Wage theft occurs when employees are not fully paid as required by law or contract. It includes unpaid overtime, withheld tips, misclassification to avoid benefits, and illegal paycheck deductions. These practices breach workers’ rights, violate the Fair Labor Standards Act, and can cause financial problems for those affected.
Wage theft is expressly prohibited under the Fair Labor Standards Act (FLSA), which is overseen by the U.S. Department of Labor and establishes wage and hour regulations for the majority of employees. The FLSA sets the federal minimum wage, overtime compensation, and recordkeeping obligations, applying to the vast majority of workers in both private and public employment.
Employees who have been subjected to wage theft have several avenues for recourse to recover unpaid wages and pursue applicable penalties. Individuals may exercise their private right of action by initiating a civil lawsuit against their employer. Additionally, affected employees may file a complaint with the U.S. Department of Labor for violations of FLSA. The Department of Labor may subsequently conduct an investigation, facilitate mediation, and mandate that the employer pay any outstanding back wages.
Individuals can also sue their employer in court. If they win, employees may receive back pay, liquidated damages, attorney’s fees, court costs, and possible state penalties. Under the FLSA, willful violations allow employees to recover double the unpaid wages.
It is important to be aware of the applicable deadlines for taking action. Under the FLSA, employees generally have two years to file lawsuits—three years in cases involving willful violations—to safeguard their rights. If these deadlines lapse, the opportunity to recover unpaid wages may no longer be available to you.
Understanding these standards is crucial, especially during the holidays when wage disputes can become more prevalent. Employees should familiarize themselves with their rights under the FLSA, including how to identify wage theft and the steps to take if they suspect violations. For further guidance on wage and hour laws, employees can visit resources such as the U.S. Department of Labor’s FLSA overview and Workplace Fairness on wage theft. These sites provide practical information on documentation, complaint procedures, and how to recover unpaid wages, helping workers safeguard their earnings during the holiday season and beyond.
If you believe your employer owes you unpaid wages, Rob Wiley, P.C., is dedicated to representing employees whose rights under the FLSA have been violated. Please contact us to discuss your available options.