Under both federal and Wisconsin 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 Wisconsin have a right to receive fair wages that are paid promptly and accurately under both the federal Fair Labor Standards Act (FLSA) and Wisconsin labor law.
The Equal Rights Division of Wisconsin’s Department of Workforce Development (DWD) takes on wage claims as a service to resolve wage disputes. If a worker’s employer does not pay them the wages they have earned on the regularly established payday, the worker should first ask the employer for payment of their wages.
If the worker has not received the payment after 6 days, they may submit a claim to the DWD. Once a claim is filed, the staff at the DWD tries to resolve the issue with the employer.
The DWD accepts claims for the following types of pay and benefits:
- Salaries and hourly pay
- Severance pay
- Commissions
- Expenses
- Holiday pay
- Bonuses
- Vacation pay
- Illegal deductions from wages
- Other similar benefits that an employer has agreed to pay an employee as compensation for their labor or as a matter of policy.
Federal and Wisconsin 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 and Wisconsin law as well.
- Lawsuit in Small Claims Court or Other Wisconsin Civil Court: If a person is owed $10,000 or less, they may file a lawsuit under both the FLSA and Wisconsin small claims court. If they are owed more than $10,000, they may file a lawsuit against their employer in other Wisconsin state courts or possibly in federal court.
- Wisconsin Wage Claim: An employee may also file a claim with the Equal Rights Division of the Wisconsin Department of Workforce Development for unpaid hourly wages and reasonable attorney’s fees. A claim may be submitted online or by mail.
- 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 Wisconsin 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 Wisconsin DWD, a lawsuit in a Wisconsin 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 Wisconsin.
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 Wisconsin DWD.
An employee may also file an unpaid wages lawsuit in a Wisconsin civil court. As noted above, they would choose the right court depending on the amount of money they seek to recover from their employer.
How Much Can I Recover for Unpaid Wages?
Under Wisconsin law, in a lawsuit to recover unpaid wages, employees may recover all unpaid wages owed to them. 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 Wisconsin, the state minimum wage is the same as the federal minimum wage, which is only $7.25 per hour. So, the minimum wage in Wisconsin 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 a Wisconsin 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 Wisconsin, if the DWD investigator determines that an employer does owe an employee wages and the employer refuses to pay, the investigator refers the claim to the local district attorney in the county in which the employee lives for collection from the employer.
The district attorney may go to court to collect the wages owed, and the court may assess damages that may equal as much as 100% of the wages owed by the employer. The court may also award attorneys’ fees and costs.
A lawyer would be able to help determine exactly how much an employee may have a right to recover.
In addition, Wisconsin law prohibits an employer from engaging in retaliatory actions against an employee who does any of the following:
- Submits a complaint
- Attempts to enforce a right they have under Wisconsin law
- Testifies in a case involving unpaid wages, or
- Offers help in a case that involves unpaid wages.
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
- Per Wisconsin law, if the employer does not pay wages that are determined to be owed to the employee, damages of up to 100% of the amount of the wages owed
- Reasonable attorney’s fees and costs.
To prove their case, an employee should keep track of any written agreement they have with their employer that states the terms and conditions of their employment, including the pay they should earn.
In addition, an employee needs to keep track of the time at which they begin and stop work every day. They should also make note of their meal and rest breaks and the total hours they work.
If an employee is paid by contract or piece rate, they should still earn at least the minimum wage for each hour they work, so they want to keep track of the amount of time they spend on each contract or piece. An employee should also keep every last pay stub they get from their employer. An employer should give an employee a pay stub or wage statement every time they are paid.
The pay stub or wage statement should state the employee’s name, wages earned, dates of the pay period, and their employer’s name, address, and telephone number. It should also show any deductions that were made for taxes or wage garnishments and the hours of sick leave or vacation time accrued, if any.
All of the information and documents listed above should help an employee determine if they have been paid what they are owed. They may also help them with their case if they must file a wage claim.
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 a Wisconsin 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.
