Worker Rights and Back Pay: How the Wisconsin Ruling Signals Risks for Employers (and How Employees Can Claim What They're Owed)

The Wisconsin ruling is a wake-up call: employers can’t ignore off‑the‑clock work — and employees have clear steps to get back wages.

If you suspect unpaid overtime or “off‑the‑clock” time, you’re not alone. A recent federal consent judgment involving a Wisconsin health system shows how quickly unpaid hours can turn into six‑figure liabilities for employers — and how employees can secure back wages and liquidated damages through the Department of Labor or the courts. This article breaks down the ruling, explains how wage‑and‑hour claims work in 2026, and gives a practical step‑by‑step playbook for employees to recover unpaid overtime pay.

Top line: What happened in Wisconsin (and why it matters now)

In a consent judgment entered Dec. 4, 2025, the U.S. District Court for the Western District of Wisconsin required North Central Health Care to pay a total of $162,486 to 68 case managers — split as $81,243 in back wages and an equal amount in liquidated damages. The U.S. Department of Labor’s Wage and Hour Division (WHD) found the employer failed to record and pay employees for hours worked off the clock, including overtime, during the period from June 17, 2021, to June 16, 2023.

“The Department’s investigation found the employer did not pay case managers all wages owed for off‑the‑clock work, including overtime.”

This case is part of a broader enforcement trend in late 2025 and early 2026: regulators are prioritizing investigations into healthcare employers, remote/off‑site work, and recordkeeping failures. The takeaway for employees is straightforward — if you worked uncompensated time, there are documented legal pathways to recover what you’re owed.

How wage‑and‑hour claims work in 2026: the framework

Federal baseline: The Fair Labor Standards Act (FLSA)

• The FLSA requires nonexempt employees to be paid at least the federal minimum wage and overtime pay at one and one‑half times the regular rate for hours over 40 in a workweek.
• An employer that willfully violates the FLSA can be liable for back wages and an equal amount in liquidated damages. The WHD enforces these rules and can investigate employer records and payroll practices.
• The statute of limitations is generally two years, or three years for willful violations — meaning you can seek unpaid wages for work done in the last two to three years depending on willfulness.

State law and additional remedies

Many states (including Wisconsin) have their own wage laws that can provide added protections, penalties, or longer statutes of limitations. State labor agencies can sometimes offer faster remedies or civil penalties in addition to federal damages.

Private lawsuits and collective actions

Employees can also file private lawsuits. Under the FLSA, similarly situated employees can opt into a collective action. Successful plaintiffs commonly recover:

• Back wages (unpaid regular and overtime pay)
• Liquidated damages (often equal to back wages)
• Attorney fees and court costs (FLSA fee‑shifting helps employees secure counsel)

Why case managers and healthcare workers are often at risk

Case managers and many healthcare roles involve a mix of onsite work, travel, electronic charting, on‑call duties, and paperwork outside scheduled shifts — classic scenarios where unpaid time accumulates:

• Travel between patient sites during a shift may be compensable.
• Pre‑shift or post‑shift EMR documentation and care coordination (emails, calls) can add uncompensated minutes or hours.
• Managers’ informal expectations — “finish this at home” — can create off‑the‑clock obligations.

In the Wisconsin case, investigators found hours were not recorded and paid, which triggered the FLSA violations and the resulting judgement.

Practical, step‑by‑step guide for employees to recover unpaid overtime

Below is an actionable playbook you can use today if you believe you’ve been underpaid.

Step 1 — Document everything (sooner is better)

• Collect paystubs, timecards, and schedules. Screenshot electronic schedules and payroll portal pages.
• Log your hours daily in a simple spreadsheet — include start/stop times, meal breaks, travel between sites, EMR work, and calls/emails done off shift.
• Save emails, texts, and calendar invites that show overtime expectations (e.g., messages asking you to finish notes after hours).
• Get coworker statements: short written affidavits describing similar practices are powerful evidence.

Step 2 — Do a preliminary calculation (estimate what you may be owed)

Use this simple formula to estimate overtime owed in a single week:

1. Total hours worked in the week – 40 = overtime hours
2. Overtime pay = overtime hours × 1.5 × regular rate

Example: If your regular hourly rate is $28 and logged/unpaid hours put you at 48 hours for a workweek:

• Overtime hours = 48 − 40 = 8
• Overtime pay = 8 × 1.5 × $28 = 8 × $42 = $336

Repeat this for each week you believe was unpaid or underpaid. For FLSA calculations, remember the regular rate may include non‑discretionary bonuses, shift differentials, and other pay components — so don't assume the base wage tells the whole story.

Step 3 — File a complaint with the Wage and Hour Division (WHD)

• The WHD accepts complaints online, by phone, or in person. Filing is free. The WHD can investigate and attempt to recover back wages without requiring a private lawsuit.
• Provide copies (not originals) of your documentation and a clear timeline of unpaid hours.
• Be prepared for the WHD to contact your employer and to interview you and possibly coworkers. The WHD will evaluate recordkeeping and may open a formal investigation.

Step 4 — Consider private counsel or a collective action

If the WHD referral is slow, the employer doesn’t cooperate, or you have many similarly situated coworkers, consult an employment lawyer with FLSA experience. Key points:

• Many employment lawyers accept FLSA cases on contingency or limited retainer because fee‑shifting allows recovery of attorney fees.
• Collective actions can increase leverage and make settlement more likely, but timing and procedural steps differ from individual suits.

Step 5 — Track the timeline and act within deadlines

• Remember the FLSA statute of limitations: generally two years, three for willful violations. File as soon as you reasonably can.
• State labor office statutes may have different limitations and additional penalties — check your state labor office or an attorney.

Step 6 — If you win: collecting judgment and next steps

• Successful claims commonly include back wages plus liquidated damages equal to back wages, and attorney fees.
• Judgments may be satisfied via direct payment, negotiated settlement, or payroll adjustments.
• Even after relief, consider requesting policy changes at your employer to prevent recurrence (timekeeping systems, manager training, written off‑the‑clock policies).

What to expect during a DOL investigation (and how to cooperate)

The WHD operates on facts and records. Typical process steps:

1. Initial intake and complaint review.
2. On‑site or remote interviews and payroll/time record requests from the employer.
3. WHD staff compare employer records to employee assertions and may issue a finding.
4. If violations are found, WHD seeks back wages and liquidated damages; cases can be resolved by negotiated settlement or litigation.

Cooperate fully, provide accurate information, and avoid embellishing hours. Clear documentation and consistent coworker statements strengthen claims.

Legal damages and what makes a claim “strong”

Typical recoverable items in a strong FLSA claim:

• Back wages for unpaid regular and overtime pay
• Liquidated damages equal to back wages unless employer proves good faith
• Attorney fees and costs (shifted to the employer on a successful claim)
• Potential state law penalties where available

Claims are strongest when you can show: (1) consistent documentation of unpaid time; (2) employer recordkeeping fails or direct communications showing expectations to work off the clock; or (3) similar complaints from coworkers suggesting systemic problems.

Employer risk checklist — why managers need to act now

The Wisconsin judgment highlights concrete employer exposures. Employers that ignore these risks face:

• Financial liability for back wages and liquidated damages
• Attorney fees and litigation costs
• Regulatory scrutiny and repeated audits
• Reputational damage and turnover in critical roles like case managers

Practical employer fixes (what HR and payroll should implement for 2026)

• Audit and correct timekeeping systems, including for remote and off‑site staff.
• Train managers to prohibit and report off‑the‑clock work.
• Clarify the classification of employees (exempt vs. nonexempt) and document the legal basis for exemptions.
• Use modern time‑tracking tools (GPS/geofence for field staff where lawful, secure EMR integration) and ensure records are auditable.
• Regularly review compensation policies for nondiscretionary bonuses and other inclusions to the regular rate.

2026 trends and what to watch next

Regulatory and industry shifts through 2025 into 2026 point to several practical realities:

• WHD continues prioritizing investigations in healthcare and jobs that mix remote and in‑person duties.
• AI and automation increase scrutiny: payroll processors and auditors use data analytics to spot anomalies in time records faster than before.
• Expect more settlements and consent judgments as employers weigh litigation risk versus remediation costs.

For employees, that means higher chances the WHD will act on credible complaints. For employers, it means proactive compliance is cheaper than retroactive remediation.

Quick checklist: What to do this week if you think you’re owed unpaid overtime

• Start a daily time log (even if retrospective) with dates and times of unpaid work.
• Download and save paystubs, schedules, and payroll portal histories.
• Collect emails/messages showing off‑the‑clock expectations.
• Talk privately to coworkers — shared experiences can form a collective claim.
• File a WHD complaint if documentation supports unpaid hours, and consult an employment lawyer if the employer is unresponsive.

Final thoughts — your rights, your money

The Wisconsin consent judgment is more than a regional headline — it’s a clear indicator that regulators are enforcing recordkeeping and overtime rules and that employees can successfully recover lost pay. If you’re an employee who has performed unpaid work, the signal is simple: document, estimate, and act. The legal framework is designed to help workers recover both back wages and legal damages for violations of wage‑and‑hour rules.

Need a starting template? Copy this when you file a WHD complaint or meet a lawyer:

• Your name, job title, and dates of employment.
• Exact description of unpaid tasks (EMR notes, travel, after‑hours calls) with dates and time estimates.
• Copies of paystubs and schedules showing regular pay and recorded hours.
• Names and contact info of coworkers with similar experiences (if any).
• Your estimate of hours unpaid and calculated damages (attach your spreadsheet).

Call to action: If you believe you were denied overtime pay, don’t let time lapse. Start documenting now, file a complaint with the Department of Labor’s Wage and Hour Division, and get a free consult with an employment attorney. The Wisconsin case shows the system can work — and that employers who ignore off‑the‑clock work may have to pay twice what they owe.

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