By Amanda Biondolino
Founder
Founder
Wage theft happens when workers are not paid fairly for all hours worked. Federal and state wage laws require employers to pay employees for every hour they work, including overtime, and to comply with minimum wage laws. Wage theft is one of the most common forms of workplace abuse, and it can happen in subtle, hard-to-spot ways.
Wage theft includes:
- Paying less than the minimum wage
- Failing to pay overtime when required
- Refusing to pay for all hours worked
- Making employees work during rest or meal breaks
- Misclassifying employees to avoid paying wages
- Taking unlawful deductions from a worker’s paycheck
While some cases of wage theft are obvious, others are much more subtle. Here are some common tactics:
- Unpaid “Off-the-Clock” Work – Employers may ask workers to set up, clean up, or finish tasks before clocking in or after clocking out. For example, a restaurant server might be told to roll silverware, set tables, or complete other side work after clocking out; workers may be required to change into uniforms, safety gear, or protective equipment before their shift starts; or nurses or aides may be expected to finish charting, update patient notes, or pass on information to the next shift after clocking out, leaving them unpaid for essential job duties.
- Misclassifying Employees as “Independent Contractors” or as “Salaried/Exempt” – By labeling workers as independent contractors instead of employees, employers avoid paying overtime, payroll taxes, and benefits. Some employers classify workers as salaried or exempt from overtime even though their job duties or pay do not meet the legal requirements for an exception to the overtime rule. Employees are often surprised to learn that being salaried does not automatically mean they are not entitled to overtime pay.
- Improper Overtime Practices – Employers sometimes fail to pay overtime by averaging hours over two weeks instead of one, adjusting time records, or paying the wrong overtime rate.
- Illegal Deductions – Some employers deduct money from paychecks for uniforms, broken equipment, or cash register shortages. If these deductions reduce pay below minimum wage, it is unlawful, and permitted deductions must be for a fair (not inflated) amount.
- Allowing Workers to Work Through Breaks – Employers may interrupt meal or rest breaks, or allow workers to keep working even though they are clocked out, leaving workers unpaid for hours they actually worked.
- Rounding Time in the Employer’s Favor – Time clocks that always round down can result in stolen wages over time. Rounding must be done in a way that is neutral and cannot consistently favor the employer.
Studies show that U.S. workers lose billions each year to unpaid wages. For many employees, even small amounts of unpaid time can add up to significant losses over months or years.
If you suspect you are not being paid fairly:
- Keep detailed records of your hours, breaks, and paychecks.
- Review your pay stubs for missing overtime, unexplained deductions, or inconsistent hours.
- Seek legal help from an experienced employment lawyer who can evaluate your situation and help recover stolen wages. Contact us here to schedule a consultation.
