Despite rising corporate profits in recent years, workers’ paychecks have remained stagnant at all levels across the United States. A low federal minimum wage comes with issues beyond low pay – for instance, the Department of Labor (DOL) has limited resources to investigate wage theft and safeguard employee rights when wages are already very low. A stagnant minimum wage widens the gap between the rich and the poor, and causes many workers to fall further behind and rely on government programs to make ends meet.
What is Wage Theft?
Are you missing overtime hours on paychecks, missing overtime pay from your bank statements, waiting on unpaid overtime wages from your employer, or being paid less than the minimum wage? All of these are examples of wage theft. In other words, wage theft happens when an employer fails to compensate their employees in compliance with the law. It can involve unpaid overtime, or forced work through unpaid or legally mandated breaks, or paying less than the minimum wage.
There are numerous examples of wage theft, from ignorance of the law by uninformed employers as well as ongoing scams to keep costs down. Some common examples of wage theft are:
- Putting pressure on employees to skip unpaid or legally mandated breaks or work off the clock
- Failing to pay for overtime work or providing inaccurate pay stubs
- Misclassifying non-exempt employees as exempt from overtime
- Misclassifying employees as contractors
- Withholding tips or illegal tip pooling schemes
- Paying less than the federal or state minimum wage
- Making unauthorized pay deductions, such as for meals or uniforms
Wage theft happens to all kinds of workers, although it is most common in hourly employment like construction, retail, and hospitality. It can occur even if an employee has a union contract the employee must always make at least what the the federal Fair Labor Standards Act (FLSA) and state law requires.
However, for non-overtime unpaid hours, the DOL may only enforce a wage theft claim with a citation when the worker’s pay at the end of the week dips below the minimum level set by Congress. This limitation on DOL’s authority, combined with the low federal minimum wage, makes enforcement difficult for most workers who earn above $7.25 per hour. “The most basic fair labor standard is a fair day’s pay for a fair day’s work,” says Diana Nobile, one of our attorneys in a piece for Bloomberg Law. “And to say that in 2024, $7.25 an hour is a fair day’s pay for a fair day’s work when it’s not even enough to support an individual, let alone a person who has a family, it’s certainly turning its back on everything that the FLSA was intended to cover.”
What is the Federal Minimum Wage?
The current federal minimum wage is $7.25 an hour. The federal tipped minimum wage is $2.13, with a tip credit of $5.12 applying to workers who earn more than $30 in tips monthly.
Why is the Federal Minimum Wage So Low?
There is a substantial wage gap between many state minimums and the federal level. A federal minimum wage increase has been debated for years, but has been hampered by a lack of bipartisan agreement over how the raise should take place, and how much it should become.
Regardless of what is happening at the political level, it is clear that the federal minimum wage is too low at the moment for effective federal wage theft enforcement claims for all those who earn higher than the minimum rate. The Economic Policy Institute reports that DOL’s enforcement efforts in 2017-2020 recovered $3 billion in stolen wages – this is but a small sum of what was actually withheld from employees across the country during this period and beyond.
Wage Theft Claim: What is it and How is it Calculated?
If you are being underpaid or are missing wages, a wage theft compensation claim can help you recover what you are owed. Even if you earn more than $7.25 an hour, you may still be able to make a claim for unpaid overtim using the FLSA. The FLSA mandates that workers receive “time and a half” at the regular rate of compensation for hours work over 40 in a workweek. This allows workers to receive missing overtime pay at the required rate. Some states provide additional protection by enacting laws that exceed the standards required by the FLSA. For example, California and New York allow workers to recover unpaid overtime for longer statutory periods than the FLSA’s two (or three years for a willful violation) recovery period.
How to Prove Wage Theft
Do you suspect your employer might be engaging in wage theft? If so, the first thing you should do is to determine the hours that you were not paid for. . You can bring a claim even if you do not have records of your precise hours worked. It is the employers job to keep accurate records, and the law does not punish employees where the employer failed to keep accurate records. A wage theft victim can rely on estimates of the unpaid hours worked where the employer failed to keep accurate records.
A wage theft attorney can help you navigate your claim and protect your rights in case of employer retaliation – a tactic some employers use to silence workers. You must keep records of all your communications regarding your pay with your employer, should you be fired for an “unrelated reason” immediately after your DOL complaint.
Wage Theft Lawyers Near Me
McGillivary Steele Elkin LLP is located in the heart of downtown Washington DC at 1101 Vermont Ave NW #1000. We are adjacent to McPherson Square and Franklin Park, and a short walk from the White House. Our attorneys represent all workers, and can help hold your employer accountable for wage theft.
Are You a Victim of Wage Theft? Learn How a Wage Theft Attorney Can Help
Our wage theft law firm stands up for employees who are being cheated out of their wages and benefits. We know how to make the most of legal protections for employees and we will not back down from fighting to help you recover what you deserve.
Contact us today to learn more.
