Wage theft covers everything from unpaid overtime to off-the-clock work and withheld final paychecks. Federal and state laws protect most employees, and there are free ways to file a claim.
Federal basics
The Fair Labor Standards Act sets a federal minimum wage of $7.25 an hour and requires overtime at one and a half times the regular rate for hours over 40 in a workweek for covered, non-exempt employees. Many states and cities set a higher minimum wage, and some have stronger overtime rules.
Common forms of wage theft
- Unpaid overtime or paying "straight time" for extra hours.
- Working off the clock before, after or during breaks.
- Misclassifying employees as independent contractors or as exempt from overtime.
- Illegal deductions or tips taken by the employer.
- Not paying a final paycheck on time.
Exempt vs. non-exempt
Salary alone does not make someone exempt. To be exempt from overtime, an employee must meet salary requirements and perform specific kinds of duties. Job titles do not control. Many misclassified workers are owed back pay.
How to recover unpaid wages
- Keep records of your hours, pay stubs, schedules and messages.
- Raise the issue in writing with your employer.
- File a complaint with the U.S. Department of Labor's Wage and Hour Division or your state labor agency. Both are free.
- Consult an employment attorney, since many take wage cases on contingency and the law may require the employer to pay your legal fees if you win.
- Mind the deadline. Federal claims generally must be brought within two years, or three if the violation was willful, and state limits vary.
Frequently asked questions
Can my employer retaliate if I file a complaint?
No. Federal and state law prohibit retaliation for asserting wage rights.
Do tipped workers get overtime?
Yes, tipped employees who are covered by the law are entitled to overtime, calculated on the regular rate rather than the lower cash wage alone.