your worked hours per workweek (not per pay period).
- Confirm your regular rate includes differentials and bonuses.
- Apply 1.5× over 40 (and your state’s daily rule).
- Compare with your stub — a gap beyond rounding is worth raising in writing.