Wage theft occurs when an employer fails to pay workers the full wages they have earned. This can happen in many forms and affects workers in all industries.
Understanding wage theft and identifying it can help workers recover the wages they deserve.
Defining wage theft
Wage theft refers to various illegal practices where employers deny workers their rightful compensation. It includes any action that cheats workers out of their agreed-upon wages. This can involve not paying overtime, denying breaks, paying below the minimum wage or taking unauthorized deductions from paychecks. Wage theft can also include classifying workers incorrectly as independent contractors to avoid paying benefits or full wages.
Common examples of wage theft
One common form of wage theft is unpaid overtime. Employees who work over 40 hours a week are often entitled to overtime pay, usually at a rate of time and a half. If an employer avoids paying this rate, it qualifies as wage theft.
Another example involves minimum wage violations. Employers who pay less than the federal or state minimum wage are committing wage theft. This often happens in jobs where workers rely on tips, such as in the restaurant industry.
Demanding off-the-clock work is also a form of wage theft. This occurs when employers require workers to perform tasks before clocking in or after clocking out. It also includes situations where employers ask workers to take work home without compensation.
How to tell if you have a case against your employer
To determine if you have a case, start by reviewing your pay stubs and hours worked. Compare your earnings to your expected wages, including overtime. Ensure you receive at least the minimum wage for all hours worked. If your employer makes deductions from your paycheck, verify that these deductions are legal and authorized. Keep track of all hours worked, even those outside of scheduled shifts.
If you find discrepancies, you may have experienced wage theft. Talking to other employees about their experiences can also reveal patterns of wage theft within your workplace. Knowing your rights and staying informed about wage laws can help you identify wage theft and take the necessary steps to recover lost wages.