Do you think employers always play by the rules when it comes to paying workers?
Think again.
Wage theft is shockingly common all across the United States. It doesn’t matter what industry you work in. Employers are taking advantage of vulnerable workers and cheating them out of money they rightfully earned. And the worst part of all this?
Most workers have no idea they have legal rights to recover those stolen wages.
Don’t feel discouraged just yet…
The good news is that the law is actually on your side. Understanding your rights in unpaid wage recovery cases can mean the difference between losing thousands of dollars… or getting every cent back.
Let’s dive in so you know exactly what steps to take next.
What you’ll discover:
- What Is Wage Theft And How Does It Happen?
- Your Legal Rights Under Federal Law
- How Unpaid Wage Recovery Services Work
- Steps To Take If You’re Owed Money
What Is Wage Theft And How Does It Happen?
Wage theft refers to the failure of an employer to pay a worker all the wages they legally earned.
Examples include:
- Not paying minimum wage
- Withholding overtime pay
- Forcing off-the-clock work
- Misclassifying employees as exempt
- Stealing tips
And here’s the shocking truth…
According to the Economic Policy Institute (EPI), wage theft amounts to approximately $50 billion every year. That’s not a typo. It’s billions with a B. That makes wage theft the single largest form of property crime in America.
Oh, and it gets worse.
Most workers never file a claim to recover their stolen wages. They may not know their rights or they may fear retaliation.
That’s why working with experienced professionals like Kingsley Szamet Employment Lawyers can be essential for workers seeking unpaid wage recovery services. It levels the playing field against employers counting on workers staying silent.
Your Legal Rights Under Federal Law
The Fair Labor Standards Act (FLSA) is the federal law that guarantees workers’ wages.
It provides:
- Minimum wage payment for all hours worked
- Overtime pay at 1.5x regular rate for hours worked in excess of 40 per week
- Protection from retaliation for filing wage complaints
- The right to sue employers for unpaid wages
The FLSA covers the vast majority of workers in America. Employers cannot simply decide not to pay overtime or dock wages without consent.
And if they break those rules?
Workers can recover their unpaid wages plus an equal amount in liquidated damages. That effectively doubles the amount workers are owed. Employers may also have to pay attorney fees and court costs.
Pretty powerful protections, right?
The problem is that many workers don’t even know these laws exist. Employers take advantage of this lack of knowledge every single day.
How Unpaid Wage Recovery Services Work
Unpaid wage recovery services help workers recover their stolen wages.
Let’s see how the process works…
Step 1: Case Evaluation
Employment attorneys review pay stubs, time records, and employment contracts to evaluate evidence of illegal wage withholding.
Step 2: Calculating What You’re Owed
Professionals calculate total unpaid wages including overtime, minimum wage violations, and additional damages permitted by law.
Step 3: Filing Your Claim
Workers can file claims through the Department of Labor or bring a private lawsuit. Collective actions with other workers may be possible in some cases.
Step 4: Negotiation or Litigation
The majority of wage theft cases settle without trial. Employers generally prefer to settle rather than endure costly court proceedings and negative publicity.
The Department of Labor recovered $273 million in back wages for nearly 152,000 workers in 2024. That’s more than $1,300 per worker on average.
But experts believe the actual amount of wage theft occurring nationwide is at least 99 times greater than the recovered amount.
Steps To Take If You’re Owed Money
Know that you’re owed money? Taking immediate action will help protect your rights.
Document Everything
Keep records of all hours worked and save pay stubs, schedules, and communications about pay. Screenshots of time clock records can be crucial evidence.
Calculate Your Losses
Compare hours worked to hours paid. Look for discrepancies in overtime pay and check that your rate meets minimum wage requirements.
Don’t Wait Too Long
Unpaid wage claims have strict deadlines for filing. The deadline is two years under federal law. Willful violations extend the window to three years.
Pass that deadline? You’re never going to see that money again.
Don’t Confront Your Employer Alone
Talking to your employer without first getting proper guidance can backfire. They may start destroying evidence. It’s smarter to always get professional advice first.
Common Types Of Wage Violations
Knowing what to look for can help workers identify wage theft problems quickly.
Unpaid Overtime
Employers sometimes force workers to clock out before finishing tasks. Others flat out refuse to pay time-and-a-half for hours over 40. Both practices break federal law.
Minimum Wage Violations
Some employers pay below minimum wage by making illegal deductions. Worker misclassification as independent contractors also avoids wage requirements illegally.
Off-The-Clock Work
Requiring employees to prepare workstations before clocking in or cleaning up after the end of a shift steals wages just as surely as not paying at all.
Tip Theft
Employers cannot keep tips that are intended for workers. Illegal tip-pooling arrangements that involve management also violate the law.
The Bottom Line
Wage theft is an enormous problem impacting millions of American workers every year. The law provides strong protections… but only for workers who know their rights and take action.
Remember these three key points:
- The FLSA guarantees minimum wage and overtime pay
- Workers can recover double their unpaid wages in many cases
- Deadlines for filing claims are strict
- Documentation is critical to proving wage violations
- Professional unpaid wage recovery services can improve outcomes
Nobody should ever be required to work for free. Every hour worked deserves fair compensation under the law.
If an employer has stolen wages, workers have real options for fighting back. The law is on their side. Having the right legal support makes all the difference.
The money belongs to the workers who earned it. It’s time to take it back.
Frequently Asked Questions
What qualifies as wage theft?
Wage theft is any failure to pay legally owed wages. This includes minimum wage violations, unpaid overtime, tip theft, and forced off-the-clock work.
How long do workers have to file unpaid wage claims?
Under federal law, workers have two years to file a claim. Willful violations of the FLSA extend the statute of limitations to three years.
Can workers be fired for reporting wage theft?
Retaliation against workers for reporting wage violations is illegal. Employers cannot fire, demote, or otherwise punish workers for filing a complaint.
What damages can workers recover?
Workers can recover their unpaid wages plus an equal amount in liquidated damages. This effectively doubles the total recovery.