Who This Matters To
Many employees in North Carolina are paid by the load, by the route, by the job, or by production rather than by the hour. A recent published decision from the U.S. Court of Appeals for the Fourth Circuit provides a clear explanation of how wage and overtime laws apply to that type of pay structure.
The decision applies throughout North Carolina, including Charlotte, Raleigh, Durham, Greensboro, Winston-Salem, Asheville, and Wilmington.
The case is Figueroa v. Butterball, LLC, decided January 13, 2026.
The Case at a Glance
Osvaldo Figueroa worked as a night-shift turkey loader for Butterball in North Carolina. He filed a wage lawsuit asserting claims under:
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The Fair Labor Standards Act (FLSA), and
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The North Carolina Wage and Hour Act (NCWHA)
He alleged that Butterball failed to pay promised wages and overtime and did not properly explain how he was paid.
The federal district court ruled in Butterball’s favor, and the Fourth Circuit affirmed.
Piece-Rate Pay Is Permitted Under Federal and North Carolina Law
The Fourth Circuit concluded that Figueroa was a piece-rate employee, not an hourly employee.
The court emphasized several familiar factors:
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A signed offer letter stating a per-load rate of pay
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Pay stubs reflecting compensation by “LoadTrip” rather than hourly wages
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Testimony showing that employees understood they were paid by the load
The court reiterated a basic but important point: the FLSA does not require employees to be paid hourly. Employees may lawfully be paid on a piece-rate, salary, commission, or other non-hourly basis, so long as minimum wage and overtime rules are followed.
Why the North Carolina Wage Act Did Not Change the Result
Figueroa attempted to recover unpaid overtime through North Carolina’s wage “payday” statute rather than the FLSA.
The Fourth Circuit explained that this approach does not work when the underlying claim is for federal overtime. Because Congress provided specific remedies under the FLSA, employees may not use state wage statutes as an alternative path to recover the same overtime pay.
The court’s analysis is consistent with long-standing Fourth Circuit precedent and does not represent a change in the law.
How Overtime Is Calculated for Piece-Rate Employees
The opinion provides a detailed walkthrough of how overtime is calculated for piece-rate workers under federal regulations:
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Add all earnings for the workweek
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Divide by total hours worked to determine the “regular rate”
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Pay overtime at one-half of that regular rate for each hour over 40
This method often surprises employees because it differs from the familiar time-and-a-half formula used for hourly workers. The court found that Butterball followed the regulation correctly.
Pre-Shift Work Requires Individual Proof
Some workers testified that they performed pre-shift tasks such as fueling vehicles or preparing equipment before clocking in.
The Fourth Circuit explained that such activities can be compensable if they are integral to the job. However, because Figueroa himself did not present evidence that he regularly performed this work, the claim could not proceed based on testimony from other employees.
This portion of the decision reflects standard wage-and-hour principles rather than a new rule.
What Employees Can Take From This Decision
The Butterball decision does not break new ground, but it offers a clear, consolidated explanation of several recurring wage-and-hour issues:
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Piece-rate pay is lawful under both federal and North Carolina law
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Overtime rules still apply, but they are calculated differently
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State wage statutes do not expand federal overtime remedies
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Claims for unpaid work depend on individualized proof
For employees trying to understand how they are paid—or why overtime may not look the way they expect—this decision is a useful reference point.
Understanding Your Pay Structure
Employees paid by production or job-based systems often receive pay stubs that are difficult to interpret. Courts focus less on labels and more on how pay is actually calculated and documented.
If you have questions about how your wages or overtime are computed, reviewing offer letters, pay stubs, and time records is usually the first step toward clarity.