Wage Theft in Healthcare: Are You a Nurse or Traveling Medical Professional With Unpaid Overtime?

Healthcare workers have long been praised for their commitment and resilience. Yet, despite working under demanding and often hazardous conditions, some were denied fair pay for the hours they put in.

One of the most persistent and overlooked injustices in the healthcare industry is wage theft, particularly in the form of unpaid overtime.

For full-time nurses, hospital techs, home health aides, and traveling nurses, wage theft has become an alarmingly common experience. 

These are professionals who regularly work long, irregular hours under intense pressure, often without receiving the overtime pay they are legally owed. When employers cut corners at the expense of workers, it’s not just unethical—it’s illegal.

At Morgan & Morgan, we stand For the People, including the healthcare workers who care for us when we need them most. If you are owed pay for your hard work, contact us today for a free case evaluation to learn more about your legal options.

What Is Wage Theft?

Wage theft occurs when employers fail to pay workers all the wages they are legally entitled to. 

Common forms of wage theft include:

• Not paying overtime
• Paying below minimum wage
• Requiring off-the-clock work
• Misclassifying employees as exempt or as independent contractors
• Deducting illegal expenses from paychecks

While wage theft can happen in any industry, it is particularly rampant in healthcare, where shift work, long hours, and vague employment agreements often blur the lines of legal compensation.

Why Healthcare Workers Are Especially Vulnerable

Healthcare professionals, particularly nurses, are often overworked and underprotected. Here are a few reasons they’re uniquely at risk:

Long, Irregular Hours

Nurses and aides frequently work 12-hour shifts that often stretch longer. Overtime can easily accumulate, yet hospitals or staffing agencies may fail to pay properly for time worked beyond 40 hours per week.

“Off-the-Clock” Work

Tasks like charting, prepping medications, or handing off patients may be performed outside scheduled hours. If these tasks aren’t logged or paid for, it’s wage theft.

Misclassification

Travel nurses and contract healthcare professionals are sometimes misclassified as independent contractors, which allows employers to skirt wage laws, including those that require overtime pay and benefits.

Retaliation and Intimidation

Some healthcare workers fear retaliation for speaking up, such as being blacklisted by staffing agencies, getting reduced shifts, or being passed over for assignments.

Lack of Transparency in Pay Structures

Especially for traveling nurses, confusing and fragmented pay arrangements (including per diem stipends and mileage reimbursements) make it hard to understand when they’re being shorted.

Traveling Nurses: A Closer Look at Wage Exploitation

Travel nurses are registered nurses who work temporary contracts, often across state lines, to fill staffing shortages. While they can earn lucrative wages, they are not immune to wage theft. In fact, their working conditions often create more opportunities for abuse.

Common wage theft scenarios for travel nurses can include:

• Unpaid Overtime: Many travel contracts pay a flat hourly rate but don’t compensate for time worked beyond 40 hours per week.
• Missing Meal or Break Premiums: If a nurse is required to skip breaks or eat on the go, they may be owed extra pay.
• Improper Deductions: Some staffing agencies deduct costs for housing or travel expenses that should be reimbursed under labor law.
• Fake “Exempt” Status: Nurses are sometimes wrongly classified as exempt from overtime under the Fair Labor Standards Act (FLSA), despite performing duties that clearly qualify for overtime.

According to multiple lawsuits and investigations, some major staffing agencies have developed systems to underpay or delay proper compensation under the guise of complex contracting arrangements.

The Legal Standards: What the Law Says

Healthcare workers are generally protected under the Fair Labor Standards Act (FLSA) and relevant state wage laws. Here’s what those laws require:

Federal Law

• Overtime Pay: Non-exempt workers must receive 1.5x their regular pay for any hours worked over 40 in a week.
• Breaks: If breaks are too short (less than 20 minutes) or workers are required to remain “on duty,” those periods must be compensated.
• Record-Keeping: Employers are required to track and maintain accurate records of employee work hours.
  
   

State Laws

Some states offer even stronger protections. For example, in California, nurses are entitled to daily overtime (after 8 hours in a day) and meal/rest break premiums.

In New York, employers must provide detailed wage statements, and “spread of hours” pay may apply in certain situations. Massachusetts and Washington have robust employee classification rules and penalties for wage violations.

 

Signs That You May Be a Victim of Wage Theft

If you’re a healthcare worker and suspect something’s not right with your pay, here are some red flags:

• You’re not paid for hours before or after your shift (like prep time or charting).
• You’re routinely asked to work through breaks without pay.
• You’re told you’re exempt from overtime without explanation.
• You never see a breakdown of your hourly vs. overtime pay on your paystub.
• You’re a travel nurse but not receiving time-and-a-half after 40 hours in a week.
• You feel pressured not to report extra hours or told to “fix” your timesheet.

If any of these sound familiar, you may be entitled to compensation.

What Compensation Can Include

If you’ve been a victim of wage theft, the law may entitle you to more than just the unpaid wages. Depending on your case, you may be eligible for:

• Back Pay: The full amount of unpaid overtime or off-the-clock work.
• Liquidated Damages: Often equal to the amount of unpaid wages.
• Interest on Unpaid Wages
• Attorneys’ Fees and Legal Costs
• Injunctive Relief: Changes to the employer’s wage practices

In some cases, courts have awarded double damages, especially when the employer’s conduct was willful.

Morgan & Morgan Can Help

Wage theft, especially unpaid overtime, is a silent epidemic in the healthcare industry. From local hospitals to national staffing firms, too many employers are putting profits ahead of the people who power their institutions.

But the law is on your side. And so are we.

When healthcare workers are denied fair wages, the impact goes far beyond the paycheck. It affects mental health, morale, and even patient care. At Morgan & Morgan, we believe every nurse, aide, and healthcare technician deserves the respect and compensation they’ve earned.

We’ve recovered billions of dollars for workers across the country, and we may be able to help you, too.

At Morgan & Morgan, we’ve handled hundreds of wage and hour lawsuits, and we understand the unique pressures that healthcare workers face. Our attorneys are experienced in going up against large hospital systems, staffing agencies, and corporations to fight for what our clients are owed.

Our firm operates on a contingency fee basis, which means you don’t pay unless we win. Hiring one of our lawyers is easy, and you can get started in minutes with a free case evaluation.