WAGE AND HOUR DEMAND LETTER

Fair Labor Standards Act and State Wage Law Claims

[ATTORNEY/FIRM LETTERHEAD]

[Firm Name]
[Address Line 1]
[City, State ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Attorney Bar Number]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]

[Date]

[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]

Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]

Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective/class action contemplated]
Demand for Unpaid Wages Under FLSA and [State] Law
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408

Dear [Mr./Ms./Mx. Last Name]:

This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Fair Labor Standards Act ("FLSA"), 29 U.S.C. § 201 et seq., and the [State] [Wage Payment Act / Labor Code / Wage and Hour Law], [cite statute].

Please direct all further communications regarding this matter to our office.

Based on our investigation, [Company Short Name] has systematically failed to pay our client—and potentially [hundreds/thousands] of similarly situated employees—all wages required under federal and state law. We write to demand immediate payment of all unpaid wages, liquidated damages, penalties, and attorney's fees, and to provide notice of our intent to file suit if this matter is not promptly resolved.

I. INTRODUCTION AND SUMMARY OF CLAIMS

Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present]. During this employment, [Company Short Name] violated federal and state wage laws by:

☐ Failing to pay the minimum wage required under the FLSA and/or [State] law
☐ Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week
☐ Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
☐ Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
☐ Failing to pay for all hours worked, including:
☐ Off-the-clock work before/after shifts
☐ Uncompensated meal periods during which work was performed
☐ Work performed during unpaid rest breaks
☐ Time spent on required pre-shift or post-shift activities (donning/doffing, security checks, etc.)
☐ Travel time that should have been compensated
☐ Training time
☐ On-call time
☐ Failing to provide required meal and/or rest breaks under [State] law
☐ Making unlawful deductions from wages
☐ Failing to pay all wages due upon termination within the time required by [State] law
☐ Failing to provide accurate wage statements as required by [State] law
☐ Failing to reimburse necessary business expenses
☐ Unlawful tip pooling or tip credit violations
☐ Piece-rate violations
☐ Prevailing wage violations (public works projects)

The willful nature of these violations entitles our client to the extended three-year statute of limitations under the FLSA and liquidated (double) damages.

II. FACTUAL BACKGROUND

A. Employment Relationship

B. Hours Worked

Our client regularly worked the following schedule:

Typical Weekly Schedule:

Average overtime hours per week not compensated at 1.5x rate: [X hours]

C. Specific Wage Violations

[Complete Applicable Sections]

☐ Off-the-Clock Work

[Company Short Name] required or permitted our client to perform work before clocking in and/or after clocking out, including:

• [Describe specific off-the-clock tasks]
• [Estimated time per day/week]
• [Describe employer knowledge or policy requiring this work]

Estimated unpaid off-the-clock hours per week: [X hours]

☐ Overtime Misclassification

[Company Short Name] classified our client as exempt from overtime under the [Executive / Administrative / Professional / Computer Employee / Outside Sales / Highly Compensated Employee] exemption. This classification was improper because:

Salary Basis Test Failure:
☐ Our client was paid less than the required minimum salary of $[684/week federal or state amount]
☐ Our client's salary was subject to improper deductions
☐ Our client was paid hourly, not on a salary basis

Duties Test Failure:
☐ Our client did not have the primary duty of [managing the enterprise / performing office or non-manual work directly related to management or general business operations / work requiring advanced knowledge / etc.]
☐ Our client did not customarily and regularly direct the work of two or more employees
☐ Our client did not have authority to hire or fire, or meaningful input into such decisions
☐ Our client did not customarily and regularly exercise discretion and independent judgment on significant matters
☐ Our client spent more than [20% / 40%] of [his/her/their] time on non-exempt duties
☐ [Other duties test failure: describe]

In reality, our client performed the following non-exempt duties [X%] of the time:
- [Describe actual duties performed]
- [Describe lack of discretion and independent judgment]
- [Describe manual or routine work]

☐ Independent Contractor Misclassification

[Company Short Name] classified our client as an independent contractor rather than an employee. Under the economic reality test applied by the Department of Labor and courts, our client was an employee because:

☐ Meal and Rest Break Violations ([State] Law)

[State] law requires employers to provide:
- [Describe state meal break requirements, e.g., 30-minute unpaid meal break for shifts over X hours]
- [Describe state rest break requirements, e.g., 10-minute paid rest break per 4 hours worked]

[Company Short Name] violated these requirements by:
☐ Failing to provide meal breaks entirely
☐ Providing meal breaks of less than [30 minutes]
☐ Requiring employees to remain on-duty during meal breaks
☐ Interrupting meal breaks with work duties
☐ Automatically deducting meal break time even when breaks were not taken
☐ Failing to provide required rest breaks
☐ [Other violations: describe]

Under [State] law, our client is entitled to [one hour / premium pay] for each day a compliant meal or rest break was not provided.

☐ Unlawful Deductions

[Company Short Name] made the following unlawful deductions from our client's wages:

These deductions [reduced our client's pay below minimum wage / were not authorized in writing / are prohibited by [State] law regardless of authorization].

☐ Tip Credit / Tip Pool Violations

[Company Short Name] [took a tip credit against our client's minimum wage / maintained a tip pool] in violation of the FLSA and [State] law:

☐ Failed to provide required tip credit notice before taking the credit
☐ Required our client to share tips with non-tipped employees (managers, kitchen staff, etc.)
☐ Retained a portion of tips for the Company
☐ Failed to pay minimum wage plus tips for hours worked on non-tipped duties
☐ [Other tip violations: describe]

☐ Failure to Pay Final Wages Upon Termination

[State] law requires payment of all wages due within [X hours/days] of [termination / the next regular pay date]. [State Citation].

Our client's employment ended on [Termination Date]. [Company Short Name] failed to pay all wages due until [Date Actually Paid] or has still not paid the following amounts owed:

Under [State] law, our client is entitled to waiting time penalties of [describe state penalty, e.g., one day's wages for each day payment is delayed, up to 30 days].

III. LEGAL ANALYSIS

A. Fair Labor Standards Act, 29 U.S.C. § 201 et seq.

The FLSA establishes federal minimum wage and overtime requirements for employees engaged in interstate commerce or employed by enterprises engaged in commerce.

1. Minimum Wage (29 U.S.C. § 206)

The current federal minimum wage is $7.25 per hour. [If state minimum is higher: [State]'s minimum wage of $[X.XX] per hour applies because it exceeds the federal minimum.]

By [describe violation], [Company Short Name] failed to pay our client the minimum wage for all hours worked.

2. Overtime (29 U.S.C. § 207)

The FLSA requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek.

Our client worked an average of [X hours] per week during the relevant period. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.

3. Employer Coverage

[Company Short Name] is subject to the FLSA because:

☐ Enterprise Coverage: [Company Short Name] is an enterprise engaged in commerce or the production of goods for commerce with annual gross sales of at least $500,000. 29 U.S.C. § 203(s)(1)(A).

☐ Individual Coverage: Our client was individually engaged in interstate commerce or the production of goods for commerce because [describe activities affecting interstate commerce].

☐ [Hospital / School / Government Coverage]: The FLSA applies regardless of dollar volume. 29 U.S.C. § 203(s)(1)(B).

4. Willful Violation and Extended Statute of Limitations

[Company Short Name]'s violations were willful, entitling our client to the three-year statute of limitations under 29 U.S.C. § 255(a).

A violation is willful if the employer "knew or showed reckless disregard for the matter of whether its conduct was prohibited by the statute." McLaughlin v. Richland Shoe Co., 486 U.S. 128, 133 (1988).

[Company Short Name]'s willfulness is demonstrated by:
- [Knowledge of FLSA requirements through prior lawsuits, DOL investigations, or legal advice]
- [Deliberate misclassification despite knowledge of proper classification]
- [Policies designed to avoid overtime (e.g., instructing employees not to record all hours)]
- [Pattern of violations across multiple employees]
- [Other evidence of willfulness]

5. Liquidated Damages

Under 29 U.S.C. § 216(b), employees are entitled to liquidated damages equal to the amount of unpaid wages—effectively doubling recovery.

Liquidated damages are mandatory unless the employer proves it acted in good faith and had reasonable grounds to believe its conduct complied with the FLSA. 29 U.S.C. § 260. Given the willfulness of [Company Short Name]'s violations, this defense is unavailable.

B. [State] Wage and Hour Law

[State]'s wage and hour laws provide additional protections beyond the FLSA:

[State Wage Payment Act / Labor Code Citation]

State-Specific Remedies:

[State] law provides the following remedies in addition to or in lieu of FLSA remedies:

☐ Liquidated damages of [X times / X% of] unpaid wages
☐ Statutory penalties of $[X] per violation per pay period
☐ Waiting time penalties of [describe]
☐ Civil penalties payable to the state
☐ [Other state-specific remedies]

☐ Private Attorney General Act ([State], if applicable): Our client may pursue claims on behalf of the state and recover civil penalties.

C. Collective and Class Action Potential

FLSA Collective Action (29 U.S.C. § 216(b))

The FLSA authorizes "similarly situated" employees to join together in a collective action to recover unpaid wages. Our investigation indicates that [Company Short Name]'s violations are not limited to our client but extend to [describe scope: job classification, locations, departments].

We are prepared to seek court-authorized notice to all similarly situated employees, which could result in [hundreds/thousands] of opt-in plaintiffs and exponentially increase [Company Short Name]'s exposure.

State Law Class Action

Under [State] procedural rules, wage claims may be pursued as class actions under [Rule 23 / State equivalent]. The common policies and practices giving rise to our client's claims satisfy the requirements for class certification.

IV. DAMAGES CALCULATION

A. FLSA Damages

Relevant Period: [Start Date - 3 years prior to anticipated filing] to [End Date / Present]
Total Weeks in Period: [X weeks]

1. Unpaid Overtime

2. Unpaid Minimum Wage

3. Off-the-Clock Work

4. FLSA Unpaid Wages Total: $[Amount]

5. FLSA Liquidated Damages (Equal Amount): $[Amount]

FLSA Total (Wages + Liquidated Damages): $[Amount]

B. State Law Damages

Relevant Period: [Start Date - per state SOL] to [End Date / Present]

1. Additional State Wage Claims

2. State Statutory Penalties

3. State Liquidated Damages / Multipliers

[If state provides separate liquidated damages or multipliers:]
State liquidated damages ([X times] unpaid wages): $[Amount]

State Law Total: $[Amount]

C. Pre-Judgment Interest

Pre-judgment interest on unpaid wages: $[Amount]
(Calculated at [X%] per annum under [federal/state] law)

D. Attorney's Fees and Costs

The FLSA and [State] law mandate an award of reasonable attorney's fees and costs to the prevailing employee. 29 U.S.C. § 216(b); [State citation].

Estimated attorney's fees through trial: $[Amount]
Estimated litigation costs: $[Amount]

E. Summary of Individual Damages

F. Collective/Class Action Exposure (For Employer Consideration)

If this case proceeds as an FLSA collective action and/or state law class action:

V. SETTLEMENT DEMAND

Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name] arising from the wage and hour violations described herein.

This demand includes:
- Unpaid wages (FLSA and state law)
- Liquidated damages
- Statutory penalties
- Pre-judgment interest
- Attorney's fees and costs incurred to date

This demand represents a significant discount from the full value of our client's claims at trial and does not account for the substantial additional exposure [Company Short Name] faces if this matter proceeds as a collective and/or class action.

Settlement Terms

☐ Payment within [30 days] of execution of settlement agreement
☐ Payment via certified funds made payable to [Firm Name Client Trust Account / Jointly to Client and Firm]
☐ Form W-2 for wage component; Form 1099 for non-wage component (allocation to be negotiated)
☐ Mutual release of claims (excluding claims for vested benefits and workers' compensation)
☐ Confidentiality provisions (subject to negotiation)
☐ Non-disparagement (mutual)
☐ Neutral reference

VI. RESPONSE AND LITIGATION

Please respond to this demand in writing within [fourteen (14) / twenty-one (21)] calendar days of receipt, no later than [Response Deadline Date].

If we do not receive a satisfactory response by that date, we will file suit without further notice. The Complaint will be filed in:

☐ United States District Court for the [District] of [State] (FLSA claims and supplemental state law claims)
☐ [State] [Superior/Circuit/District] Court (state law claims)

The Complaint will assert:

1. Violation of the Fair Labor Standards Act, 29 U.S.C. § 206 (Minimum Wage)
2. Violation of the Fair Labor Standards Act, 29 U.S.C. § 207 (Overtime)
3. Violation of [State Wage Payment Act], [Citation] (Unpaid Wages)
4. Violation of [State Overtime Law], [Citation] (Overtime)
5. Violation of [State Meal/Rest Break Law], [Citation] (Meal and Rest Period Violations)
6. Violation of [State Wage Statement Law], [Citation] (Inaccurate Wage Statements)
7. Violation of [State Final Pay Law], [Citation] (Waiting Time Penalties)
8. [Additional claims as applicable]

We will seek certification of this matter as an FLSA collective action under 29 U.S.C. § 216(b) and/or as a class action under [Rule 23 / State equivalent], which will dramatically increase [Company Short Name]'s exposure and defense costs.

VII. DOCUMENT PRESERVATION

LITIGATION HOLD NOTICE

This letter constitutes formal notice of our client's claims and intent to file suit. [Company Short Name] must immediately implement a litigation hold to preserve all documents and electronically stored information relevant to these claims.

Documents to be preserved include, without limitation:

☐ Time and attendance records for all employees (electronic and paper)
☐ Payroll records, including pay stubs, registers, and tax records
☐ Personnel files, including job descriptions and classifications
☐ Employee handbooks, policies, and procedures
☐ Scheduling records and shift assignments
☐ Emails and communications regarding timekeeping, overtime, breaks, and pay practices
☐ Training materials regarding wage and hour compliance
☐ DOL investigation files, if any
☐ Prior litigation files involving wage claims
☐ Tip records and tip pool documentation
☐ Commission and bonus records
☐ Expense reimbursement records
☐ Contracts with staffing agencies or payroll companies

Spoliation of evidence will result in severe sanctions, including adverse inference instructions and potential default judgment.

VIII. CONFIDENTIALITY

This letter is a confidential settlement communication made in anticipation of litigation and is protected under Federal Rule of Evidence 408 and applicable state evidentiary privileges.

We look forward to your prompt response and a constructive dialogue regarding resolution of this matter.

Sincerely,

[Attorney Name]
[Title]
[Firm Name]

[Attorney Signature Block]

Enclosures:
☐ Authorization to Represent
☐ Pay stubs / wage statements (sample)
☐ Time records (if available)
☐ [Other supporting documentation]

cc: [Client Name] (via email)
[Co-counsel, if any]
[File]

ATTORNEY NOTES (Do Not Include in Final Letter)

Statute of Limitations Reference

Pre-Sending Checklist

☐ Calculate all unpaid wages with supporting documentation
☐ Determine proper regular rate of pay (including bonuses, commissions, etc.)
☐ Analyze exemption classification (salary basis AND duties tests)
☐ If misclassification case, conduct economic reality or ABC test analysis
☐ Research current state minimum wage and overtime requirements
☐ Determine state-specific penalties and multipliers
☐ Assess collective/class action potential
☐ Verify enterprise vs. individual FLSA coverage
☐ Calendar statute of limitations for all claims
☐ Confirm employer's legal name and registered agent
☐ Consider whether DOL complaint is also appropriate
☐ Review any arbitration agreement or class action waiver

State Minimum Wage Quick Reference (2026)

Regular Rate Calculation Reminders

The "regular rate" for overtime purposes must include:
- Base hourly rate
- Non-discretionary bonuses (prorated over period earned)
- Shift differentials
- Piece rate earnings
- Commissions

Exclusions:
- Discretionary bonuses
- Gifts
- Vacation/holiday pay
- Reimbursements
- Premium overtime already paid