Labor Day recognizes the contributions workers make every day. For some employees, though, the paycheck they receive may not reflect all of the time they worked or compensation they earned.
Wage theft can take different forms, including unpaid overtime, off-the-clock work and other pay practices that may violate federal or state law. Some potential wage violations are obvious, while others can be hard to notice without looking closely at your hours and paycheck.
The Fair Labor Standards Act (FLSA) establishes federal minimum wage, overtime and recordkeeping requirements for covered employees. Understanding common red flags of wage theft can help workers recognize when something about their pay may not add up.
1. You're Working Before or After Your Shift Without Pay
Your workday may involve more than the hours between clocking in and clocking out. Employees may perform tasks before or after their scheduled shifts, including:
- Setting up equipment
- Logging into computer systems
- Preparing a work area
- Completing paperwork
- Cleaning or closing a worksite
- Finishing tasks after clocking out
- Responding to work-related requests
Under the FLSA, hours worked generally include time an employee is required or allowed to work. An employer cannot necessarily avoid paying an employee just because work occurred outside the scheduled shift or was not formally requested.
2. You're Working More Than 40 Hours but Not Receiving Overtime
For many covered, nonexempt employees, federal law requires overtime compensation when they work more than 40 hours during a workweek. Overtime must generally be paid no less than one-and-a-half times an employee’s regular rate of pay.
Not every employee is entitled to overtime, and exemptions can apply depending on the employee's job duties and other circumstances. However, receiving a salary or having a particular job title does not necessarily determine if someone is exempt from overtime requirements.
Consistently working more than 40 hours without seeing overtime reflected on your paycheck can be a reason to take a closer look at how your wages are being calculated.
3. You're Classified as an Independent Contractor, but Your Work Looks Like Employment
Proper classification is important because most independent contractors do not receive the same FLSA protections as employees. However, simply calling someone an independent contractor does not necessarily make the classification correct.
Whether a worker is an employee or independent contractor depends on the actual working relationship and applicable law. Misclassification can result in workers missing wages or protections they may have otherwise received.
4. Your Timecard Doesn't Match the Hours You Worked
Your time records should accurately reflect the hours you worked. Some of the most common potential problems occur when:
- Hours disappear from a timecard
- Clock-in or clock-out times are changed
- Work performed outside a scheduled shift is not recorded
- Meal periods are deducted even though the employee continued working
- Recorded hours consistently differ from an employee's personal records
The FLSA requires covered employers to maintain certain accurate records concerning employees' hours and wages. Repeated discrepancies between the hours worked and the hours recorded can add up over time.
5. You're Working During an Unpaid Meal Break
An unpaid lunch break is typically supposed to be a break from work. Under federal law, meal periods generally do not need to be treated as compensable work time when an employee is completely relieved of duties.
However, an employee who is expected to continue performing work during a meal period could still be working. That can include situations where an employee regularly answers work calls, responds to emails or assists customers.
Automatically deducting a meal period can become a problem when an employee is working during that time. Workers should pay attention to whether unpaid meal periods on their timecards reflect breaks they actually received.
6. Your Tips or Paycheck Deductions Don't Add Up
Employees should understand what is being added to or taken out of their paychecks. For tipped workers, federal law places restrictions on how employers can handle employee tips. Most employers, including managers and supervisors, cannot keep employees' tips for themselves.
A deduction is not always unlawful just because it appears on a paycheck. However, workers who repeatedly see unexplained deductions or changes in their compensation should consider asking how those amounts were calculated.
7. You're Discouraged From Asking Questions About Your Pay
Workers who notice missing hours, unpaid overtime or another discrepancy may want to ask a supervisor, human resources department or payroll representative how their compensation was calculated.
Federal law also contains protections against certain forms of retaliation involving wage-and-hour complaints. Depending on the circumstances, firing, disciplining or otherwise discriminating against a worker because they made a protected complaint can create additional legal issues.
Pressure to remain silent does not necessarily mean wage theft has occurred. However, employees should take concerns about their wages seriously and keep records of communications involving disputed pay.
Best Practices for Keeping Track of Your Wages
One of the simplest ways to spot a potential wage problem is to know what should appear on your paycheck. Workers can develop a few habits that make discrepancies easier to identify:
- Track your hours. Keep a personal record of when you begin and finish work, including job duties performed outside your scheduled shift.
- Review each paycheck. Compare your recorded hours with your regular hours, overtime, rate of pay, tips and deductions.
- Watch for patterns. A single payroll error can happen, but repeated missing time or unexplained differences deserve closer attention.
- Keep important records. Save pay records, schedules, time records and relevant communications about your hours or compensation.
- Ask about discrepancies. If your paycheck does not match your records, ask how your pay was calculated and keep documentation of the response.
Finding a discrepancy does not automatically mean an employer violated the law. Wage-and-hour requirements can depend on a worker's classification, duties, compensation structure and other circumstances.
If you believe you have not received wages you earned, speaking with a wage theft attorney can help you understand your rights and determine what options may be available.
Frequently Asked Questions About Wage Theft
What is wage theft?
Wage theft is a term that generally describes situations in which workers do not receive compensation they are legally owed. Depending on the circumstances, this can involve:
- Unpaid overtime
- Minimum wage violations
- Off-the-clock work
- Improper handling of tips
- Other wage-and-hour violations
Do I automatically get extra pay for working on Labor Day?
Not necessarily. The FLSA does not generally require additional pay for working on holidays. However, covered, nonexempt employees may still be entitled to overtime if their hours exceed 40 during the workweek. Employer policies, employment agreements or other applicable laws can provide additional rights.
Can my employer retaliate against me for asking about unpaid wages?
Federal law prohibits certain retaliation against employees who exercise protected rights under the FLSA. Whether a specific action qualifies as unlawful retaliation depends on the circumstances.
Speak With a Wage Theft Attorney
Labor Day is a reminder of the value of workers and the wages they earn. When unpaid overtime, off-the-clock work or other wage violations occur repeatedly, the amount of missing compensation can add up quickly.
The Carlson Law Firm represents workers in wage-and-hour disputes. If you believe your employer failed to pay wages you earned, speaking with a wage theft attorney can help you understand your rights and determine what legal options may be available.
