Your Guide to Unpaid Wages and Wage Theft

Wage theft is a widespread issue affecting workers across various industries, often leaving employees unpaid for the hours they have worked. Whether through withheld wages, unpaid overtime, or misclassification, wage theft can have serious financial consequences.

Understanding your rights and knowing how to recover unpaid wages is essential for protecting yourself from unfair labor practices. So with that in mind, here is a guide on how to take action if you have been a victim of wage theft.

What Is Wage Theft?

Wage theft is a challenging occurrence that happens when an employer fails to pay workers according to federal, state, or local wage laws. Common forms of wage theft include:

• Unpaid Overtime: Businesses must pay eligible employees overtime for any hours worked beyond 40 in a workweek, typically at 1.5 times the regular rate of pay.
• Minimum Wage Violations: Paying employees below the legally mandated minimum wage, whether at the federal or state level.
• Off-the-Clock Work: Requiring employees to perform job duties before they clock in or after clock out without compensation.
• Illegal Deductions: Deducting wages for uniforms, equipment, or other expenses in ways that bring pay below minimum wage.
• Misclassification of Workers: Falsely classifying employees as independent contractors to avoid paying benefits or overtime.
• Withholding Final Paychecks: Failing to pay employees all earned wages after termination or resignation.

Some industries, such as construction, food service, and retail, are particularly vulnerable to wage theft due to high turnover rates and complex pay structures. However, wage theft can happen in any workplace, and all employees—regardless of industry or job type—deserve fair compensation for their work.

How to Identify Wage Theft

Workers may not always realize they are victims of wage theft. If you suspect your employer is, as a mistake or not, violating wage laws, look for these warning signs:

• Paychecks that do not reflect all hours worked, including overtime
• Unexplained deductions from your wages
• Being asked to work off the clock
• Receiving a salary when your job duties require hourly pay and overtime eligibility
• Delays in receiving your paycheck or bounced payroll checks

If any of these apply to you, you may have a valid wage theft claim. Employees in Colorado, for example, can learn more about their rights and legal options by searching up wage theft in Colorado.

Steps to Recover Unpaid Wages

If you believe you have been denied wages, follow these steps to protect your rights:

1. Review Your Pay Records: Check pay stubs, timesheets, and employment agreements to identify discrepancies.
2. Keep Detailed Records: Document your hours worked, including overtime and any unpaid time.
3. Communicate with Your Employer: In some cases, a payroll error may be unintentional. Raise the issue with your employer in writing.
4. File a Wage Claim: If your employer does not resolve the issue professioanlly, you can file a claim with the U.S. Department of Labor or your state’s labor department.
5. Consult an Employment Lawyer: If your claim is denied or ignored, legal action may be necessary to recover your unpaid wages.

Know Your Rights

Employees are protected by federal and state wage laws, including the Fair Labor Standards Act (FLSA). Additionally, many states have their own laws with stronger protections for workers.

Some states have stricter wage theft laws, including higher penalties for non-compliant employers and faster resolution processes for workers. If you suspect wage theft, taking action quickly is important, as legal claims often have strict deadlines.

By understanding your rights and the legal options that are available to you, you can take steps to recover unpaid wages and prevent future violations. Seeking legal assistance can also provide clarity on your specific situation and the best course of action to ensure you receive the wages you are owed.