Sue Employer for Unpaid Wages in Indiana

Under both federal and Indiana labor laws, a worker who has not been paid the wages they are owed by their employer may bring a legal action to recover their unpaid wages. Workers in Indiana have a right to receive fair wages that are paid promptly and accurately under both the federal Fair Labor Standards Act (FLSA) and the Indiana labor law.

Under Indiana law, the definition of wages does not include nondiscretionary bonuses and commissions. A claim for unpaid wages is not accepted by the Indiana Department of Labor if the employee claims payment for time that is not actually worked, e.g., holiday pay, sick pay, severance pay, overdraft fees, or bonus pay. Presumably, if an employer promised to compensate an employee for these items, the employee would have to file a lawsuit in court. They might sue for breach of contract.

Indiana’s Department of Labor takes on wage claims as a service to resolve wage disputes, but it warns employees that it does not guarantee the payment of their wages. In addition, the Indiana Department of Labor does not provide any protection to an employee if their employment is terminated as a result of filing a wage claim against their employer while they are still employed.

Federal and state paycheck laws give workers a number of ways in which to recover wages they are owed by their employer, as follows:

• A Federal Claim for Unpaid Wages: A worker may submit a claim for unpaid wages to the Wage and Hour Division of the federal U.S. Department of Labor. A claim might involve hourly wages as well as unpaid overtime pay to which they are entitled under federal wage laws.
• Lawsuit in Small Claims Court or Other Indiana Civil Court: If a person is owed $10,000 or less, they may file a lawsuit under both the FLSA and Indiana in an Indiana small claims court. If they are owed more than $10,000, they may file a lawsuit against their employer in other state courts or possibly in federal court.
• Indiana Wage Claim: A person may also file a claim with the Indiana Department of Labor for unpaid hourly wages and reasonable attorney’s fees only. They might recover damages if the employer acted in bad faith.
• Union Grievance Procedure: Workers who are members of labor unions have protections in their union contracts. A union collective bargaining agreement sets the wages and benefits for jobs covered by the contract.
  • So, if a person is a union member and they are not paid or are not paid per the rates set in the contract, they may file a grievance through their union representative. A union’s contract also sets its grievance procedure, so they would want to consult their union representative before taking any other action.

If an employer has filed for bankruptcy, then the person may need to file a wage claim in bankruptcy court. Bankruptcy is a process that has its own court and procedures, so an employee who has to turn to bankruptcy court may want to talk to a bankruptcy lawyer.

A local Indiana lawyer would be able to explain how an employee may recover their unpaid wages, plus interest and additional damages. The employee may also recover their attorney’s fees and court costs.

What Should I Do if My Employer Has Not Paid Me?

If an employer fails to pay an employee, the employee may recover the full amount of money they are owed in a claim or lawsuit, as explained above.

They may file a claim with the federal Department of Labor, a claim with the Indiana Department of Labor, a lawsuit in a Virginia civil court, or pursue a union grievance procedure.

It is important to keep in mind that there are time limits for filing a claim with state and federal agencies and for filing a lawsuit in court as well. The time limits may be different between agencies for the same violation. The time limits for claims may be different for federal and state agencies and lawsuits in court.

If a claim or lawsuit is not filed before the time limit is reached, a person may lose their right to file their claim or lawsuit. So, they do not want to delay filing their claim and should act promptly to make their claim under the employment laws in Indiana.

How Do I File an Unpaid Wages Complaint?

Anyone who has not been paid the wages or other benefits they are owed by their employer may file a back wage claim form with the Wage and Hour Division of the federal Department of Labor. The Division processes the claim and recovers the unpaid wages for the employee. Or they may file a claim with the Indiana Department of Labor.

An employee may also file an unpaid wages lawsuit in an Indiana civil court. As noted above, they would choose the right court depending on the amount of money they seek to recover.

How Much Can I Recover for Unpaid Wages?

Under Indiana law, in a lawsuit to recover unpaid wages, employees may recover all unpaid wages owed to them and reasonable attorneys’ fees and costs. If the employer acted in bad faith by refusing to pay wages that they clearly owed their employee, an employer must pay twice the amount of unpaid wages in damages.

Under the federal Fair Labor Standards Act (FLSA), an individual is entitled to be paid the highest minimum wage that applies where they work, whether it is local, state, or federal. In Indiana, the state minimum wage is the same as the federal minimum wage, which is only $7.25 per hour. So, the minimum wage in Indiana is $7.25 per hour.

Federal law also has overtime rules. Employees who work more than 40 hours in a single workweek must be paid overtime. When a person figures out how much their employer owes them in back pay, they want to calculate how much they were paid, if anything, and what they should have been paid. They would then multiply that amount by the number of hours for which they should be paid.

One may also file an unpaid wages lawsuit in an Indiana civil court. If they are a union member, as noted above, they want to talk to their union representative.

What Are the Legal Consequences and Remedies for Unpaid Wages?

Of course, the amount one can recover depends on how much their employer owes them. Generally speaking, they can recover the full amount of wages they are owed and possibly interest and attorney’s fees and costs.

In addition, they might be able to recover a penalty that is allowed by federal or Indiana law, as noted above. Other penalties might be owed by the employer depending on state or federal law. A lawyer would be able to help determine exactly how much they may have a right to recover.

How Can I Prove an Unpaid Wages Claim?

In a lawsuit for unpaid wages that seeks the payment of overtime or wages that were less than the minimum wage, a worker may be able to recover the following:

• The full amount of unpaid wages and benefits they are owed
• Interest on the full amount of unpaid wages and benefits
• Reasonable attorney’s fees and court costs.

As noted above, in some cases, in a claim with the Indiana Department of Labor or in a lawsuit based on Indiana law, an employee may be able to recover an additional amount as a penalty as well as attorney’s fees and costs.

What Kind of Lawyer Do I Need for Unpaid Wages Claims?

If your employer has not paid you the wages or benefits that you are owed, you want to talk to an Indiana employment attorney. LegalMatch.com can quickly connect you to an attorney who can analyze your situation and guide you through the process of getting the full amount of money you are owed for the work you have done.