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. This can take many forms and can sometimes 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-minute break.

Examples of Wage Theft

Working Off the Clock

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 them 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.

Underpayment of Tipped Employees

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. Additionally, young workers may not receive proper adjustments from the youth minimum wage to the standard minimum wage.

Illegal Deductions and Misclassification

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

What Recourse Do You Have?

Understanding Your Rights

If you think that your employer has stolen compensation from you in some way, it is crucial to understand your rights under both federal and state labor laws, such as the Fair Labor Standards Act (FLSA). Unfortunately, Alabama does not have specific laws protecting employees from wage theft, but federal laws still apply.

Registering a Formal Complaint

Many employees begin by registering a formal complaint with their employer about specific violations of labor law. If your supervisor is asking people to work off the clock to avoid increasing department payroll, the company may not even know about the practice. However, complaints to the employer can carry risks, such as retaliation or termination.

Reporting to the U.S. Department of Labor

Alternatively, you can report wage theft to the Wage & Hour Division of the United States Department of Labor. Regardless of the outcome there, you may have the right to sue for the unpaid compensation and damages in court. Wage theft that is systemic within an employer might result in a larger case involving many affected employees.

Where Should You Start?

Consulting with an Employment Attorney

Before deciding how to handle potential wage theft, start by consulting with an employment attorney. At Fenny & Fenny LLC, we can help you take preparatory actions like documenting incidents or notifying your employer before registering complaints with the labor board. An attorney can help you avoid legal pitfalls and prevent retaliation or harassment when you come forward.

Taking Action with Fenny & Fenny LLC

Alabama employees can rely on the assistance of Fenny & Fenny LLC. With our extensive experience in employment law, our legal team can help you find the right path to receiving the wages you deserve. Contact us today to schedule a consultation and let us help you get justice.