Unpaid wages claims are lawsuits brought by an employee against their employer when the employer has not paid all of the wages made by the worker. In short, an employee’s earnings are based on the number of hours that an employee works multiplied by their hourly rate of compensation.
The Federal Fair Labor Standards Act (“FLSA”) is the federal law that regulates and mandates employers to pay workers suitably for all time worked. The FLSA also includes the right for workers to obtain a minimum wage and directs employers to pay workers overtime pay for any time worked over 40 hours in a workweek.
In addition to federal laws, various state laws also regulate and require an employer to pay a specified minimum wage or overtime pay. State laws often provide more protections for employees for wage and hour disputes. State laws may include a higher minimum wage or set time limits within which an employee must be paid when a wage and hour dispute is made.
Therefore, it is essential to comprehend the federal laws on unpaid earnings and your local state laws on the matter.
What Are Minimum Wage Infractions?
As noted above, the Fair Labor Standards Act assembled a federal right to a minimum wage. A minimum wage infraction transpires when an employer does not pay an employee the federally mandated minimum hourly wage. As of February 2022, the federal minimum wage is set at $7.25 per hour, which has been the federal minimum wage since 2009. Once again, state or city laws may demand a higher minimum wage than the federal standard.
If you did not acquire the required minimum wage, you might accumulate unpaid wages from your employer. For instance, if you were reimbursed $6.75 an hour for ten weeks, you can make an unpaid wages claim against your employer for the difference of $.50 per hour ($7.25 – $6.75) for 400 hours (40 hours x 10 weeks), which is a total of $200.00.
If your state or local jurisdiction mandates a higher minimum wage, such as the $13 per hour minimum wage in California for employers with over 26 workers, then you can make an unpaid wages claim for the difference between that minimum wage and the wage you were paid. For instance, if you were only paid $6.75 per hour for ten weeks in California, you may make an unpaid wages claim for $2,500.00 ($6.25 x 400 hours).
Another typical minimum wage breach by employers is failing to pay an employee that receives tips the minimum wage. Employees who accept tips may be paid a lower minimum wage, so long as they make enough tips to earn the minimum wage for each hour they work. Therefore, an employer may pay you $3.00 per hour, as long as, after tips, you make the mandated $7.25 per hour federal minimum wage.
You must still make the federal or state-required minimum wage as a tipped employee. If you did not make enough tips to attain the federal minimum wage, your employer must pay you the difference. If the employer fails to pay you the difference, you may make an unpaid wages claim against them.
What Are Other Typical Breaches of Wage Laws?
In addition to failing to pay an employee for time worked or paying an employee the required minimum wage, employers may also break hourly wage laws in other ways. Everyday violations of wage laws may also include the following:
- Failing to pay an employee for time worked off the clock (i.e., requiring an employee to work before or after clocking in without pay);
- Failing to pay an employee for paid meal and rest breaks;
- Failing to pay an employee for mandated training classes;
- Failing to pay an employee earned dividends or commissions;
- Making unauthorized removals from an employee’s paycheck, such as for company costs;
- Failing to reimburse an employee for instructed periods of travel;
- Withholding overtime pay from an employee; or
- Withholding salary or failing to pay an employee on time for work performed.
Once again, the state you work in may specify the time frame you need to be paid by. In most states, an employee must normally be paid at least bi-weekly.
How Do I Make an Unpaid Wages Claim?
The Fair Labor Standards Act is enforced by the Wage and Hour Division (“WHD”) of the Department of Labor. Suppose you think your employer has not paid you the compensations you are entitled to. In that case, you may contact your local Wage and Hour Division office. After contacting the local WHD office, they will investigate your employer. They will also review the documents you submitted (pay stubs, work logs, tax documents, etc.) and determine whether or not they have violated the law.
Suppose the employer is found to have violated the FLSA. In that case, the Labor Department may initiate a civil lawsuit against the employer for payment of the employee’s unpaid wages, as well as liquidated damages, if the employer is found to have willfully violated the law. Suppose the employee is not satisfied with the results of the investigation. In that case, they may then bring a private civil lawsuit against their employer for payment of all unpaid wages, liquidated damages, and attorney fees.
Once again, there are state laws regarding unpaid wages claims. For instance, an employee would file a claim for unpaid wages with the Texas Workforce Commission (“TWC”). The TWC would then investigate the employer, decide if they broke local wage laws, and help the worker recover any wages owed.
Alternatively, an employee may also bring a private civil lawsuit against their employer based on state wage laws’ violation(s). There are various requirements as to when an unpaid wages claim must be brought; therefore, you must bring your claim for unpaid wages as soon as possible.
Do I Need an Attorney for Unpaid Wages Claims?
Suppose you believe that your employer has violated federal or state wage laws. In that case, you should first immediately contact your human resources department to attempt to resolve your issue. Suppose the human resources department cannot assist you in recovering your lost wages. In that case, you should then contact the federal or state department responsible for enforcing the wage laws in your area.
Suppose the federal or state departments cannot assist in recovering your lost wages. In that case, it is in your best interests to consult with a well-qualified and knowledgeable employment law attorney in your area. An experienced employment law attorney will be able to help you gather up the required evidence necessary to prove your unpaid wages claim. An employment law attorney will also initiate a civil lawsuit against your employer for unpaid wages. Finally, an attorney will be able to represent you in court at any necessary hearings.
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