Getting paid fairly and on time is not just an expectation; it is a legal right. Unfortunately, many workers experience unpaid wages without realizing it. Whether it is missing overtime pay, withheld tips, or not receiving the agreed-upon salary, recognizing the signs of wage theft is the first step toward protecting yourself.
What Counts as Unpaid Wages
Unpaid wages happen when an employer does not pay an employee the full amount they are legally entitled to receive for performing work. This may occur in a variety of ways, such as:
- Not paying for all hours worked, including before or after scheduled shifts
- Withholding lawfully required overtime pay
- Bonuses, commissions, or promised incentives are withheld
- Making illegal deductions from wages
- Not paying minimum wage
- Nonpayment for unused accrued vacation or sick time (where required by law)
The United States Department of Labor (DOL) discovered that wage theft is one of the most common labor violations, with billions of dollars in wages lost each year by workers who are not paid in full.
Common Red Flags That You Are Owed Money
Unpaid wages can be easy to recognize, like when a paycheck never comes. But sometimes the signs are more subtle. You may be experiencing unpaid wages if:
- Your wages are always less than the hours worked.
- You are told to work “off the clock.”
- Overtime hours are not paid at time-and-a-half as required by federal law.
- You are wrongly labeled as an independent contractor when, in fact, you are an employee.
- You survive on tips, but your hourly rate of pay is below minimum wage after tips are included.
Wage theft particularly targets low-wage and hourly workers and employees in retail, service industry, construction, healthcare and temporary/seasonal employees are more vulnerable to wage theft.
Steps to Take if You Suspect Wage Theft
If you think your employer owes you unpaid wages, you can take the following steps to safeguard your rights:
- Keep Your Own Pay Records: Keep your own records of hours worked, tips earned, and overtime. Compare them with your pay stubs.
- Bring It Up Internally: Sometimes, payroll errors are accidental. Bring the problem to your HR department or manager first.
- Know the Law: Minimum wage and overtime compensation are required by federal law under the Fair Labor Standards Act (FLSA) for covered employees. A number of states offer additional protections.
- File a Complaint: If your employer does not take action to resolve the issue, you may file a complaint with the Wage and Hour Division of the U.S. Department of Labor.
- Seek Legal Help: Employment lawyers can help you receive your unpaid wages and protect your rights.
Why Identifying Unpaid Wages Is Important
Unpaid wages hurt more than the individual worker. They lead to an uneven labor market, in which companies that violate the law have the upper hand over companies that play by the rules. Enforcing wage theft enforces fairness, encourages accountability, and serves to safeguard the general workforce. By identifying wage theft sooner and doing something about it, workers not only guard their own paychecks but also work towards a more even and equitable workplace.
In conclusion, all workers are entitled to fair pay for their time and labor. Unpaid wages, whether they are the product of unpaid overtime, off-the-clock labor, or illegal paycheck deductions, constitute a severe infringement on employee rights. Identifying the red flags and taking the appropriate actions to resolve the issue gives workers the power to reclaim pay that is rightfully theirs. Familiarity with labor laws and knowledge of where to find help can make all the difference. Getting back lost pay is about more than regaining lost income; it is about standing up for fairness, dignity, and respect in the workplace.
