Paycheck mistakes are widespread. Most of the time, these problems may be addressed and fixed with a simple visit to the Human Resources department. However, if this occurs frequently, there might be a more sinister explanation.
It is not uncommon for businesses to use unethical or illegal techniques to cut costs. According to research conducted by the Economic Policy Institute, wage theft alone costs employees about $8 billion each year. Although this issue exists across many industries, it is especially prevalent in low-wage positions.
Protect yourself and your coworkers from pay theft. Learn about the various ways employers conduct wage theft. Knowing more about them makes it easier to spot problematic practices. Consult New York employment law attorneys for more information.
Understanding wage theft
Wage theft occurs when an employer fails to properly compensate an employee for their work. It takes numerous forms, including paying less than the minimum wage, neglecting to pay overtime, forcing off-the-clock employment, and making unlawful deductions.
Wage theft is a big issue in the United States, costing employees an estimated $50 billion annually in missed pay. Workers in low-paid industries are the most vulnerable to wage theft.
Employees are protected against wage theft by federal, state, and municipal laws. These rules also enable employees to reclaim stolen earnings from their employers.
How common is wage theft?
Wage theft is surprisingly widespread. The Economic Policy Institute estimates that wage theft costs workers $50 billion each year. Let us compare wage theft to other types of theft: the total amount of stolen earnings is more than 100 times the cost of every robbery in the country.
How much pay theft do authorities capture each year? It is only a fraction of the billions taken from labor. From 2017 to 2020, authorities recovered $3 billion stolen from employees. But billions more go unrecorded.
Where can you report wage theft?
Wage theft victims may file a claim with the Wage and Hour Division of the federal Department of Labor. In addition, you may file with your state’s Department of Labor.
You may schedule a consultation with a wage theft lawyer. A wage theft lawyer may help you gather evidence, file a lawsuit, and establish your case.
Can you sue a company for wage theft?
Yes, you may sue a firm for wage theft. A wage theft lawyer in your state may advise you to file a lawsuit under state law.
A lawyer can also assist you in filing a complaint with the federal Wage and Hour Division of the Department of Labor and the state Department of Labor.
If you decide to engage a lawyer, the federal Fair Labor Standards Act and many state labor laws compel your employer to cover your attorney expenses if you win your case.