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3 ways employers steal wages from workers

On Behalf of | Jun 30, 2023 | Employment Law

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Many businesses have to cut corners to meet consumer expectations and eventually make a profit. Some of these strategies can go against the law, such as stealing wages from employees, which can severely harm employees looking to make a fair and honest wage.

Employees have a right to fair compensation for their work. However, many people don’t realize that they’re victims of wage theft until it’s too late. Here are a few examples of wage theft you should be aware of:

1. No overtime pay

A lot of employees work extra hours to fulfill deadlines. Employees who put in extra time are entitled to one and a one-half times their regular pay. Employers may try to withhold overtime pay from employees or claim that an employee had no right to work overtime. 

2. Misclassification

Employers may misclassify workers as independent contractors to avoid paying minimum wage. Employees who are misclassified as contractors may also lose out on overtime pay, health insurance and workers’ compensation benefits. Employers may also misclassify workers as exempt, which limits their right to overtime pay. Many employees don’t realize that their employment status was misclassified. 

3. Unlawful deductions

Employers may attempt to deduct money from employees’ paychecks. This may occur, for instance, if an employee needs a work uniform and their employers withhold pay to cover the cost. Alternatively, an employer may not have paid an employee’s business expenses, such as gas or rental costs.

It’s important to respond quickly after finding out that you’re a victim of wage theft. Employers may use tactics to continue to withhold wages from employees. You may need to reach out for legal help to learn your options.