Overview

Overview
Employees who are paid a flat rate per day are entitled to overtime premiums when they work more than 40 hours in a week.

Berger Montague is investigating potential class action lawsuits on behalf of workers who are paid a day rate and do not receive overtime compensation.

Table of Contents
• What is Day Rate Compensation?
• Understanding Your Rights to Overtime Compensation as a Day Rate Employee
• Your Right to Overtime Pay
• Calculating Overtime for Day Rate Workers
• Legal Precedents and Your Rights
• Does my day rate include overtime?
• What to Do If You Are Not Receiving Proper Overtime Pay
• Do I need to act now?
• Do I have to pay any fees to the attorneys?
• About Berger Montague

What is Day Rate Compensation?
Day rate compensation occurs when employees are paid a set amount for each day worked, regardless of the number of hours worked in that day. This pay structure is common in industries such as oil and gas, healthcare, construction, and delivery services.
For example, delivery drivers may be told that they will be paid $150 dollars per day to deliver all packages on their routes regardless of how long it takes them to do so.
Understanding Your Rights to Overtime Compensation as a Day Rate Employee
Your Right to Overtime Pay
Even if you are paid a day rate, you are still entitled to overtime pay for any hours worked over 40 in a workweek. The Fair Labor Standards Act (“FLSA”) requires that day rate workers receive overtime pay, calculated at a “half-time” rate, for all overtime hours.

Calculating Overtime for Day Rate Workers
To determine your regular rate of pay, total your weekly earnings and divide by the total hours worked. You are then entitled to an additional half-time pay for each hour worked over 40. For example:
• Day Rate: $200 per day
• Work Days: 5 days
• Total Weekly Pay: $1,000
• Total Hours Worked: 60 hours
• Regular Rate: $1,000 ÷ 60 = $16.67 per hour
• Overtime Pay: $16.67 × 0.5 × 20 overtime hours = $167.00
• Total Weekly Pay: $1,167.00

Legal Precedents and Your Rights
In our case of Hickman v. TL Transportation, LLC, 318 F. Supp. 3d 718, 719 (E.D. Pa. 2018), the court ruled in favor of employees and held that no portion of the employees’ $160 day rate payments could be counted as overtime premiums. The court ruled that the employees were entitled to significant back wages and damages, highlighting the importance of proper overtime compensation.

Does my day rate include overtime?
No. Companies may attempt to artificially designate part of an employee’s day rate as a “daily overtime payment.” This is another common illegal scheme that employers use make it appear that employees receive overtime while in fact, they do not.

What to Do If You Are Not Receiving Proper Overtime Pay

  1. Keep Accurate Records: Document all hours worked and keep your paystubs.
  2. Consult an Attorney: Contact a lawyer who specializes in wage and hour cases to review your situation.

Contact Us for a Free Consultation. If you are paid on a day rate and believe you are not receiving the overtime pay you deserve, contact our experienced overtime attorneys for a free and confidential consultation. We will review your case and help you understand your rights under federal and state law.

Do I need to act now?

Yes, if you believe that you have not received the wages or overtime pay you deserve you should act as quickly as possible. Through statutes of limitations, the law limits the time you have to bring suit. If you do not take legal action within the time provided by the applicable statute of limitations, some or all of your claims may be barred and recovery denied.
Under the federal Fair Labor Standards Act, you must file a claim for unpaid overtime wages within two years (three years if the violation was willful) from the date of the unpaid wages. For overtime claims, the longer you wait the less you may be able to recover in a lawsuit.

Do I have to pay to consult with an attorney?

We are happy to talk with you about your potential claims free of charge. If we decide to represent you in a lawsuit, we will enter into a written contingent fee agreement with you. A contingent fee agreement means we only get paid if we win, and that we will receive our fees from the amount paid by the Defendant in the case.

Please contact us to discuss the details of your case. You may:

Use the contact form on this page
Email info@bm.net
Call 800-424-6690

Berger Montague is one of the nation’s preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. The firm is active in the fields of antitrust, commercial litigation, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For more than 50 years, Berger Montague has played lead roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, Washington, D.C., and Wilmington, DE.

Contact UsFree Case Evaluation

"*" indicates required fields

By clicking SUBMIT you agree to our Terms of Use and Privacy Policy and you are providing express consent to receive communications from Berger Montague via calls, emails, and/or text messages.

On the Cutting Edge of the Profession

Legal Intelligencer