Most people are in the workforce because they need a paycheck. Even then, it can be hard to make ends meet with costs continuing to rise.
It can be difficult to fathom that the company paying you for your time is also stealing from you. However, wage theft is far more common than most people realize and affects workers in every industry.
Common examples of wage theft
Wage theft happens when an employer fails to pay their employee the full wages they are entitled to receive. It can happen either accidentally or intentionally, but either way, it violates federal and state labor laws. Wage theft is a massive problem in the United States, costing workers $50 billion annually.
There is a wide range of practices that qualify as wage theft. These include:
- Unpaid or underpaid overtime: Hourly employees who work more than 40 hours in a workweek are generally entitled to overtime pay at 1.5 times their regular rate. Overtime is costly to the employer, so some look for ways to avoid paying extra, such as miscalculating their hours, claiming the overtime wasn’t authorized or only paying the employee their regular hourly wage for the additional hours.
- Paying below minimum wage: Employers have ways of avoiding paying their employees the minimum wage. They may do it by requiring employees to buy uniforms or making illegal deductions from the employee’s paycheck for breakage or drawer shortages.
- Off-the-clock work: Setting up equipment, attending a mandatory meeting on a day off, or cleaning up at the end of a shift are tasks that the employee must be compensated for. Employers can’t require workers to volunteer their time or work through breaks without pay.
- Misclassification: Labeling workers as independent contractors instead of employees strips them of certain wage protections, including minimum wage, paid time off and overtime pay. If your employer controls when, where and how you work, then you may legally be an employee and should be classified as such.
Employers rely on many of their employees not knowing their rights or fearing retaliation for speaking up. However, the law protects workers who report wage theft. If you suspect wage theft, it’s crucial to start documenting everything. An experienced legal professional can evaluate your claim and recommend the best course of action. After all, you deserve a fair wage for every hour you work.