You know your time is valuable, and you expect to get paid for the hours you invest into your job. Five or 10 years ago, employees generally felt like their compensation was worth the effort they committed to their work. But there are exceptions to the case, and many of them fall under the term “wage theft.” Is your employer really paying you fairly? Are you working more hours that somehow don’t count on your paycheck? Have you been told that there are stipulations that prevent you from getting tips? Then you may be a victim of wage theft. Here’s what you need to know.
What Is Wage Theft?
Wage theft is the practice of an employer withholding money from an employee to raise their own profitability. This can be done in many ways, including not paying overtime, denying tips and classifying an employee as an independent contractor.
It’s not a rare occurrence, either. Wage theft costs American workers $50 billion annually, but most don’t know how to recognize it or what to do about it.
Signs Your Wages Are Being Stolen
If you work more than you’re paid to, then this is the clearest sign your employer is conducting wage theft. Employees are legally entitled to overtime over 40 hours a week under the Fair Labor Standards Act (FLSA). There are some exemptions, but in most cases, a contracted employee should be paid time-and-a-half if they are working more than full-time.
Some companies will have their own “overtime policies” that withhold wages by claiming the work has to be a new project in order to count as additional labor. Don’t fall for these tactics; research local and federal employment laws, so you can defend yourself and your right to fair compensation.
Are You Paid Less Than Minimum Wage?
It’s a crime to pay anyone less than the legal minimum wage in their state, so if you’re being under-compensated or paid with “perks,” then you could report your employer for committing wage theft.
For compensation-based employees, like waiters, the minimum is usually lower, but they must receive tips to reach the federal minimum rate. While the federal minimum wage is $7.25 per hour, most states have minimum wages set higher than that. For example, minimum wage in California is $16.50, with some industries having a higher mandated rate of $20 or more.
Not Getting Paid for Meal Breaks
Employment laws entitle workers to unpaid breaks after they work a certain amount, which is usually six hours. If your employer denies you breaks by letting you “eat at your desk,” then you could sue for wage theft. Any type of work that takes place during your meal counts as labor and should be paid.
How Do I File a Complaint?
The Wage and Hour Division of the federal Department of Labor handles wage theft reports. You may also be able to file a report with your state’s Department of Labor. It can be helpful to reach out to a local employment lawyer and speak with them during a free consultation. They can help you understand your rights, know the law and take the right steps to get the compensation you deserve.