Many hourly employees earn more than a base wage. Bonuses, commissions and stock awards can all be part of the deal, and under federal overtime law those extras can change what you are owed for every hour over 40. A long-running class action against Apple shows how much money can ride on that question.
What the Apple lawsuit alleges
Hourly, non-exempt Apple employees in California and New York sued over how their overtime was calculated. They argue Apple left the value of vested restricted stock units (RSUs) out of the “regular rate of pay,” so overtime was paid at a lower rate than the law requires. The claims arise under the Fair Labor Standards Act (FLSA) and California and New York wage laws. The court certified classes of current and former employees in both states, and thousands of workers joined the federal collective action.
Why the regular rate matters
The FLSA requires employers to pay non-exempt employees at least one and one-half times their regular rate for hours worked over 40 in a workweek. The regular rate generally includes all pay for employment, such as nondiscretionary bonuses, commissions, shift differentials and incentive pay, unless a specific statutory exclusion applies. Underpaying the regular rate shorts every overtime hour, and the unpaid overtime adds up quickly.
Where the case stands
On June 11, 2026, in Costa v. Apple Inc. in the Northern District of California, the court granted summary judgment to Apple. It held that vested restricted stock units (RSUs) fall within the FLSA’s equity exception, so their value did not have to be included in the regular rate used to calculate overtime, and it reached the same result in the alternative under the gift exception. The court also indicated that a two-year limitations period applied and that liquidated damages were not warranted. Earlier in the case, classes had been certified for California and New York workers. The ruling is fact-intensive and may be appealed, so it is not the last word on stock awards and overtime. The video says Apple “is being sued”; that was accurate before the ruling, but the court has now decided the summary judgment motion in Apple’s favor.
What employees can do
- Check whether your pay stubs show bonuses, commissions or stock awards, and whether your overtime rate reflects them.
- Keep records of your hours and every form of compensation.
- Act promptly. FLSA claims generally must be filed within two years, or three years for willful violations.
If you think your overtime rate was calculated incorrectly, an overtime lawyer can review your pay records and explain your options.
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This article is general information, not legal advice. Every case depends on its own facts, so talk to an employment lawyer about your situation.
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