Working more than 40 hours doesn’t always mean a North Carolina payday claim is the right way to recover overtime pay. In Figueroa v. Butterball, LLC, the Fourth Circuit drew an important line between overtime required by federal law and claims brought under North Carolina’s Wage and Hour Act.
This article provides general information, not legal advice about any individual wage claim.
What the Fourth Circuit Decided in Figueroa
In its January 13, 2026 panel decision, the Fourth Circuit held that Butterball properly treated the plaintiff as an employee paid by completed units and correctly calculated his overtime under the Fair Labor Standards Act. Commonly called the FLSA, this federal law sets minimum wage and overtime requirements for many employees.
The court also held that when a worker seeks overtime compensation required by the FLSA, the worker must pursue the federal remedy rather than use North Carolina’s Wage and Hour Act payday provision as an alternative. That provision requires employers to pay wages and tips accrued by the regular payday, but it doesn’t create a separate remedy for FLSA-required overtime.
The decision doesn’t allow employers to withhold overtime. It establishes that the legal vehicle for an alleged FLSA violation is the federal statute and its remedies.
A petition asking the full Fourth Circuit to rehear the case was filed on January 26, 2026. The materials available for this post didn’t confirm a later disposition, so this article discusses the January panel decision without characterizing it as the final word in the case.
Why Piece-Rate Overtime Can Look Different
Piece-rate pay compensates a worker for units completed, such as items processed or work performed, instead of providing a set hourly wage. An employee paid this way can still be entitled to overtime after 40 hours in a workweek.
The regular rate is generally calculated by dividing total weekly earnings from completed units and other applicable sources by all hours worked that week. The overtime premium is typically an additional half-time payment for each hour over 40, rather than another full hourly rate.
The reason is straightforward: per-unit earnings already provide straight-time compensation for every hour worked, including hours above 40. The overtime payment adds the extra half of the regular rate required for those hours.
For example, assume a worker earns $900 for 45 hours of work. The regular rate is $20 per hour, calculated by dividing $900 by 45 hours. The worker would generally receive another $10 for each of the five overtime hours, or $50, for total weekly pay of $950.
That calculation doesn’t excuse missing hours, excluded pay, or an incorrect total-hours figure. Workers should compare their pay statements with the units credited, all hours worked, and any bonuses or incentives that affect the calculation.
Off-the-Clock Time Still Depends on Proof
The decision also matters to employees who perform required work before clocking in, after clocking out, or during unpaid time. Off-the-clock work is work an employer permits or requires but doesn’t include in recorded paid time.
The Fourth Circuit recognized that pre-shift activities are compensable when they’re integral to the employee’s job. In practical terms, an activity is more likely to count when it’s necessary to perform the job rather than a personal preparation or optional task.
The plaintiff’s claim failed for an evidentiary reason. Other workers testified about pre-shift activities, but he didn’t present evidence that he personally and regularly performed the alleged unpaid work. Evidence about someone else’s routine doesn’t automatically establish an individual’s lost time.
Records that can help reconstruct an individual claim include:
- Schedules, time entries, and screenshots of timekeeping records.
- Pay statements showing hours, per-unit earnings, and overtime calculations.
- Work messages, emails, or instructions showing tasks performed outside recorded hours.
- Notes identifying the date, task, and estimated time spent on required pre-shift or post-shift work.
Contemporaneous notes are useful because workplace systems and memories change over time. Employees should preserve records they can already access without taking confidential company materials they aren’t entitled to keep.
What Figueroa Doesn’t Eliminate
The decision doesn’t resolve every pay dispute. North Carolina permits compensation based on completed units, and state law excludes many workers covered by the FLSA from its separate minimum wage and overtime provisions. These rules explain why a North Carolina overtime dispute often requires an FLSA analysis.
Other disputes raise different questions. Final-pay disagreements, commission disputes, and claims involving promised compensation don’t necessarily depend on the overtime holding in Figueroa.
Employee misclassification also remains a separate issue. A title such as manager or supervisor doesn’t determine whether someone is exempt from federal overtime requirements. The employee’s actual duties and pay arrangement must satisfy the applicable exemption rules.
Available remedies can include unpaid wages and, depending on the claim and facts, liquidated damages. The legal theory affects the required proof, the filing deadline, and the remedies a court may consider.
Steps to Take When You May Be Owed Overtime
Start by comparing the time your employer recorded with the work you performed. Review one or more complete workweeks because federal overtime is generally measured by the workweek, not by averaging hours across multiple weeks.
Focus on the facts and records that affect the analysis:
- How you’re paid.
- Your total weekly hours.
- Your actual job duties.
- Your employer’s timekeeping rules.
- Any work expected outside your scheduled shift.
If you’re paid by completed units, use your weekly earnings and total weekly hours to check the calculation before assuming that a half-time premium is an error.
Timing matters. FLSA claims for unpaid overtime typically have a two-year limitations period, which can extend to three years for a willful violation. A complaint with the U.S. Department of Labor Wage and Hour Division and a private legal action are different paths, so employees should understand the consequences of each route.
Laura Noble is Board Certified in Employment Law by the North Carolina State Bar, and our team has more than 100 years of combined legal experience handling pay disputes, off-the-clock work, altered timecards, and misclassification concerns. For guidance based on your pay practices and records, contact The Noble Law Firm at (919) 324-3013.