“I received a big performance bonus, but they excluded it when calculating my overtime pay.”
Client M worked on the sales team of a manufacturing company. His compensation structure was a “base hourly rate + performance-based incentives (commissions).” To boost sales, Client M worked over 50 hours a week. The company paid overtime for the hours over 40, which seemed legal at first glance. However, a deep dive into his pay stubs revealed a critical trap: when calculating the 1.5x overtime rate, the company entirely excluded his incentives and only multiplied his lower base hourly rate.
Song Law Firm’s Legal Analysis: Finding the Error in the “Regular Rate” Calculation.
This is one of the most common labor law violations committed by corporations. By law, overtime must be paid at 1.5 times the employee’s “Regular Rate of Pay,” which is not just the base hourly wage.
Non-discretionary bonuses and commissions—which are tied to performance, productivity, or hours worked—must be included when calculating the Regular Rate. Song Law Firm mathematically and legally proved that by excluding these incentives, the company artificially lowered Client M’s Regular Rate, resulting in severely underpaid overtime wages.
The Result: Overtime Shortfall Recovered Using the Higher, Accurate Rate
We found our client’s rightful earnings hidden within complex accounting formulas.
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Result 1: Completely recalculated all past overtime pay based on the accurate Regular Rate, which included his incentives.
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Result 2: Recovered the entire difference between what was paid and what was legally owed, plus damages.
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Result 3: Forced the company to legally restructure its payroll calculation system.
Accepting what you are given isn’t always the right answer. The more complex the math, the more you need an expert. Song Law Firm uses the law to prove your true value.
[Contact Us]
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KakaoTalk Channel: Song Law Firm
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Phone: 201-461-0031
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Email: mail@songlawfirm.com
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Website: www.songlawfirm.com
Disclaimer: Prior results do not guarantee a similar outcome. This content is based on general legal scenarios and past successes, and does not constitute legal advice. Please consult with an attorney regarding your specific situation.
