4 Common Forms Of Wage Theft

There are many kinds of wage theft. According to reports, there are millions of cases of wage theft that occurs across the country every year. While sometimes wage theft is more apparent than others, there are situations in which wage theft is not as obvious. 

The four common forms of wage theft include, getting paid less than minimum wage, not receiving overtime, not receiving meal breaks and paycheck reductions.

You do have resources available to help you if you are a wage theft victim. Here are the details about the four most common forms of wage theft.

Getting Paid Less Than Minimum Wage

Federal law sets minimum wage at $7.25 per hour. There are several states and cities across the U.S. that have set higher minimum wage rates. The least you can be paid is federal minimum wage. If your state or city has a higher rate, then you must be paid that amount.

If you are paid less than minimum wage, then you are a wage theft victim. You should carefully review your paystubs and make sure that you are paid at least that amount.

If you notice a discrepancy, then report it right away so it can be addressed. Your company’s human resources (HR) department should be able to help you and should be able to determine if your pay is correct or if there is an issue.

Not Receiving Overtime

Some employers are legally required to pay overtime if their employees work overtime. In most cases, non-exempt employees are entitled to overtime for any hours worked past 40 hours per week.

In some states, overtime must be paid if a worker works more than a set number of hours per day. It could be if the individual works more than 8 hours per day, or if a worker exceeds 10 hours per day, so check your state laws.

Sometimes employers misclassify employees so they can avoid paying overtime. If you suspect that you are not being paid overtime that you are entitled to receive, you should inquire about the situation.

You want to address the issue early on before the problem worsens and before it is too late to pursue a claim against your employer for wage theft.

You should stay current on any laws regarding minimum wage in your state or city, as they could vary from federal laws.

Meal Breaks

Some employers are required to pay employees for meal breaks while others are not required to do so. But, if you find yourself working during your meal break, such as answering phone calls, responding to emails, or assisting customers, you could be a victim of wage theft if you are not being paid for that time.
 

You need to keep track of your time and make sure that you have a meal break without work-related interruptions. If you are required to work through your break, you should be paid for that time.

Paycheck Deductions

There are limitations as to what can be deducted from your paycheck. When deductions are taken from your paycheck, such as the cost of tools and uniforms, employers are limited as to the amount they can deduct.

They cannot take out too much, so that your earnings fall below minimum wage.

State laws regarding deductions also vary. Employers cannot make any unauthorized or illegal deductions from employee pay. As an example, check to see if you are being charged for required dorm living, or electricity that is required to do your job. If you have questions or concerns about any deductions, be sure to address them quickly.

Next Steps

If you have been the victim of wage theft, you should act promptly. You do have limited time to pursue a wage theft claim against your employer. Always check your paystubs and review your documentation to make sure you are being paid all your earnings.

If you notice a discrepancy, talk with your employer’s human resources (HR) department right away. They should look into the matter.

Be sure to maintain documentation and evidence to support your claim. If you think you have suffered wage theft, have your employer review the details of your claim and determine the best way to proceed with a wage theft case against your employer.

Additional Resources