NJ Workers Are Owed $5.7 Billion In ‘Unpaid Overtime,’ Study Says

NEW JERSEY — Feel like you're earning less – despite working longer hours – when compared to your parents? It might be true, a recent study says.

According to a study done by law firm Bisnar Chase, the average New Jersey employee in the private sector worked about 2.6 hours of “unpaid overtime” per week during 2022. It was higher than the national average of 2.1 hours.

When this figure is applied to the number of exempt workers in the Garden State (and based on the median wage), and then annualized, New Jersey workers are collectively owed about $5.73 billion in backpay, researchers said.

What is “unpaid overtime?” Here’s the explanation – and the problem, Bisnar Chase said:

“Average hourly wages, adjusted for inflation, have declined since the 1970s, while the average number of hours worked has increased. As a result, American workers are facing underpayment, overwork and stress. One of the reasons for this is the decrease in overtime pay … Overtime pay may not be a familiar term to many younger generations, but in the past, it was a staple for middle-class workers. Nowadays, a significant portion of employees work over 40 hours a week without receiving any overtime compensation. Despite laws that protect the right to overtime pay, those earning above $35,000 per year are often misclassified into exempt positions that do not qualify for overtime. This creates a large pool of free labor for employers to exploit, leading to increased profits, declining real wages and a widening income gap.”

The worst state in America when it comes to “working for free?” Maryland, according to researchers, who said the average employee there worked 3.5 hours in unpaid overtime per week in 2022. The best state? South Dakota, where that total came to 0.3 hours.

The survey of 3,000 responses was taken in February. The number of workers per state used in the calculations include only those who are exempt from receiving overtime. Median wage was used to calculate the average hourly rate. The overtime figure per person is hourly rate multiplied by average overtime worked per year. The final figure is the number of exempt workers multiplied by owed overtime per person in 2022.

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