Overtime Pay Theft in the Mining Industry: What You Need to Know

How improper pay calculations are costing employees wages.

If you work in the mining industry, you know the job often demands long hours and overtime. But are you being paid what you’re owed? Many mining companies fail to include bonuses, incentives, and extra pay in their overtime calculations, shortchanging workers in violation of the Fair Labor Standards Act (FLSA). If you suspect your paycheck isn’t adding up, you’re not alone—and you have the right to recover what you’ve earned.

Under the FLSA, overtime pay must be calculated at one and a half times your “regular rate of pay” for any hours worked over 40 in a week. The regular rate of pay isn’t just your base hourly wage—it must also include shift differentials, production bonuses, safety incentives, and other forms of extra compensation. Mining companies that calculate overtime solely on base wages are cutting corners and, in doing so, violating federal wage laws.

The difference can be significant. For example, if you earn a $20 base hourly wage but receive an additional $5 per hour in production bonuses, your regular rate of pay is $25 per hour. If you worked 10 hours of overtime in a week, your overtime pay should be $37.50 per hour (1.5 times $25), not $30 per hour (1.5 times $20). Over weeks, months, or years, this discrepancy can result in thousands of dollars of unpaid wages.

Miners across the country are speaking up about this pay abuse, and you should too if you suspect any potential violation.

To determine if you’re being underpaid, review your pay stubs and identify any bonuses or incentives. Compare the overtime rate on your paycheck to the correct calculation, factoring in all forms of compensation. If you spot discrepancies, it’s time to take action. Under the FLSA, you can file a claim to recover unpaid overtime wages, and you may even be eligible for double damages as compensation for the violation.

Don’t let your hard-earned pay slip away. Contact Kennedy Law Firm today for a free case review.