Overtime under the Fair Labor Standards Act (“FLSA”) should be simple: when employees work more than forty hours, the employer must pay time-and-a-half. Yet overtime issues, wage theft schemes, and suspicious wage changes show up in workplaces every day. If you are an employee who notices your employer adjusting your rate the moment overtime appears, it raises legitimate alarm. And nothing in employment law says you must accept it quietly.
The recent decision in David Thompson v. Regions Security Services, Inc., 2025 WL 3251389 (11th Cir. 2025), reads like a guidebook on how an employer can violate the FLSA while insisting everything is normal. Thompson worked as a security guard for five years. When he worked standard schedules, he received $13 per hour. When the employer began scheduling him for no less than 60 hours a week, the hourly rate mysteriously dropped to $11.15. Once the overtime weeks stopped, the employer restored the original $13 rate. That pattern alone tells a story, and the United States Court of Appeals for the Eleventh Circuit recognized it immediately.
Thompson sued for unpaid overtime under the FLSA. The district court granted summary judgment in his favor. On appeal, the employer argued that he “agreed” to the rate reduction, that the wage change was lawful, and that he was not even a prevailing party entitled to attorney’s fees. The Eleventh Circuit Court of Appeals disagreed, holding that an employer cannot manipulate hourly rates based solely on the number of hours worked. The Court held that employers cannot “play[ ] with an employee’s hours and rates to effectively avoid paying time-and-a-half for an employee’s overtime hours.” It also reaffirmed that an employer violates the FLSA when a wage reduction is “justified by no factor other than the number of hours an employee worked.”
By the end, not only did Thompson secure back wages and liquidated damages, but the Court upheld an attorney’s fee award exceeding $94,000—because overtime rights matter, and wage and hour laws exist to be enforced.
This case speaks directly to employees who worry they are being underpaid or pressured into accepting unfair wage arrangements. Thompson’s victory makes clear that when employers misuse pay structures to avoid overtime, employment law provides powerful tools to hold them accountable.
Can My Employer Drop My Hourly Rate Just When I Start Working Overtime?
Employees often assume their employer can change their pay at will. While wages can change prospectively, the FLSA bars manipulative pay practices designed to erase overtime obligations. A sudden rate drop that coincides with heavy overtime scheduling is not a neutral business decision. It can be a sign of wage theft.
In Thompson’s case, the employer paid him $13 per hour when he worked standard schedules. The moment they required him to work sixty-hour weeks, they lowered his rate to $11.15. That reduction significantly decreased the overtime wage, since overtime is calculated at one-and-a-half times the regular rate. When overtime ended, the employer immediately restored the original $13. That sequence was the entire case.
The Eleventh Circuit Court of Appeals agreed with the district court that nothing in the record justified this wage drop other than the total hours Thompson worked. Under the FLSA, that cannot stand. The Court held that the FLSA does not allow an employer to structure pay in a way that “negate[s] the statutory purposes” of overtime protections. If the pay rate only drops during overtime weeks, the law treats it as a strategy to avoid paying proper overtime.
One crucial detail: the Court highlighted that during the reduced-rate period, Thompson earned only about 50 cents more than he would have earned had he been paid $13 for all sixty hours. That fact mattered because it showed the reduction eliminated nearly all overtime benefit. In wage and hour terms, that is a red flag.
For employees, the lesson is straightforward. If your employer suddenly reduces your hourly rate during periods of heavy overtime—especially if the rate jumps back up when overtime ends—this may signal that your FLSA rights are being sidestepped.
Practical Tip: Save your paystubs. A timeline showing your hours and wage changes can be the single most important document for your attorney.
Best Overtime Pay Lawyer Blogs on Point:
- Can My Employer Refuse To Pay Me Overtime Because I’m Paid A Salary?
- Can My Job Cut My Regular Pay Rate To Avoid Paying Overtime?
- Most But Not All Employees Are Entitled To Overtime
How Do I Tell If My Employer Is Using a Pay Scheme as a Device To Evade Overtime?
Most employees do not spend their evenings reviewing federal regulations, and they shouldn’t need to. But 29 C.F.R. § 778.327 provides a simple rule: an employer may not use any “device” to avoid paying overtime required by the FLSA. A device is not a trick in the theatrical sense—it is any wage practice that shifts pay in a way that undermines overtime protections.
The Thompson case is a clear illustration. The employer reduced his rate only when overtime was guaranteed. That alone raised a reasonable inference of evasion. The Eleventh Circuit Court of Appeals held that when a reduction in wages is “justified by no factor other than the number of hours in [the] workweek,” it violates the overtime provisions. The Court characterized the employer’s approach as “prohibited arithmetic,” noting that employers cannot manipulate weekly averages to ensure an employee never truly receives time-and-a-half.
Signs that an employer may be using an improper device include:
- A pay rate that drops exclusively during long-hour weeks
- A rate restored instantly once overtime stops
- No business justification unrelated to hours
- Weekly totals that look nearly the same regardless of overtime worked
The Thompson record fit all these indicators. The employer offered no factor other than hours to explain the change. That absence of legitimate justification was decisive.
Employees often sense when something is off even before they see the numbers. A reduction that appears conveniently timed to overtime obligations is rarely coincidental. Wage and hour law is designed to guard against precisely this behavior, because the FLSA exists to ensure that employers feel real financial pressure before assigning long workweeks.
Practical Tip: Write down each time your employer changes your pay rate. Patterns reveal wage theft more powerfully than any one paycheck.
Best Wage Theft Attorney Blogs on Point:
- Is Overtime Only For Low And Middle Income Employees?
- There’s $4 Billion In Overtime Wage Theft Every Year – How Much Of That Is Yours
- Is It Illegal For My Job Not To Pay Me Overtime?
Can My Employer Claim I “Agreed” to a Lower Wage To Avoid Paying Overtime?
Employers often defend wage changes by claiming the employee agreed to the arrangement. The Thompson appeal shows why that argument rarely holds up under the FLSA.
The employer attempted to argue that Thompson wanted more hours and therefore accepted the lower wage. But the Eleventh Circuit Court of Appeals rejected this defense, holding that “the question of whether the employer has violated the FLSA does not hinge on contracts or agreements with the employee.” The Court emphasized that employees “cannot contract out of their FLSA rights.”
This is a crucial protection. Many employees accept unfavorable terms because they need the income or fear losing hours altogether. The law recognizes this imbalance. Even if Thompson wanted more weekly hours, the employer could not lawfully reduce his rate solely because overtime was involved.
The record also undermined the employer’s narrative. The CEO admitted he “did not negotiate that rate reduction with Thompson.” Thompson testified he was given a “take-it-or-leave-it” offer. That’s not mutual agreement. It’s pressure shaped as choice.
The Court held that the employer may not “nullify the FLSA’s overtime provisions” through contracts or other devices. That holding carries weight for any employee who worries they accidentally “agreed” to something illegal. Employment law protects you even when circumstances do not.
Practical Tip: If a wage cut is presented as “take it or leave it,” save that message. It often strengthens an employee’s case.
Best FLSA Law Firm Blogs on Point:
- Does Standby Time Count For Overtime Pay Calculations?
- Do Independent Contractors Have A Right To Overtime Pay?
- Is My Manager Personally Liable For Overtime Violations?
Can I Recover Mediation Costs and Fees in a Federal Overtime Lawsuit?
Many employees hesitate to pursue wage theft or overtime claims because they fear attorney’s fees. The FLSA was written to remove that barrier. When the employee wins, the employer pays the fees.
After the district court granted summary judgment in Thompson’s favor, he accepted a Rule 68 judgment awarding $5,650.82 in unpaid overtime and liquidated damages. The employer argued he was not a prevailing party and therefore not entitled to fees. The Eleventh Circuit Court of Appeals disagreed, holding that the Rule 68 judgment had “the necessary judicial imprimatur” to confer prevailing-party status.
The fee award totaled $94,627.50, including $858.75 in mediation costs. The Court held that reasonable litigation expenses, including mediation, may be recovered under the FLSA. The amount of damages does not control the fee award. The Court reiterated that fees must reflect the work required to vindicate federal wage rights, not the size of the underlying wage claim.
For employees, this matters enormously. A small overtime case can still justify significant attorney work. The FLSA ensures that employers, not employees, bear that cost when they violate wage and hour laws.
Practical Tip: Do not assume your case is “too small” to pursue. Fee-shifting exists so employees can enforce their rights without fear of the cost.
Best Wage Rights Attorney Blogs on Point:
- Are Outside Salespeople Exempt Form Overtime Pay Under The FLSA?
- Is An Assistant Manager Exempt From Overtime Pay Requirements?
Which Lawyer Should I Hire If I Suspect My Employer Is Violating the FLSA?
When you believe your employer is manipulating your pay, choosing the best employment law attorney becomes essential. Spitz, The Employee’s Law Firm is one of the largest firms in the country dedicated solely to employee rights. That focus gives us the resources and experience necessary to take on employers who engage in wage theft, overtime manipulation, or wage and hour violations.
We understand how confusing these situations feel. Wage reductions, shifting explanations, and sudden overtime demands can leave any employee uncertain about what is legal. Our attorneys bring extensive trial experience, a history of strong results, and an approach grounded in empathy. We take the time to understand your story, identify the violations, and build the strongest possible case.
Your consultation is free, and with our no-fee guarantee, you owe nothing unless we win. If you suspect your employer violated the FLSA, lowered your pay to avoid overtime, or participated in any form of wage theft, call Spitz today. The best way to protect your rights is to work with a lawyer who knows how to confront these practices directly.
Employment Lawyer Disclaimer
This blog provides general information about overtime, FLSA rights, wage theft, wage and hour issues, and employment law. It is not legal advice. Employees facing workplace problems should consult with a qualified employment lawyer or attorney to obtain guidance tailored to their situation. Reading this blog does not create an attorney-client relationship. No promises are being made regarding outcomes. This content is a legal advertisement intended to help employees understand their rights.