Law of Wage Disputes

Wage dispute cases involve disagreements between employees and their employers over the payment of wages.

In these disputes, employees may argue that they have not been paid the correct amount for their work or that they have not been paid at all for a specific pay period.

Wage disputes are governed by wage standard laws, which include minimum wage and overtime wage laws. These laws aim to ensure that employees receive fair compensation for their labor.

What Are Wage Standard Laws?

Wage standard laws, such as the federal Fair Labor Standards Act (FLSA), establish the minimum requirements that employers must follow when compensating their employees. The FLSA mandates a federal minimum wage of $7.25 per hour and requires employers to pay employees overtime at a rate of 1.5 times their regular pay after 40 hours within a work week.

In addition to the federal Fair Labor Standards Act (FLSA), states may implement their own wage and hour laws that provide additional protections or higher wage standards for employees.

State Minimum Wage Laws

Many states have set their minimum wage higher than the federal minimum wage of $7.25 per hour. For example, as of 2023, California’s minimum wage is $15.50 per hour for all employers. In Washington state, the minimum wage is $15.74 per hour. These state minimum wage laws take precedence over the federal minimum wage, as they provide greater benefits for employees.

Overtime Laws

While the FLSA requires employers to pay overtime at a rate of 1.5 times the regular pay for hours worked beyond 40 hours in a workweek, some states have additional overtime requirements. For example, in California, employers must pay overtime for hours worked beyond 8 hours in a single workday and double time for hours worked beyond 12 hours in a single workday.

Meal and Rest Break Laws

Some states require employers to provide employee meal and rest breaks during their shifts. For example, California mandates that employers provide a 30-minute unpaid meal break for employees working more than 5 hours in a day and a 10-minute paid rest break for every 4 hours worked.

Paid Sick Leave Laws

While the FLSA does not require employers to provide paid sick leave, several states and local jurisdictions have enacted their own paid sick leave laws. For example, in New York, employers are required to provide up to 40 hours of paid sick leave per year, depending on the employer’s size and net income.

Family and Medical Leave Laws

The federal Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons.

Some states have implemented their own family and medical leave laws that expand upon or differ from the federal FMLA. For example, New Jersey’s Family Leave Act allows eligible employees to take up to 12 weeks of unpaid, job-protected leave in a 24-month period for specific family-related reasons.

These examples illustrate the variation in wage and hour laws across different states. When state laws provide more generous benefits or protections than the FLSA, employees are entitled to the greater benefits provided by state laws.

Who Is Not Covered by Wage Standard Laws?

Certain employees, known as “FLSA-exempt” employees, are not covered by the provisions of the FLSA.

For an employee to be exempt from FLSA minimum wage and overtime laws, an employee must be paid on a salaried basis and perform work that is exempt from FLSA coverage. Exempt work includes executive, administrative, professional, computer employee, and outside sales employee roles, which have specific criteria to qualify as exempt.

When Do State Minimum Wage and Overtime Laws Apply?

Even if employees are exempt from the FLSA, they may still be subject to state minimum wage or overtime laws.

States may not recognize the same exemptions as the FLSA or they may have more generous wage laws. In cases where state wage laws conflict with or differ from the FLSA, the law providing greater protection for the employee prevails.

Can I Sue an Employer Who Has Not Properly Paid Me?

Employees who have not been paid the wages they are owed can sue their employer in court. Both the FLSA and most state laws require employers to maintain records of employees’ work hours, rates of pay, and total weekly earnings. If an employer fails to keep these records, a court may accept an employee’s allegations of nonpayment or underpayment as true. In cases where employers maintain records, a court will examine the evidence from both parties to determine the outcome of the wage dispute.

If an employee decides to sue their employer for unpaid wages, they will typically follow these steps:

1. Consult with an employment attorney: Before taking legal action, it is advisable for the employee to consult with an employment lawyer to discuss the specifics of their case and determine the best course of action.
2. Gather evidence: The employee should gather evidence to support their wage claim, including pay stubs, time records, employment contracts, any written communication related to wages, and any other relevant documentation.
3. File a complaint: Depending on the jurisdiction and the case specifics, the employee may need to file a complaint with the appropriate state labor agency or directly in court. Some states require employees to exhaust administrative remedies before filing a lawsuit.
4. Serve the employer with the complaint: Once the complaint has been filed, the employee must serve the employer with a copy of the complaint and a summons, notifying them of the lawsuit.
5. Engage in the discovery process: During the discovery process, both parties exchange evidence and information related to the case. The employee may request documents from the employer, such as payroll records, time sheets, and any relevant internal communications.
6. Go to trial: If the case cannot be resolved through negotiation or mediation, it may proceed to trial. Both parties will present their evidence and arguments to the court, which will then make a determination on the wage dispute.

The evidence used in wage dispute cases may include the following:

1. Employee’s evidence: The employee may present pay stubs, time records, employment contracts, written communication about wages, and witness testimony to support their claim of nonpayment or underpayment.
2. Employer’s evidence: The employer may present payroll records, timesheets, employment contracts, written communication about wages, and witness testimony to counter the employee’s allegations.
3. Expert testimony: In some cases, expert witnesses, such as forensic accountants, may be called upon to analyze financial records and provide their opinion on whether or not the employee was underpaid.

Ultimately, the court will examine both parties’ evidence to determine the wage dispute’s outcome. If the employee prevails, the court may award unpaid wages, penalties, and in some cases, attorney’s fees and court costs.

What Other Laws May Apply to a Wage Dispute?

Employment contracts between employees and their employers may also play a role in wage disputes. These contracts often specify the rate of pay, and if an employee believes they are not being paid properly, they can sue their employer. In such cases, a judge will examine the contract and apply principles of contract law to determine the outcome.

Do I Need the Help of a Lawyer With a Wage Dispute?

If you suspect that you have not been properly paid, it is advisable to consult with an employment lawyer.

An experienced employment attorney can review the specifics of your case, explain your rights and options, and represent you in negotiations, hearings, and court proceedings. By seeking legal advice, you can better understand and protect your rights in a wage dispute.