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As an employee, few things are more frustrating than realizing you haven’t been paid correctly for your hard work. Whether it is missing overtime pay, withheld bonuses, or other unpaid benefits, you are entitled to recover the wages owed to you, known as back pay. However, calculating back pay can be challenging, especially if you’re unfamiliar with the process.
What is “Back Pay”?
Back pay is the compensation you should receive for wages lost due to your employer’s noncompliant payment practices. In most cases, calculating back pay involves taking the wages you were entitled to (e.g., overtime pay) and subtracting the wages you received (e.g., standard pay). The difference represents your back pay. However, exceptions may arise, so it’s often helpful to consult with an attorney, like the ones at Josephson Dunlap.
Where to Start Calculating?
Calculating back pay starts with figuring out why you weren’t paid correctly. For example, if you didn’t get paid for overtime work, add up all the extra hours you worked during that time. Then, find out what your overtime pay rate should have been, including any extra penalties or damages allowed by law. This will help you see how much money you could be owed.
Calculating the Overtime Pay
To calculate the overtime pay you are owed:
- Identify Overtime Hours: Determine how many overtime hours you worked during the back pay period.
- Calculate Overtime Rate: Typically, overtime wages are based on your hourly rate plus an additional half of your hourly rate. For instance, if you earn $10 per hour and work three additional hours at the overtime rate, your overtime rate would be $15 per hour for those 3 overtime hours!
- Compute Back Pay: Multiply the overtime rate by the number of overtime hours worked to find the back pay amount.
Other Compensation to Consider
In addition to overtime pay, ensure you include all unpaid compensation such as bonuses, commissions, and vacation payments. Gather all your pay stubs, employment contracts, and timekeeping records as proof of your employer’s failure to fully compensate you.
Calculate an Estimate of Your Back Pay Easily
Overtime Calculator – Josephson Dunlap LLP – Labor Rights (mybackwages.com)
Hundreds of Millions Recovered in Unpaid Wages & Overtime
At Josephson Dunlap, we have years of experience helping clients recover lost wages and other damages. If you’ve been underpaid and need help calculating your back pay, contact us today at (888) 742-7242 for a free consultation. We’ll help you understand your rights and fight for the compensation you deserve.