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What UK workers can learn from the Wisconsin back-wages case about overtime and employer compliance

jjoblondon

2026-02-04

11 min read

See what the Wisconsin back‑wages case warns UK workers about unpaid overtime. Learn how to spot underpayment and take practical steps to reclaim pay.

Missed pay, long hours and no clear records: why UK workers should pay attention to a US back‑wages ruling

Hook: If you worry your employer isn’t recording all your hours, or you’ve been told overtime is ‘unpaid’ by contract, you’re not alone—and the recent Wisconsin back‑wages judgment is a cautionary example for UK workers and employers in 2026. That case shows how poor record keeping and “off‑the‑clock” work can cost employers six‑figure judgments. In the UK, different rules apply, but the practical risks and steps for workers are similar.

Why the Wisconsin case matters to UK workers now

In late 2025 a US federal court approved a consent judgment ordering a Wisconsin health provider to pay $162,486 in back wages and liquidated damages after investigators found staff had been working unrecorded hours and not receiving overtime. The problem wasn’t just pay rates: it was unrecorded time and weak recordkeeping.

Lessons from abroad translate to the UK. Regulators and tribunals increasingly focus on evidence that shows hours worked and whether pay reflects those hours. By 2026 we’re seeing stronger enforcement trends, better data analytics used by regulators, and employers introducing automated time tracking. That helps workers — if records are kept properly — but it also means failures stand out.

Key takeaways from the US case

Off‑the‑clock work is a common cause of underpayment claims.
Poor record keeping makes employers vulnerable to large back‑pay orders.
Regulators will use investigations to recover back pay and penalties — and group claims increase leverage.

How UK wage law compares: what you need to know

The UK system differs from the US Fair Labor Standards Act in important ways, but the core protections are similar: workers have legal rights to the pay they’re owed, and employers must keep certain records.

Overtime in the UK: there is no automatic premium

Unlike the US formula that pays time‑and‑a‑half over 40 hours, the UK does not automatically require employers to pay a premium rate for overtime. Whether overtime is paid at a higher rate depends on your contract or workplace policy. However, other legal safeguards apply:

National Minimum Wage (NMW): Employers must ensure total pay divided by hours worked meets the NMW or National Living Wage for your age group.
Contractual overtime: If your contract promises overtime pay, the employer must honour it.
Working Time Regulations: Provide rest breaks and limits on average weekly hours (with opt‑outs possible).

Record keeping and enforcement

Employers must keep records that demonstrate NMW compliance. HM Revenue & Customs (HMRC) enforces NMW and can investigate and recover unpaid wages. Employment Tribunals can hear claims for unlawful deductions from wages, breach of contract and other employment rights.

Worker status matters

Your remedy depends on whether you’re an employee, a worker or genuinely self‑employed. Most day‑to‑day claims for unpaid wages or NMW are available to employees and workers; genuinely self‑employed people generally can’t use employment tribunals for wage claims.

Spotting unpaid overtime: a practical checklist

Many underpayment cases start with everyday signs. Use this checklist to decide if you should investigate your pay further.

Red flags

You regularly work extra shifts or perform tasks before/after scheduled hours with no extra pay.
Managers tell you not to “clock in” for certain tasks or call time sheets “estimates.”
Overtime is described as “unpaid training” or absorbed into normal duties without clear contractual terms.
Payslips don’t match your own records of hours, tips or commission arrangements.
Your average hourly pay (total pay ÷ hours worked) falls below the National Minimum Wage/National Living Wage.
There’s no formal time‑recording system for shift start/finish, breaks, travel between sites or on‑call duties.

Evidence to gather right away

Good evidence is key. Collect the following and store copies securely (email to yourself, keep screenshots):

Copies of payslips and bank statements showing salary payments.
Rotas, shift confirmations, text messages and WhatsApp threads confirming hours.
Timesheets (paper or electronic), swipe card logs, calendar entries and emails showing start/finish times.
Photographs of physical clocks, job sheets and hand‑written notes if needed.
Written instructions from managers asking staff to work “off the clock.”
Statements from colleagues (signed, dated) corroborating your hours.

How to calculate a likely shortfall

Make a simple calculation to estimate what you might be owed. This helps you decide whether to escalate.

Count total hours worked each pay period (include overtime, travel time between sites if paid, on‑call where appropriate).
Calculate your effective hourly rate: total pay for the period ÷ total hours worked.
Compare that to the minimum rate you should have received (contractual overtime rate, or NMW/NLW for your age).
Shortfall = (correct hourly rate − effective hourly rate) × total hours worked.

Example: you worked 45 hours in a week, are on £11/hour base, contract says overtime at time‑and‑a‑half for hours over 40. If employer paid you £11 × 45 = £495 but should have paid £11×40 + £16.50×5 = £550, your weekly shortfall is £55.

Steps to take if you suspect underpayment (a phased plan)

Act methodically. The stronger your evidence and the earlier you act, the better your chances of resolving the issue without formal litigation.

Step 1 — Track and document

Start immediately: keep a contemporaneous record of hours, tasks and times you were told not to record time.
Save payslips and communication threads. Get colleague statements where possible.

Step 2 — Informal raise with manager or payroll

Often mistakes are resolved informally. Send a clear, factual email asking for payroll to check and correct your hours.

Sample email to manager/payroll:
Subject: Query: pay for hours worked (week/month) — [Your name]
Hi [Manager’s name], I hope you’re well. I’ve checked my payslip for [period] and my records show I worked [hours] (attached). The payslip indicates [paid hours/pay]. Could you please check payroll records and confirm whether there’s a discrepancy? I’m happy to meet to go through the shift logs. Thanks, [Your name].

Step 3 — Formal grievance if unresolved

If informal contact fails, use your workplace grievance procedure. Put dates, amounts and evidence. Keep copies of the response and appeal outcomes.

Sample grievance outline:
I raise a grievance regarding underpayment of wages. Between [dates] I worked [hours] but was only paid for [hours]. Evidence attached: payslips, rota, text messages and colleague statements. I seek back pay for the shortfall and confirmation of corrected hours on future payslips.

Step 4 — ACAS Early Conciliation

Before taking most claims to an Employment Tribunal you must contact ACAS for Early Conciliation. This pauses the tribunal time limit and opens a chance to settle without litigation.

Tip: Early Conciliation is free and often effective. Use it to get a written settlement or a clear timeline for tribunal if conciliation fails. If you want alternatives to formal mediation, see local experiments in micro‑mediation hubs that aim to cut escalations early.

Step 5 — Choose the right route: HMRC, Employment Tribunal or civil claim

National Minimum Wage complaints: Report to HMRC. HMRC can investigate and recover unpaid NMW and fines. HMRC may pursue historic underpayments dating back several years. Employers often need practical tools to manage repayments and cashflow — see our guide to forecasting and cash‑flow tools.
Unlawful deduction from wages / contract claims: Use the Employment Tribunal (ACAS early conciliation required first). Time limits for tribunal claims are generally tight — usually three months from the underpayment, minus any time spent in ACAS conciliation.
Small sums / contract disputes: For small unpaid sums not suitable for tribunal you might use the civil courts (small claims) if employment law route isn’t available, but check jurisdiction first.

Step 6 — Escalation and enforcement

If tribunal or HMRC finds in your favour, remedies can include back pay, interest, and in some cases penalties against employers. If an employer refuses to pay, a tribunal judgment can be enforced through court mechanisms. Employers that face tribunal risk often review their recruitment and HR stack — hiring managers should consider modern applicant tracking and hiring platforms to avoid future problems.

When to get legal or union help

If the shortfall is large, multiple staff are affected, or your employer is hostile, contact a union or an employment solicitor early. Unions can bring collective pressure and support multiple claims. Solicitors can prepare tribunal bundles and calculate complex pay claims (e.g., holiday pay based on overtime or variable pay).

Advanced strategies and 2026 enforcement trends

Enforcement and compliance in 2026 are shaped by three trends you should know about:

Data‑driven enforcement: Regulators increasingly use payroll and bank data to spot anomalies. Incomplete records make an employer’s position harder to justify.
Automation and time tracking: Many employers now use digital clocking and geolocation. That’s good for accuracy — but also increases the evidential weight of employer logs if they exist. If you want a simple starting point for capturing hours and tasks, consider a micro‑app timesheet to log contemporaneous records.
Greater focus on vulnerable groups: Enforcement agencies and unions are prioritising care sector, gig workers and young people who are more likely to suffer unpaid overtime.

Implication for workers

These trends mean that strong records and early action are vital. If your employer lacks transparent systems, you are more likely to succeed with a credible claim because regulators treat missing records as a red flag.

What employers should learn (quick guide for hiring managers)

While this article is targeted at workers, hiring managers and recruiters must act too. Lessons include:

Implement robust, auditable time‑recording systems with roster sync and make them transparent to staff.
Set clear contractual terms on overtime and ensure payslips reflect hours and rates.
Train managers not to request “off the clock” work and to log unavoidable out‑of‑hours duties properly.
Audit pay practices periodically and fix anomalies quickly to avoid escalation and reputational damage. Operational teams can use the Operational Playbook approach to embed regular checks.

Hypothetical UK case study modelled on Wisconsin — what could happen here

Imagine a regional care trust in England where 70 care coordinators work unrecorded extra hours to close caseloads. Like the Wisconsin example, managers discouraged recording short unpaid tasks. An audit triggered by a staff complaint found underpayment and poor records.

Possible UK outcomes:

HMRC investigates NMW compliance and orders back pay plus penalties for affected workers over several years.
Multiple staff pursue Employment Tribunal claims for unlawful deduction from wages and breach of contract; the employer faces aggregated compensation and costs.
Trust reputational damage leads to public scrutiny and internal reform: better rosters, training and a digital time system.

This mirrors the Wisconsin path: underpayment, investigation, and a judgment or settlement that forces corrective action.

Quick templates — use these to get started

Timesheet / evidence log (short)

Short script to ask HR for records

“Hi HR, please can you provide my detailed hours and payroll records for [period]. I’m checking for accuracy and will share any discrepancy I find.” Keep it professional and dated.

Top 10 practical takeaways

Keep contemporaneous records of hours, including short unpaid tasks and travel between sites.
Check payslips every pay period; save copies and bank statements.
Compare your effective hourly rate to NMW/NLW and contractual overtime rates.
Raise concerns informally first — document your communications.
Use your employer’s grievance process if the issue isn’t fixed.
Contact ACAS for Early Conciliation before an Employment Tribunal claim.
Report NMW breaches to HMRC — they can pursue historic underpayments.
Get union or legal advice for large or collective claims.
Don’t be put off by employer intimidation; whistleblower protections exist for many disclosures.
If multiple colleagues are affected, coordinate with them — group evidence strengthens a case.

Final words — treat the Wisconsin case as a warning and an opportunity

The Wisconsin judgment shows what happens when employers ignore off‑the‑clock work and fail to keep proper records. In the UK, the legal tools are different, but the outcome can be the same for employers that fail to comply: recovered wages, penalties, and reputational damage.

For workers, the path is straightforward: document, calculate, communicate, and escalate through the proper channels (internal grievance, ACAS, HMRC or tribunal). For employers, prevent problems by building transparent pay systems and auditing them regularly.

Call to action

If you suspect unpaid overtime or unpaid wages, start today: download our free timesheet template, save your payslips, and send a short email to payroll. If you want personalised guidance, contact Citizens Advice, your union, or a specialist employment solicitor. You can also sign up for our weekly newsletter for London‑specific hiring and pay updates.

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