Lost time payment
A lost time payment compensates you for hours spent dealing with the problem in a case, often at a set hourly rate up to a cap.
Also called: lost time compensation, compensation for time spent, time spent payment
A lost time payment compensates you for hours spent dealing with the problem in a case, often at a set hourly rate up to a cap.
What it means
A lost time payment is money a settlement pays for the time you spent dealing with the problem it covers. In a data breach settlement, that might be time spent checking accounts, calling your bank, placing a credit freeze or disputing fraud. The settlement sets a rate per hour and a limit on how many hours you can claim.
The proof required differs. Some settlements let you claim a few hours by stating that you spent the time, with no documents. Others want a short description of what you did, and ask for records to claim more hours. The notice says which.
Lost time is often a separate category from out-of-pocket losses, and both may fall under one overall cap. Rates and limits are different in every settlement, so read the notice for the hourly rate, the maximum hours and any event the time must relate to.
What it means for you
Lost time is the easiest category to miss because there is usually no receipt. If you spent time cleaning up after the problem, claim it, but be honest and specific: note what you did, roughly when and for how long. Claim only the hours the notice allows. The payment per hour may be modest, but it can add up, and many settlements let you claim it along with out-of-pocket losses. Check the notice to see how the two fit together.
Example
Say a settlement pays $20 per hour for up to four hours of time spent responding to a breach, within a $300 cap on all claimed losses. You spent about three hours changing passwords, checking statements and calling your bank. You claim three hours, or $60, and list those tasks on the form.
FAQ
Each settlement sets its own rate and cap, so there is no standard number. The notice lists the hourly rate, if there is one, and the maximum number of hours or dollars you can claim.
Not always. Some settlements accept your statement, made under penalty of perjury, for a few hours. Claiming more hours often requires a description or documents showing what you did.
Related terms
- FTC, Equifax Data Breach Settlement page (example of out-of-pocket and time-spent payments)
- Federal Rule of Civil Procedure 23 and committee notes (Cornell LII)
- Federal Judicial Center, Judges' Class Action Notice and Claims Process Checklist and Plain Language Guide (2010)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.