Wage Theft: What Is It and What Can Employees Do?

Have you been a victim of wage theft? Many employees suffer this type of abuse by an employer but may not even be aware of it. And they may have no idea what to do about it if they are aware. What is wage theft? And how can you ensure that you get the compensation you rightfully deserve? Here's what you need to know. 

What Is Wage Theft?

Wage theft refers to actions taken by an employer that effectively rob employees of their right to be paid correctly for their actual work. 

Such theft takes many forms, and some can be hard to spot. For instance, if an hourly employee goes into work early but is told not to clock in, their employer has stolen their right to compensation. This may be somewhat easy to see. However, if you're asked to travel from the office to a client and aren't paid for travel time, this could also be wage theft — but harder to spot. Additionally, the employer could use a time clock that automatically deducts thirty minutes from your time worked for a meal period – but then not allow you the thirty minutes break. 

What Are Some Examples of Wage Theft?

One of the most common areas of wage theft is working off the clock — when the employer knows an employee comes in early or stays late but expects you not to check in outside normal hours. Employees may also be denied actual downtime on breaks or during unpaid lunch hours. Working off the clock often leads to failure to pay legally required overtime pay. 

Wage theft can also involve the effective pay rates in a person's paycheck. Tipped employees suffer this if their employer fails to make up the difference between the minimum wage for tipped workers and the normal minimum wage if their tips fail to fill the gap. And young workers may not receive proper adjustments from the youth minimum wage to the normal minimum wage.

Employers are also not allowed to make illegal deductions to worker paychecks — such as passing on costs to employees. And many employers misclassify employees as independent contractors to avoid payroll taxes, workers’ compensation costs, and overtime pay. 

What Recourse Do You Have? 

If you think that your employer has stolen compensation from you in some way, what can you do about it? First, you should get to know your rights under your state's labor rules and the federal rules, such as the Fair Labor Standards Act. (Just so you know, Alabama’s Legislature has never written any law protecting employees from wage theft: https://labor.alabama.gov/citizen/ 

Many employees begin by registering a formal complaint with their employer about specific violations of labor law. If your supervisor, for instance, is asking people to work off the clock because the supervisor doesn't want to increase department payroll, the company in general may not even know about the practice. 

Complaints to the employer can work in some situations, but they carry their own danger. Many employees worry about retaliation — including termination — for asserting their rights. And if the wage theft is happening throughout the company, complaints to management may not fix the problem. Speak to an attorney before lodging a complaint – how you complaint matters! 

Alternatively, you can often report the issue to the Wage & Hour Division of the United States Department of Labor. And regardless of the outcome there, you may have the right to sue for the unpaid compensation and damages in court. Wage theft that's endemic to this employer might even result in a larger case involving many affected employees. 

Where Should You Start?

Before you decide how to handle potential wage theft, start by consulting with an employment attorney. You may need to take preparatory action like documenting incidents or notifying your employer before registering complaints with the labor board. An attorney can help you avoid legal pitfalls and prevent things like retaliation or harassment when you do come forward. 

Alabama employees can rely on the assistance of Allen D. Arnold Attorney at Law. With more than 16 years' experience, our legal team can help you find the right path to receiving your wages as you deserve them. Call today to make an appointment.

Alabama Rules of Professional Conduct Notice: No Representation is made that the quality of legal services offered is greater than that of other lawyers. The information contained on this website is not a substitute for legal advice, and reading it does not create an attorney-client relationship.