Direct answer
State wage claims cover the same ground with state law (see the wage claim guide ), and federal DOL filings run in parallel. The record set: paystubs, timesheets, and job descriptions (see the records guide ). The final-pay clock is in the state deadlines guide , and severance label math in the severance tax guide .
Updated November 8, 2026 · Reviewed against US DOL Wage & Hour Division
FLSA overtime is the wage law with teeth: if the employer fails the test, damages double. The claim math is the leverage, and the misclassification patterns are the entry.
The FLSA Test
- Overtime: time-and-a-half over 40 hours per week for non-exempt employees. The salary threshold defines the exempt line (dol.gov publishes current rules; thresholds move with federal updates).
- Exempt traps: "manager" titles without management duties, salaried staff under the threshold, and commission workers without overtime plans. Misclassification is the common case.
- Liquidated damages: FLSA claims double the unpaid wages as the default remedy, plus attorney fees in many wins.
The Claim Path
State wage claims cover the same ground with state law (see the wage claim guide), and federal DOL filings run in parallel. The record set: paystubs, timesheets, and job descriptions (see the records guide). The final-pay clock is in the state deadlines guide, and severance label math in the severance tax guide.
Put the rule into action
Write the letter with the free Final Paycheck Demand Letter generator. The state pages carry the local payout and notice windows, and the application tracker keeps the follow-up date in writing.
Put the rule into action
Build the hours record before you file anything
Overtime claims are records cases. The law pays time and a half over 40 hours in a workweek for non-exempt employees, and the doubling remedy makes the record worth money. Collect the hours first, in a form you can show:
- A week-by-week log of clock-in and clock-out times, built from your own contemporaneous notes, not reconstructed later.
- Off-clock work: emails after close, weekend messages, calls, training, and travel between job sites, each with dates.
- Pay statements: showing salary or hourly pay for the weeks claimed.
- Duties evidence: what you actually did, approvals you handled, staffing you directed, and systems you maintained.
- The policy: timekeeping rules, approval requirements, and any written off-clock instruction.
The exemption depends on duties plus a salary threshold, and thresholds change with federal rulemaking; confirm the current figure with the Department of Labor rather than quoting a remembered number. Read the FLSA exempt entry and price the unpaid weeks in the final pay calculator.
Two tracks, and the good-faith defense
The same facts can be filed with the state labor agency, with the federal wage-and-hour agency, or in court, and the tracks differ in remedy and speed:
- State claim: deadlines, interest, and multipliers vary by state; several add treble damages or fees. Confirm the filing window with the state agency named on the New York wage page or the state map.
- Federal route: unpaid overtime with liquidated damages as the default, doubling the wage figure unless the employer shows reasonable grounds and good faith.
- Court: limitations periods vary, and collective actions let similarly situated employees join; an arbitration clause may route the case to a private forum and limit class claims. See the arbitration entry.
Retaliation for a wage complaint is prohibited, so log the dates: complaint filed, schedule changed, duties removed. Send a written demand first with the final paycheck demand letter; it establishes the notice date and often produces the pay records you still need.
Settlement math, allocation, and the tax line
Unpaid overtime is wages. That has consequences in settlement paperwork, and the allocation is negotiable:
- Back pay is wage income reported on a W-2, usually with payroll taxes withheld, so a gross settlement number is not the net.
- Liquidated or statutory damages may be reported differently from wages; ask for the allocation in writing before signing. The back pay entry explains why mixing lines changes the tax result.
- Claims you cannot waive are usually carved out of releases: unemployment filing, workers’ compensation, and protected disclosures.
- Attorney fees and costs are part of the arithmetic; ask whether the settlement includes them and how they are reported.
Run the numbers against what you would earn while the case runs, then decide. Two documents decide most outcomes: the week-by-week hours log and the duties evidence. If either is thin, gather more records before filing, and keep every version of the record with its date.
| Claim element | What proves it | Where it is argued |
|---|
| Hours over 40 | Contemporaneous log plus pay statements | State agency, federal route, or court |
|---|
| Exemption status | Actual duties, approvals, staffing, salary level | Employer classification plus the duties test |
|---|
| Doubling remedy | Absence of good-faith grounds | Liquidated damages and the reasonable-grounds defense |
|---|
| Settlement tax line | Allocation written before signing | W-2 wages versus damages reporting |
|---|
Frequently Asked Questions
- What are liquidated damages in an overtime claim?
- They roughly double the unpaid wages as the default federal remedy unless the employer shows reasonable grounds and good-faith conduct. That is why the records you keep decide the value of the claim, not the argument.
- Am I exempt just because I am salaried?
- No. Exemption requires both a qualifying salary level and a duties test: executive, administrative, professional, outside sales, or IT. A title does not decide it; what you actually did does.
- Can I file a state wage claim and a federal claim together?
- Often, yes, since the tracks have different deadlines and remedies. Confirm the state filing window with the state agency and keep the same factual record for both; inconsistent versions weaken both claims.
- Is overtime settlement money taxable as wages?
- Unpaid overtime is wages, so it is reported as wage income with payroll taxes. Damages and interest may be treated differently, so ask for the allocation in writing before you sign, and keep it with your tax records.
Sources (official record — verify before filing)
US DOL Wage & Hour Division