Under Texas employment laws, including the Texas Labor Code, failing to pay an employee all of the wages, salary, or benefits that they are entitled to is one of the many forms of wage theft. Unpaid wages may include failure to pay overtime when due, withholding too much for tips, or misclassifying employees so they do not earn the overtime to which they are entitled.
This is an illegal practice that may be referred to as withheld wages or withheld salary. There are many different ways in which wages may go unpaid, including, but not limited to:
- An employer fails to pay overtime wages when legally required
- An employer fails to pay an employee the correct minimum wage
- An employee is intentionally miscategorized so that they are paid less than they should be
- Clerical or administrative errors occur
- The employee is not paid for all of their time on the job. In other words, they are made to work “off the clock”
- There are disputes about paid leave or other benefits
- Salaries are withheld when the employee files for disability
- Business expenses that were paid out of pocket are not reimbursed
There are both Texas state laws and federal laws that set the minimum wage that most workers are entitled to receive. These laws also outline which types of workers are entitled to receive overtime pay for working longer than a specific number of hours per day or per week.
In some situations, employers do not comply with federal and state minimum wage and overtime laws. In some situations, employees have employment contracts that outline the salary and benefits they are supposed to receive in exchange for their contractually-defined performance.
If an employer fails to pay the employee their full salary or if they fail to provide all of the benefits agreed to in the contract, the employer has breached the employment contract.
What Should I Do if My Employer Has Not Paid Me?
Texas labor laws provide a minimum hourly wage for workers who are paid by the hour, as well as overtime requirements for employers to pay. There are a few different ways an individual can take action if their employer has not paid them.
An employee can file a complaint with the Wage and Hours Division (WHD) of the U.S. Department of Labor. There are time limits for filing unpaid wages claims, so it is important to file as soon as possible.
An employee can also file a lawsuit in federal court. This type of lawsuit must be filed within two years of the violation, meaning the day when the wages became unpaid.
However, if the violation by the employer was willful, the time limit is three years. It is important to note that employees cannot file private lawsuits if they have already been paid their owed wages after filing a complaint with the WHD.
When an employee is a union member, their first step is to report the issue to their union representative. It may be possible for the union to resolve their issue.
The State of Texas can also prove other options for recovering unpaid wages. An employee can file a complaint with the Texas Workforce Commission (TWC). For more information on how an employee can resolve their unpaid wages issue, they should reach out to a local Texas lawyer.
How Do I File an Unpaid Wages Complaint?
It is illegal for an employer to terminate or otherwise punish an employee who files an unpaid wages claim. When an individual files an unpaid wages claim, it may involve:
- Informing the employer regarding the unpaid wages and requesting the issue be corrected. When a company has a human resources department, the employee can consult with the human resources (HR) department to resolve the issue.
- Contacting the Wage and Hour Division (WHD) of the U.S. Department of Labor to report a possible violation of the Fair Labor Standards Act (FLSA) wage regulations or for more information about reporting procedures.
Filing a complaint with a government agency, for example the Equal Employment Opportunity Commission (EEOC).
- Filing a civil lawsuit, which may be appropriate if an employee has a written employment contract.
In most situations, if an employee files an internal complaint with the human resources department, it will be sufficient to correct a simple oversight or mistake. If, however, the complaint involves the HR department or if the internal complaint does not resolve the issue, it may be necessary to file a civil lawsuit.
If there are several employees who are affected by unpaid wages, a class action lawsuit might be filed. In some situations, wage issues also involve employment discrimination on the basis of gender, race, or other characteristics.
In these types of cases, multiple legal issues may be involved, and it may be more complex to seek a remedy.
How Much Can I Sue for Unpaid Wages?
The amount that an employee can sue and recover for unpaid wages will depend on how much the employer owes the employee. In general, the employee can recover the full amount of wages that they are owed as well as interest, attorney’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 an employee’s salary. Unpaid wages lawsuits can result in negative legal consequences for employers, such as:
- The employer may have to pay the employee a damages award to make up for lost wages as well as other costs
- Being required to make a change in company policies or replacing the policies that led to the issue
- Terminating the supervisor or employer who was responsible for the unpaid wages issue
- The business itself may face consequences, for example, imposition of civil fines or suspension of a business license
In most situations, a damages award will fully compensate an employee for the losses they incurred. Examples of common remedies in unpaid wages claims include:
- Reinstating the employee to their former position
- Recovering all of the unpaid wages the employee is due
- The employer having to pay punitive damages
- Investigating the company’s policies
How Can I Prove an Unpaid Wages Claim?
When proving an unpaid wages claim, documentation is key. Lawsuits for failure to pay wages typically require analyzing documents, records, and statements.
Examples of documentation that is often examined in unpaid wages 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
Employees should maintain detailed records about their employer’s wage-paying practices, including documenting the hours that they have worked.
What Kind of Lawyer Do I Need for Unpaid Wages Claims?
If you have any type of wage dispute, it can be complex because it often involves other legal issues, such as theft or discrimination. These disputes can also be complicated to resolve because federal and state laws may be involved.
Because of these nuances, it can be very helpful to reach out to a Texas employment attorney. Your lawyer will help you understand the Texas law and federal laws that will apply to your claim and help you obtain the wages you are owed.
