Wage theft is a lot more common than people think. It costs workers billions of dollars every year. Employers often get away with wage theft because it’s tough to spot and sometimes workers feel pressured to not speak up about it so that they don’t lose their jobs. But wage theft is illegal, and you can report wage theft to your state, or local authorities and to the U.S. Department of Labor.
What Are Examples of Wage Theft?
Wage theft is any situation where you should be getting paid for your work and aren’t. Wage theft can take many forms and it can in some cases look like your employer just asking for a favor. The most common types of wage theft are:
Not getting paid for overtime
Your employer must pay you overtime wages for any time that you work that is over 40 hours in a consecutive seven-day period. It doesn’t matter if your boss divides up the time or has you work a staggered schedule. Legally you are entitled to overtime pay for any work that you do past 40 hours in one week.
Employee misclassification
Any employee of a business gets certain protections and benefits just for being an employee. For example, employees are covered by worker’s compensation rules so if they get hurt on the job they are protected. When employers misclassify their employees as independent contractors to get out of providing those protections that’s wage theft.
Minimum wage violations
All employers must pay at least minimum wage. They must pay the minimum wage that is higher if the state and federal minimum wage are different. So, if your state has a lower minimum wage than the federal minimum wage your employer must pay you federal minimum wage.
Working off the clock
An employer can’t ask you to work through a lunch break, come in on your day off, or work a weekend without pay. You are entitled to be paid for any time that you work.
Illegal deductions from pay
If you have deductions taken from your paycheck for meals, lodging, uniforms, or other expenses that total of the deductions cannot legally cause your pay to dip below minimum wage.
Not being paid at all
Some employers try to avoid paying employees when they are doing tasks related to work like driving between job sites or running an errand for the employer, but you are entitled to be paid for that time.
Next Steps to Take
Wage theft is illegal. You are entitled to file a complaint against your employer at both the state and Federal level.
How to File a Complaint for Wage Theft
You can file a complaint with the U.S. Department of Labor’s Wage and Hour Division by going on the USDL’s website or calling the office on the phone. Your complaint can be confidential. You can file a complaint even if you are undocumented.
- Your name
- Your address and phone number (how you can be contacted)
- The name of the company where you work(ed)
- Location of the company (this maybe different from where you worked)
- Phone number of the company
- Manager or owners name
- Type of work you did
- How and when you were paid (i.e., cash or check, every Friday)
You should also include supporting documents like pay stubs or work schedules if you can. It is illegal for your boss to punish you, fire you, or retaliate against you for filing a complaint.
You have options at a state level too. You can file a complaint with the South Carolina Department of Labor, Licensing and Regulation. The LLR will then determine if there is a violation of the wage-and-hours laws and issue a notice to your employer if necessary.
Remedies for Wage Theft
If your employer is found to be in violation of the law they can face penalties and fines up to $10,000. You may receive a lump sum of money to compensate you for your lost wages.
Helpful Links:
https://www.epi.org/publication/employers-steal-billions-from-workers-paychecks-each-year/
https://www.employmentlawhelp.org/wage-theft/what-is-wage-theft
https://www.dol.gov/agencies/whd/contact/complaints
https://www.dol.gov/agencies/whd/contact/complaints/information
https://www.employmentlawhelp.org/wage-theft/remedies-for-wage-theft