What Is Back Pay and When Are You Owed It?

Understanding Back Pay

Back pay refers to wages that an employer owes you but hasn't paid. Unlike future pay or bonuses, back pay is compensation for work you've already performed. It represents the difference between what you were paid and what you should have been paid according to employment law, your contract, or wage and hour regulations.

Common Scenarios Where Back Pay Applies

• Unpaid Regular Hours: You worked but weren't paid for your regular hours
• Unpaid Overtime: You worked overtime but weren't paid the correct overtime rate (typically 1.5x your regular rate)
• Minimum Wage Violations: You were paid below the legal minimum wage
• Late Final Pay: Your employer failed to pay your final wages on time when you left the job
• Misclassification: You were misclassified as exempt from overtime when you should have received overtime pay
• Off-the-Clock Work: You were required to work before or after your scheduled shift without pay
• Meal/Rest Break Violations: You weren't paid for missed meal or rest breaks (in states that require payment)

When Are You Owed Back Pay?

You're legally owed back pay in several situations:

1. Unpaid Regular Wages

If you worked but weren't paid for your regular hours, you're owed those wages. This is the most straightforward type of back pay. For example, if you worked 40 hours but only received pay for 35 hours, you're owed 5 hours of back pay at your regular hourly rate.

2. Unpaid or Underpaid Overtime

Under federal law (FLSA) and most state laws, non-exempt employees must receive 1.5x their regular hourly rate for hours worked over 40 in a workweek. If you worked overtime but weren't paid correctly, you're owed the difference. Use our overtime back pay calculator to estimate what you're owed.

3. Minimum Wage Violations

If you were paid below the federal or state minimum wage, you're owed the difference for every hour worked. For example, if the minimum wage is $15/hour but you were paid $12/hour, you're owed $3/hour in back pay.

4. Late Final Pay

Most states require employers to pay final wages within a specific timeframe (often immediately or within a few days). If your employer fails to do so, you may be entitled to waiting time penalties in addition to the unpaid wages. States like California require up to 30 days of wages as a penalty for willful violations.

5. Misclassification

If you were incorrectly classified as exempt from overtime (e.g., as a salaried employee), but you should have been non-exempt, you're owed overtime pay for all hours worked over 40 per week. This can result in significant back pay, especially if you regularly worked long hours.

Additional Compensation: Interest, Penalties, and Liquidated Damages

In addition to the unpaid wages themselves, you may be entitled to:

Interest

Many jurisdictions allow interest on unpaid wages. Some states have statutory interest rates:

• California: 10% per annum
• Massachusetts: 12% per annum
• Other states may award interest at court discretion

Waiting Time Penalties

Some states require employers to pay penalties for late final pay. For example, California requires up to 30 days of wages as a penalty if the employer willfully fails to pay final wages on time.

Liquidated Damages

Liquidated damages are additional compensation equal to the unpaid wages, effectively doubling what you're owed. Federal FLSA allows liquidated damages for willful violations. Many states also allow liquidated damages.

Double or Triple Damages

Some states allow double or even triple damages for willful wage violations. For example,Massachusetts allows triple damages for willful violations.

How to Calculate Back Pay

Back pay is calculated using this basic formula:

Use our Back Pay Calculator to estimate what you're owed. For state-specific calculations, use our state calculators.

How to Claim Back Pay

If you believe you're owed back pay, follow these steps:

1. Document Everything: Keep records of hours worked, pay received, pay stubs, timecards, and any communications with your employer
2. Calculate What You're Owed: Use our back pay calculator to estimate your claim
3. File a Complaint: File with your state labor department or the federal Department of Labor (DOL)
4. Consider Legal Action: For significant amounts or if your employer disputes the claim, consult an employment attorney
5. Know the Deadline: Be aware of statute of limitations (typically 2-3 years for FLSA claims)

Statute of Limitations

The time limit to file a back pay claim varies:

• Federal FLSA: 2 years (3 years for willful violations)
• State Laws: Vary by state, typically 1-6 years
• Important: The clock typically starts from the date the wages were due, not when you discovered the violation

It's crucial to file promptly, as delays can reduce or eliminate your claim.