What share of FLSA back-wage violations are overtime?

At the March PayrollOrg Capital Summit, Wage and Hour Division Administrator Andrew Rogers said violations of overtime rules continue to be the most common FLSA back-wage problem, “really not even close”, and that overtime accounts for nearly 80% of all FLSA back wage violations.

What did Opinion Letter FLSA2026-2 say about bonuses and the regular rate?

Opinion Letter FLSA2026-2 (January 2026) addressed a waste-management employer that excluded formula-driven incentive bonuses from the regular rate as discretionary. Citing 29 CFR §778.211(b), the DOL held that promising a bonus in advance abandons discretion, so the bonuses had to be included in the regular rate and prior overtime premiums were too low.

What did Opinion Letter FLSA2026-6 say about percentage-of-total-earnings bonuses?

Opinion Letter FLSA2026-6 (May 2026) stated that a quarterly bonus program can satisfy FLSA overtime without later regular-rate recomputation only when it is a genuine “percentage of total earnings” bonus under 29 CFR §778.210, preserving the ratio between straight-time and overtime pay and not diluting the overtime component.

What was the Franklin, Tennessee State Group enforcement action?

In June 2026 the DOL recovered $1,730,598 in back wages for 1,666 workers at The State Group in Franklin, Tennessee, averaging more than $1,000 per employee, for excluding bonuses from overtime calculations, the same bonuses-in-regular-rate pattern addressed in FLSA2026-2.

What changes for employers on February 1, 2027 regarding Code TT?

Starting with tax year 2026, every W-2 for an employee who received qualified overtime carries a Box 12 Code TT figure, the FLSA-required half-time premium for hours over forty at the employee’s FLSA regular rate, per IRS Fact Sheet 2026-13 and the 2026 General Instructions for Forms W-2 and W-3, due to employees and the Social Security Administration by February 1, 2027.

What three tests make a Code TT filing defensible?

A defensible Code TT figure must (1) isolate the FLSA-required half-time premium from every other overtime dollar, (2) fold every non-discretionary payment required by 29 CFR Part 778 into the regular rate, and (3) remain traceable to a primary regulatory source so the calculation trail travels with the number.

Numbers Don't Lie

Wage and Hour says overtime is nearly 80% of FLSA back-wage violations. Opinion letters, a Tennessee enforcement action, and the February 1, 2027 W-2 deadline put regular-rate math on every W-2.

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