Wage theft occurs when employers fail to pay workers the full wages they've earned through illegal practices like unpaid overtime, minimum wage violations, off-the-clock work, and misclassification. Billions of dollars are stolen from workers annually through these practices, but legal remedies exist to recover unpaid wages and hold employers accountable for their violations.
Common Forms of Wage Theft
Wage theft takes many forms beyond simply not issuing paychecks. Failure to pay overtime rates for hours exceeding 40 per week affects millions of workers. Minimum wage violations pay workers less than legally required hourly rates. Off-the-clock work requires employees to perform duties before or after shifts without compensation. Illegal deductions reduce pay below legal minimums for items employers should cover.
Misclassification represents another major wage theft category, where employers incorrectly classify employees as exempt from overtime or as independent contractors to avoid paying proper wages and benefits. These classification schemes allow employers to underpay while placing tax and benefit burdens on workers.
Legal Protections for Workers
The Fair Labor Standards Act establishes federal minimum wage and overtime requirements applicable to most workers. State wage laws often provide stronger protections with higher minimum wages, daily overtime requirements, and broader coverage. Both federal and state laws allow workers to sue employers for unpaid wages and additional damages.
Liquidated damages may double unpaid wage awards under the FLSA when employers violated the law willfully or without good faith. State laws may provide additional penalties, interest, and attorney fee awards. These enhanced damages incentivize employer compliance and compensate workers for the difficulty of recovering what they're owed.
Pursuing Your Unpaid Wage Claim
Workers can pursue wage claims through administrative complaints with the Department of Labor or state labor agencies, or through private lawsuits. Administrative complaints may result in agency investigation and enforcement at no cost to workers, though outcomes depend on agency resources and priorities. Private lawsuits allow workers to control their cases and often achieve greater recoveries.
Class and collective actions combine claims of multiple workers affected by the same illegal practices. These cases efficiently address widespread violations while providing resources for thorough litigation. Individual recovery in class actions may be less than private suits but allows pursuit of claims that would be uneconomical individually.
Evidence Gathering
Documenting your hours worked and wages paid strengthens wage claims substantially. Keep personal records of time worked, pay received, and any communications about work schedules or compensation. Paycheck stubs, timesheets, and written policies provide essential evidence. If employer records are inaccurate or unavailable, your credible testimony about hours worked can establish your claim.
Statutes of limitations limit how far back you can recover wages, typically two to three years under federal law with longer periods for willful violations or under some state laws. Filing promptly preserves claims for the maximum recovery period.
Retaliation Protections
Laws prohibit employers from retaliating against workers who complain about wage violations or file claims. Termination, demotion, schedule changes, or other adverse actions following wage complaints may constitute illegal retaliation, creating additional claims and damages. These protections encourage workers to assert their rights without fear of job loss.