Overtime Pay Compliance Risk Calculator

Estimate unpaid overtime liability risk

$
hours
weeks

Unpaid Overtime Adds Up Faster Than You'd Expect

Federal law doesn't cap how many hours an employee can work in a week — the Fair Labor Standards Act (FLSA) instead requires that non-exempt employees be paid 1.5 times their regular rate for every hour worked beyond 40 in a week. Skip that requirement, even unintentionally, and the exposure isn't limited to the unpaid wages themselves. The FLSA generally lets employees recover liquidated damages equal to the unpaid overtime amount, effectively doubling what's owed, and a Department of Labor investigation or lawsuit can add attorney's fees on top. A pattern that seems minor week to week can become a serious liability once it's added up across weeks or employees.

How It's Calculated

StepItemDetail
1Overtime hoursWeekly hours worked − 40
2Weekly owedOvertime hours × rate × 1.5
3Total back payWeekly owed × number of weeks
4Total exposureBack pay + potential liquidated damages

This calculator estimates federal FLSA exposure only. Many states have their own overtime rules that can be stricter than federal law, and actual outcomes depend on exemption status, willfulness, and other case-specific facts, so consult an employment attorney for your exact risk.

Frequently Asked Questions

Does federal law cap how many hours an employee can work per week?

No. The FLSA doesn't limit weekly hours — it just requires 1.5x pay for non-exempt employees working beyond 40 hours in a week.

What are "liquidated damages" under the FLSA?

Employees can generally recover an amount equal to the unpaid overtime, effectively doubling the employer's exposure, plus possible attorney's fees.

Does this apply to salaried employees too?

Only if they're non-exempt. Exemption depends on job duties and salary level, not job title, so check current DOL rules.

※ Actual liability depends on state law and case-specific facts. This is an estimate only, not legal advice.