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Introduction
You work hard for your boss to make money, and you shouldn’t have to chase after the money you earned. In America, most workers depend on the biweekly paycheck to pay rent and care for their families. Living paycheck to paycheck and working hard as much as they can. It is unacceptable when an employer does not pay their worker. It is illegal for an employer to withhold their workers’ income. It is wage theft under both federal and state laws of employment.
Workers often contact me and ask, “My employer didn’t pay me what can I do?” YES, you can sue a company for not paying you. In fact, many employees contact me to learn that they are also owed money for missed rest breaks and lunch breaks. Please call me; I got your back.
What Can an Employee Do If an Employer Is Not Paying Correctly?
An employee can suspect that their employer is not paying correctly if their paycheck does not seem right. Employees cannot assume that their employer is always right when it comes to paying correctly; most employers end up underpaying their employees either by accident or on purpose. Employees could be getting paid less than the minimum wage or be cheated out of other wages or compensations.
Things to look out for include:
- Ensuring your paycheck is correct: One must take a closer look at their paystubs and make sure it looks like the paystub required.
- Ensuring that your work hours are correct: Make sure that you are not only getting paid for all the hours included in your paystub but that all the hours you worked are in fact on the paystub.
- Ensuring the pay rate is correct: When an employer promises an employee an hourly rate, then it must be the one used to pay the employee. The pay rate promised must be at least $7.25 per hour, which is the federal minimum wage. It is also possible that the state you are in has a higher minimum wage requirement.
- Ensuring overtime is compensated: According to federal laws, employers must pay their employees time and a half the regular rate for overtime hours. Overtime pay is required if employees work more than 40 hours in a workweek.
- Ensuring that all deductions are correct: An employer is required to pay all state, federal, and local income taxes on their employees’ behalf, along with Medicare and social security taxes. These are deducted from the employees’ pay, but anything else cannot be deducted from their pay, such as uniform or equipment charges.
Once an employee has determined that their paycheck/paystub is incorrect and that their employer is not paying correctly, there are steps they can take:
- Report to Employer and/or Human Resources: An employee should report the mistakes and incorrect pay right away to their boss or to HR. An employer not paying correctly could be a mistake and an issue that could be easily fixed, and the unpaid wages could be paid for right away or on the next check.
- Keep All Records: It is important for an employee to keep note of all the times in which they arrive and leave work, along with all their break times, travel between work sites, and any prep or clean-up time. Keep note of the promised rate of pay and total hours worked in a workweek. An employee must keep records to prove if their employer is or is not paying correctly.
- Discuss With Coworkers: If an employer is not paying an employee correctly, it is more likely that they are not the only worker being paid incorrectly. It can be helpful to figure out what other workers are being affected by this issue, and it would most likely get the employer’s attention and provide protection if action is taken as a group.
- Discuss with Boss/Employer, or Human Resources: An employee should approach their employer either individually or in a group about them not paying correctly. They must insist on being paid what they are owed in wages.
- Filing a Claim/Complaint: Employees must file a complaint with the Department of Labor’s Wage & Hour Division if their employer refuses to act or respond to their payment concerns. They must make a complaint concerning the wage theft and not being paid correctly their minimum wage or overtime.
- Contact an Employment Lawyer: An employee has every right to sue their employer for not paying correctly and violating state and federal laws on wage and hour. This can be done either individually or in a group of coworkers (class action). These lawsuits can be filed and made easier with the assistance of an employment attorney.
Violations of Minimum & Overtime Pay
Employers who willfully or repeatedly violate the minimum wage or overtime pay requirements are subject to a civil money penalty. Non-exempt employees who work more than the established 40 hours are entitled to overtime pay at one-and-a-half times the normal wage. If you were paid less than the minimum wage, you are entitled to liquidated damages equal to the amount of your lost wages.
Workers have every right to sue employers if they fail to pay them the minimum wage mandated by federal law. The FLSA (Fair Labor Standards Act) sets a minimum wage, and some states mandate an even higher minimum wage.
An employer can also fail to pay correctly by illegally deducting expenses from a worker’s paycheck when the law does not allow them to do so. Hence it is important to keep an eye on deducted money from your paycheck.
A worker can also sue their employer when they do not pay them overtime. If an employee works more than 40 hours in a workweek (7 days), federal and state laws require employers to pay overtime at one and a half times the regular wage. It is important to note that some employees, such as supervisors or managers who receive a salary, are not eligible for overtime.
FLSA laws state that overtime pay cannot be waived by an employer or an employee. Common overtime violations include:
- Misclassifying worker’s job titles
- Falsifying records in timekeeping and working locations
- Mistakes in calculating working hours
- Changing time clock records or undercounting hours worked
Is It Illegal to Work Off the Clock in California?
It is illegal for an employer to ask an employee to work off the clock. In most states, including California, employers cannot require employees to work “off-the-clock” without monetary compensation. Employees can sue employers for requiring them to do work before clocking in or after clocking out. If they are illegally forcing employees to work off the clock, they can also be liable for personal injury claims if employees are injured during such work.
Working off the clock can look like:
- Employers requiring their employees to work through both their rest and lunch breaks.
- Employers expecting their employees to do work or tasks at home.
- Employers requiring employees to still respond to voicemails and emails before and/or after clocking in and out.
- Employers not paying wages for their employees’ training.
- Employers having workers do projects outside of work and labeling it as volunteer work.
Violations in Record-Keeping
An employer can be sued for not paying correctly when they fail to organize and maintain time records (wages, working hours, compensations, etc.) accurately. The U.S. Department of Labor requires that all employers do this. WHD (Wage and Hour Division) posters from the U.S. Department of Labor must be put up in the workplace to inform employees of all the records their employer is required to keep, such as hours worked, total hours per workweek, and the hourly pay rate.
How to Report Wage Theft by an Employer
When an employee files a wage claim against an employer, they cannot be terminated for doing so. Before hiring an employment lawyer, filing a claim, or getting the EEOC (Equal Employment Opportunity Commission) involved, it is important to first try communicating with the employer. An employer might have miscalculated or made a mistake in their records, which could be fixed.
If an employer does not agree on a solution or settlement, the employee should inform the federal agency EEOC or contact the WHD with the U.S. Department of Labor.
My Employer Did Not Pay Me – What Can I Do?
If the employer didn’t pay you, you can hire an employment lawyer or file a complaint and report your unpaid wages to the U.S. Department of Labor’s Wage Division. In California, you can also file a complaint with the Labor Commissioner. Employees can seek monetary damages, including interest pay, back pay, punitive and compensatory damages.
- Interest/Liquidated Damages: Employees can sue for unpaid wages and interests charged or liquidated damages.
- Back Pay Recovery: Employees have the right to recover all unpaid wages.
- Punitive Damages: Employers must face penalties for wage violations. In California, this can include 30 days of waiting time penalties.
- Compensatory Damages: Compensatory damages cover the distress experienced due to wage theft.
By understanding and taking these steps, employees can protect themselves against wage theft and secure the compensation they deserve.