Wage theft happens when workers are not paid properly, and their wages are essentially taken by their employer. This is sometimes done intentionally, but it can also be the result of a miscommunication or an oversight.
Either way, it is important for employees to know how wage theft occurs. This helps them understand what red flags to look for and what steps they can take to rectify the situation. Below are three examples.
Failing to pay overtime
Employees must be paid at the proper rate for overtime hours. If an employee works overtime and is only paid their standard rate, even though they are receiving some compensation for their time, it is still an example of wage theft. A related issue is when employees are misclassified by their employer intentionally to avoid making overtime payments.
Failing to provide final paychecks
In some cases, wage theft happens when an employee leaves their job. They are owed a final paycheck and have already logged those hours, but the employer never issues the payment. This can be a complicated issue to resolve because the employee no longer works at the business.
Taking all or a portion of tips
Finally, when employees receive tips for their work, they are entitled to keep those tips. Employers cannot simply take all or part of the tips for themselves, whether they are left in cash or on a credit card. If a tip pool is used, the employer cannot include themselves in the pool.
Taking legal action
Do you believe you have experienced wage theft that means you have not been paid properly? If so, take the time to carefully consider your legal options and your rights.