When an individual’s employer does not pay them all of their earned wages, salary, or benefits, it is considered a form of wage theft under North Carolina labor laws. There are several different examples of what may be considered unpaid wages, including, but not limited to:
- Failing to pay overtime when it was earned
- Withholding too much money for tips
- Not correctly classifying a worker so they do not earn the overtime they are entitled to
These practices are against the law and can also be referred to as withholding wages and withholding salary. There are numerous different ways in which an employer may not properly pay wages, including:
- If administrative or clerical errors occur
- Intentionally miscategorizing an employee to pay them less than they should be earning
- Filing to pay an employee the correct minimum wage
- The worker’s salary being withheld when they file for disability
- If there is a dispute about paid leave or other benefits
- Failing to pay overtime wages that were legally required
- A worker was not being paid for all of their time on the job
- In other words, being made to work “off the clock”
- The employer did not reimburse the worker for expenses they paid for out of their own pocket
It is possible that there are both North Carolina state laws and federal laws that set the amount of minimum wage that the majority of workers are entitled to be paid. These minimum wage laws also outline the categories of workers entitled to receive overtime pay when they work more than a specific number of hours per day or days per week.
There are situations when an employer is not complying with the state and federal minimum wage and ovetime laws. Certain workers have employment contracts that outline the salaries and benefits that they will receive in exchange for performing their jobs under the contract.
If an employer does not pay their worker the full amount they are owed or if they fail to provide all of the benefits outlined in the employment contract, that employer has breached the employment contract.
What Should I Do if My Employer Has Not Paid Me?
Under the labor laws of North Carolina, there is a minimum hourly wage for individuals who are paid on an hourly basis as well as overtime requirements employers are required to pay. There are several options available to workers when their employer has not properly paid them.
Wage complaint
An employee can file a complaint about their unpaid wages with the Wage and Hours Division (WHD) of the U.S. Department of Labor. A worker should note that there may be time limits for them to file their unpaid wages claim.
Federal lawsuit
In some situations, a worker can file a lawsuit in federal court. Lawsuits may be filed up to two years after the violation or the date when the wages became unpaid.
If an employer engaged in the violation willfully, the time limit to file the lawsuit is three years. It is important to be aware that a worker cannot file a lawsuit if they have already been paid the wages they were owed after filing a complaint with the WHD.
Unions
If a worker is a union member, they can begin by reporting the issue to their union representation. In these cases, a worker’s union may be able to resolve their issue. For more information on resolving unpaid wages issues, employees can reach out to a local North Carolina lawyer.
How Do I File an Unpaid Wages Complaint?
Employers are not allowed to fire or otherwise punish a worker who has filed an unpaid wages claim. When a worker is seeking to obtain their unpaid wages, the following steps may be required:
- Informing the employer regarding the unpaid wages and requesting they be paid
- If the employer has a human resources (HR) department, the worker may be able to reach out to the HR department to resolve the wage issue
- Reaching out to the Wage and Hour Division (WHD) of the U.S. Department of Labor to report an alleged violation of the Fair Labor Standards Act (FLSA)
- Filing a complaint with a government agency, such as the Equal Employment Opportunity Commission (EEOC).
File a civil lawsuit
Usually, when a worker submits an internal complaint to the HR department, that will typically be enough to correct a simple oversight or mistake. If, however, the worker’s complaint also involves the HR department or if the employer’s internal process does not resolve the issue, it may be necessary to file a lawsuit.
If there are numerous employees who have been affected by their employer not paying proper wages, a class action lawsuit may be filed. In some situations, a wage issue may also involve employment discrimination against the worker on the basis of race, gender, or other characteristics.
How Much Can I Sue for Unpaid Wages?
The amount that a worker will be able to sue for and recover in their unpaid wage claim depends on the amount that the employer owes to the worker. In general, a worker can recover the full amount of the wages they are due plus interest, lawyer’s fees, and costs.
What Are the Legal Consequences and Remedies for Unpaid Wages?
As noted above, it is illegal for an employer to withhold money the worker has earned. Unpaid wages lawsuits may result in negative consequences for the employer, including:
- Being required to pay the worker damages to make up for lost wages as well as other associated costs
- Being required to revise their company policies or to replace the policies that led to the wage issue
- Firing a supervisor or a worker who was responsible for the unpaid wages
- The company itself can face consequences, for example, civil fines or suspension of the business license
In certain situations, the damages award will totally compensate the worker for the losses that they incurred. There are several common examples of remedies that may be awarded in unpaid wages claims, including:
- Investigating the policies of the company
- Reinstating the worker to their position
- Paying all of the unpaid wages the worker is due
- Punitive damages if the employer willfully engaged in outrageous conduct
How Can I Prove an Unpaid Wages Claim?
The key to successfully proving an unpaid wages claim will be providing documentation of the missing wages. Lawsuits for failing to pay wages typically require a review of documents, records, and statements.
The types of documents that can be used as evidence in unpaid wages claims include:
- Pay stubs and timesheets
- Tax papers, such as W2s
- Receipts and other documents, such as if an employer is withholding reimbursement for out-of-pocket payments
Workers should keep records of the wages they earn, such as documentation of the hours they work. This applies whether they have a dispute with their employer or not.
What Kind of Lawyer Do I Need for Unpaid Wages Claims?
When you are having issues collecting the wages you have earned in North Carolina or if you have any type of wage dispute, it is important to consult with a North Carolina employment attorney. This is because there can be multiple issues involved, including discrimination, as well as state and federal law issues.
Your lawyer will help you gain an understanding of the North Carolina laws as well as any federal laws that may apply to your claim as well as help you obtain the wages you are due. LegalMatch provides a free and convenient way to find a North Carolina attorney in your area who can help you get the wages you earned in as little as 15 minutes.
That is all the time it takes to submit your issue on the website. In around 24 hours, you will be matched with lawyers near you who are ready to help you resolve your wage issue.
