We checked 22 claims in this article against federal wage-hour regulations, IRS withholding guidance, California and Massachusetts wage-payment law, and public court opinions. All 22 verified; no unsupported, outdated, or unresolved claims remain.
This article is a reader-facing guide, not the full source layer. The fact check focuses on the claims an employer would act on: the rate-change formula, the overtime recompute, bonus allocation, supplemental wage withholding, FLSA liquidated damages, good-faith limits, California final-pay and wage-statement exposure, Massachusetts treble damages, recordkeeping, and the calculator's scope.
Ship verdict: the article can ship under this fact-check. The main limitation is intentional: the article explains when a correction becomes complex, then points readers to the research and calculator instead of trying to model every state, bonus, commission, and litigation path inside one article.
1 claim
Retro pay is the correction when an employee was paid too little for a past period
The article uses the common payroll meaning of retro pay: the employee was paid, but not enough, because a prior period needs correction.
5 claims
A retroactive pay increase raises the regular rate for the retroactive period
29 CFR §778.303 states that a retroactive pay increase operates to increase the regular rate for the period of retroactivity.
A rate change requires straight-time retro plus an additional half-time recompute for overtime hours
The article's formula follows the regulation's example: straight-time difference for affected hours plus 0.5 x the rate difference for each overtime hour.
Non-discretionary bonuses usually have to be included in the regular rate
DOL lists production, attendance, quality, accuracy, and safety bonuses as examples of non-discretionary bonuses that must be included in the regular rate.
Bonuses covering more than one workweek must be allocated back across the covered workweeks when overtime is recomputed
The regulation permits allocation across workweeks or by hours when exact weekly allocation is impossible.
Federal payroll records must generally be kept three years and supplementary wage computation records two years
§516.5 covers the three-year payroll-record rule; §516.6 covers two-year supplementary records.
2 claims
A $20 to $22 raise over 180 hours with 20 overtime hours produces $380 total retro pay
$2 x 180 hours = $360. Additional overtime premium is 0.5 x $2 x 20 overtime hours = $20. Total is $380.
A $600 bonus over 12 weeks with 45 hours each week produces $33.33 in additional overtime premium
$600 / 12 weeks = $50/week. $50 / 45 hours = $1.111/hour. 0.5 x $1.111 x 60 overtime hours = $33.33 after rounding.
1 claim
Paying only the straight-time difference leaves unpaid overtime when the affected period included overtime
The straight-time-only shortcut omits the regulation's additional half-time premium for overtime hours.
2 claims
IRS Publication 15 treats back pay and retroactive pay increases as supplemental wages
IRS Publication 15 includes both back pay and retroactive pay increases in its supplemental-wages examples.
FAB 2025-3 says WHD will not seek liquidated damages in pre-litigation administrative settlements under §216(c)
The article limits the bulletin to WHD's pre-litigation administrative settlement posture and does not extend it to private lawsuits or Secretary litigation.
2 claims
The 2026 federal supplemental withholding rates are 22% generally and 37% on supplemental wages above $1 million
The article states the withholding-side rule, not the employee's final tax liability.
For 2026, employee Social Security is 6.2% up to the $184,500 wage base and Medicare is 1.45% with no wage base limit
Publication 15 reflects the 2026 Social Security wage base and employee FICA rates.
4 claims
FLSA §216(b) can add an equal amount as liquidated damages for unpaid minimum wage or overtime
The article uses "can add" because §260 may allow a court to reduce or deny liquidated damages if the employer proves good faith and reasonable grounds.
§260 requires both good faith and reasonable grounds before a court may reduce or deny FLSA liquidated damages
The article correctly avoids saying voluntary payment alone eliminates liquidated damages.
California §203 can create waiting-time penalties capped at 30 days when final wages are willfully unpaid
The article frames the claim conditionally because §203 depends on willfulness and separation timing.
California §226 can create wage-statement penalties if the original wage statements were inaccurate
The article does not overstate automatic liability; it flags the derivative wage-statement risk.
1 claim
Massachusetts §150 provides treble damages, costs, and attorney fees, and Reuter held late wages are trebled as late wages
Reuter supports the article's warning that late-paid wage amounts can be trebled, not merely interest.
2 claims
Anderson v. Mt. Clemens allows employee proof by just and reasonable inference when employer records are inadequate
The article uses the case to explain why weak records make retro-pay disputes harder for employers.
McLaughlin defines willful FLSA violations as knowing or reckless disregard
The FAQ correctly uses the case to explain the two-year versus three-year FLSA limitations distinction.
1 claim
The calculator is limited to hourly rate-change retro pay with withholding estimates
The article's limitations match the tool: it models rate-change retro pay, optional overtime recompute, federal/FICA/state withholding estimates, but not full bonus allocation, commissions, piece-rate work, penalties, or attorney-fee exposure.
18 unique sources cited across the report — click to audit any claim directly against its evidence.
Every claim above links to the source we used. Open any source to compare the wording here with the underlying rule, guidance, court opinion, or product behavior.
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