• Skip to primary navigation
  • Skip to main content

HRMorning

  • FREE RESOURCES
  • PREMIUM CONTENT
  • HR DEEP DIVES
  • PODCASTS
    • VOICES OF HR
    • WOMEN’S LEADERSHIP TODAY
  • LOGIN
  • GET STARTED
  • Employment Law
  • Benefits
  • Recruiting
  • HR Technology
  • Payroll
  • Management
  • Women’s Leadership
  • More
    • Talent Management
    • Performance Management
    • Leadership & Strategy
    • Compensation
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans
  • Employment Law

Miscalculated Overtime: What a $56K Mistake Looks Like

Carol Warner
By: Carol Warner
Read it on Beacon
  • Share on

About the Author

For nearly two decades, Carol Warner has analyzed the legal and financial realities behind workplace decisions, covering employment law, benefits, payroll and HR technology. She translates complex legal updates, regulatory shifts and vendor claims into plain language that HR teams can act on. Her focus is simple: What does this mean for employers, and what should they do next? Connect with her on LinkedIn.

Show Less
Last Updated: November 25, 2024
2 minute engagement
Do you know this rule about OT?
You read HRMorning's newsletter. Beacon's Daily Brief is the version tuned to you: it skips what you've already read and leads with what you've asked Beacon about. Get your Daily Brief →

Improperly calculating employees’ overtime pay can be an expensive mistake, as a Cincinnati-based logistics provider recently learned the hard way.

Here’s what happened – and what the DOL had to say about it.

Employer Shortchanged Workers on OT, DOL Finds

An investigation by the DOL’s Wage and Hour Division determined Liberty Hill Equity Partners LLC shortchanged 234 non-exempt employees by miscalculating their overtime. Specifically, the company didn’t include the employees’ non-discretionary bonuses in their regular pay rate when calculating the overtime they were owed. 

In the DOL’s view, the alleged conduct violated the Fair Labor Standards Act (FLSA), which requires employers to include non-discretionary bonuses in non-exempt employees’ regular pay rates when calculating their overtime.

The affected employees worked at two locations: in Fort Wayne, Indiana, and Wayne, Michigan.

Ultimately, the DOL recovered $28,422 in back wages and an equal amount in liquidated damages for the 234 affected employees, which brought the company’s total payout to $56,884.

DOL: Overtime Errors Are Very Common

The DOL has since expanded the investigation and now plans to examine payroll records for all non-exempt workers at 10 locations in Michigan, Ohio and Tennessee.

“Inaccurate overtime calculations are among the most common violations identified in our investigations. Employers can avoid the costly consequences of their errors by contacting the Wage and Hour Division for assistance or by reviewing our overtime compliance assistance materials online,” Indianapolis Wage and Hour District Director Aaron Loomis said in a statement. 

Compliance Help

As this case shows, employee bonuses can bring up some tricky compliance challenges.

For example, to comply with the FLSA, employers need to know the difference between discretionary and non-discretionary bonuses – because non-discretionary bonuses have to be factored into OT calculations.

If you want specific examples of non-discretionary bonuses that must be factored into employees’ regular pay rates for OT purposes, you’re in luck.

Employment attorney Bennet Epstein has previously shared examples with HRMorning. Non-discretionary bonuses are “based on meeting production, sales or other performance standards,” says Epstein.

For more help (and examples) calculating bonuses and overtime, check out Bonuses, OT and Taxes: Keys to Getting It Right.

Read it on Beacon
Open this article in Beacon, from HRMorning, and ask how it applies to your company. Every answer names its source.
Read it on Beacon
Get HRMorning's newsletter tuned to you every morning: your Daily Brief on Beacon →
Filed under
  • Employment Law
  • Share on

Get the HRMorning Newsletter

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

Get it free with a Beacon account. Beacon keeps your company's HR context at hand, and every answer names its source.
Create my free account

Free Training & Resources

White Papers

Every Accommodation Request Is a Compliance Test. Automate the Process That Passes It.

White Papers

Budgeting for a Successful Rewards and Recognition Program

Provided by Inspirus

White Papers

Completion Rates Aren’t a Training Strategy

Provided by Navex

White Papers

One Botched Harassment Investigation Away From a Lawsuit

Provided by Navex

SPONSORED CONTENT

Performance Management

Talent Management

sponsored content
Employee Recognition Program: What the First 6 Months Reveal About Whether It Will Last

Courtesy of INSPIRUS

Compensation

Recruiting

sponsored content
Salary Benchmarking: 6 Choices That Decide Whether Your Pay Data Holds Up

Courtesy of MARSH

Employment Law

Policy & Procedures

sponsored content
Policy Rollout: 4 Checkpoints That Show Employees Got the Message

Courtesy of NAVEX

Further Reading

  • Employment Law
Highly Compensated Employee Files FLSA Lawsuit: Here’s Why

Having trouble deciding whether an employee is exempt under the Fair Labor Standards Act (FLSA)? A ruling from a federal appeals court in a...

  • Employment Law
Why You’ll See More Discrimination Claims and How to Handle Them | 2-Minute Video

You can expect an uptick in discrimination claims. Employees know more about discrimination and are more prepared than ever to file. And...

  • Employment Law
  • Payroll
CA Update: Minimum Wage Increases for Hotel Employees

Hospitality employers in California take note: Several cities in The Golden State have minimum wage increases for hotel employees soon taki...

  • Employment Law
‘Talk to Us First’ Safety Policy Was Illegal, Federal Agency Finds

An employer broke the law by implementing a safety policy that required employees to come to it first before going to regulatory authoritie...

  • Employment Law
Free the beard: EEOC targets religious discrimination based on facial hair

Word to the wise: The Equal Opportunity Employment Commission (EEOC) is cracking down on religious discrimination based on facial hair, as ...

  • Employment Law
May an Employer Discipline an Employee for Off-Duty Social Media Activity?

In today’s digital age, social media has blurred the lines between personal and professional lives. A post made outside of work hours...

Get the latest from HRMorning in your inbox PLUS Beacon, free. Check it before you say it.

GET STARTED FREE
HR Morning Logo
  • Facebook
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • Leadership & Strategy
  • Compensation
  • Policy & Procedures
  • Wellness
  • Staff Departure
  • HR Career & Self-Care
  • Health Care
  • Retirement Plans
  • DEI

HRMorning provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day's headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Privacy Policy | Terms of Service
Copyright© 2026 HRMorning
HRMorning Logo

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.