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Unpaid Wages Lawsuit

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Under specific federal employment laws, the government strictly enforces the payment of wages. You will need to confront your manager or your employer if you experience any issues getting paid the correct hourly wage or working overtime hours that were not compensated. Employers can be held legally accountable if they do not resolve your issue.

According to the Fair Labor Standards Act (FLSA), employees who have unpaid wages from their employers are offered remedies, and the employers are also punished for their refusal to pay. Underpaid workers may also work together to ensure that employers recognize overtime laws, no matter how small the underpayment for an individual might be.

Our unpaid wage lawyers at The Eichholz Law Firm have a solid understanding of labor laws. We can help walk you through the unpaid wages lawsuit process. You have a right to receive payment for the hours you have worked, and the employer should be held accountable if they won’t pay you for your time.

What are Unpaid Wages?

Unpaid wages is a term used when an employer does not compensate employees. When an employee renders a service to a business or person, they are entitled to fair compensation under federal law. Federal law mandates that the minimum wage be set at $7.25. Anyone who works for a set period in an agreed-upon manner deserves to be paid at least the minimum wage.

When an employee does not get paid within a reasonable timeframe, that money is considered unpaid wages.

Common Causes of Unpaid Wages Lawsuits

Unpaid wage violations are not limited to an employer refusing to give an employee a paycheck. It may come in different forms as well.

Minimum Wage Violations

Unpaid wages can manifest themselves as minimum wage violations. Some states like California have a higher minimum wage rate than the federal minimum wage. The law indicates the higher rate of the two shall be applied. If a company does not pay you the minimum wage, you may be entitled to unpaid wages.

Underpaying Service Workers

Workers in the service industry must also reach the minimum wage threshold. However, they can be paid at a lesser hourly rate as long as their tips help them reach minimum wage. If an employee does not reach the threshold, employers must increase their wages to make up the difference. This may also be classified as unpaid wages.

Breach of Contract

If an employee leaves a company, the final paycheck should include compensation for all the time worked. A bounced check or underpayment could result in an unpaid wages claim. A breach of contract may also include such things as severance, unused vacation pay, and any relevant commissions that were not paid.

Misclassification

Employees who are considered independent contractors do not have the same protections by law. However, if an employee is incorrectly classified as an independent contractor exempt from overtime pay, the employee may be entitled to receive that pay.

Recovering Unpaid Wages

Under the FLSA, there are several ways an employee can recover overtime or minimum wages, and there are different remedies for each method:

  • Back wage payments may be supervised under the Wage and Hour Division (WHD).
  • If an employer violated the statute willfully, a suit could be brought against your employer through the Secretary of Labor for back wages and liquidated damages equal to a back pay award, which doubles the damages.
  • The employee could also file a personal case for liquidated damages and back pay, including court costs and attorney’s fees. If the employee was already paid back wages under the WHD’s supervision or the Secretary of Labor has already filed a case to recover their wages, they cannot file a personal lawsuit against the company.
  •  An injunction may be obtained by the Secretary of Labor to restrain anyone from violating FLSA, including withholding overtime pay and proper minimum wage.

Methods of recovery of unpaid wages, and other remedies that could be awarded to employees who can successfully prove a violation, vary from state-to-state. Contact the agency in your state that handles labor violations for more information. We have a complete list of state government agencies on our website.

Unpaid Wages Lawsuit Retaliation

An employer may not retaliate against an employee who files a wage and hour case. It is illegal should they attempt to do so. Retaliation can include demoting or firing an employee, reducing their hours, assigning a less than desirable shift, decreasing their job duties, or giving a false performance review that negatively affects an employee’s position.

Employers are not allowed to retaliate against you or fire you if you are part of a protective class or are engaging in protected activities, including:

  • Complaints about potential FLSA abuses, including unpaid wages
  • Speaking up about discrimination or harassment
  • Taking protected leave
  • Becoming pregnant
  • Having a disability or illness an employer could accommodate
  • Filing a worker’s compensation claim or reporting a work injury
  • Participating in a grievance or complaint process
  • Joining a union
  • Whistleblowing

If you believe your employer has retaliated against you, you have several options. You can follow the reporting policy set forth by your employer, which could involve speaking with the company’s HR department or a manager. It is crucial that you document all of the steps you have taken.

Often, the issue can be handled internally, but if your employer does not correct or acknowledge the suspected wrongdoing, other outside options are available to you, such as:

  • If your issue deals with possible FLSA abuses, such as unpaid overtime or minimum wage, you can file a complaint with the US Department of Labor’s Wage and Hour Division.
  • If your issue deals with possible discrimination, you can file a charge with the Fair Employment Practices Agency or the Equal Employment Opportunity Commission.
  • You can also file an unpaid wage lawsuit against your employer.

Wage Theft

Some cases we have handled involve wage theft, which gives employers a variety of ways to deny you pay.

This type of theft is widespread among various lines of work and is also quite alarming. The Wage Theft Prevention and Wage Recovery Act proposed by Congress found that workers lose over $8.6 billion on average from wage theft every year. In addition to employees, it negatively affects working families across the United States. The economy is also damaged by wage theft, as it impacts tax revenues and social service funds.

Wage theft is not only illegal, but it is often associated with discrimination, which we have fought against in many different cases. According to Congress, women experience wage theft more often than men. Foreign-born workers and African-Americans faced this same obstacle. You may also face other disputes, including workers’ compensation with your employer.

Wage theft laws are in place in states and counties all across the country to prevent or limit wage theft. These regulations can vary, depending on the state or county you live in, but they are necessary because there are many different forms of theft.

Some employers will attempt to find ways to avoid these laws, which is why you need to have a qualified unpaid wages lawyer who has a solid understanding of wage theft laws and can protect you if theft occurs.

Getting Help From an Unpaid Wages Lawyer

Workplace lawyers can give you options to challenge your employer’s illegal activity. They can also discuss whether your case is worth pursuing, in addition to figuring out if your employer has violated a state or federal law.

Your Options

If an employer violates wage and hour laws, an employee will typically try to sue the employer to receive compensation. More often than not, the employee may have other options in some situations. Depending on the state you live in, you can file an unpaid wages lawsuit against your employer through your state’s labor department. They will issue a finding on your claim by holding a hearing, a quicker and less expensive alternative to a lawsuit. However, there are several caveats a lawyer may point out to you, such as limiting the amount of damages you can recover or foreclosing the option of a lawsuit entirely.

You could also attempt to negotiate a settlement of your wage claim by contacting the employer informally. An unpaid wages lawyer can compare all of these options so you will be able to make a sound decision.

Cost/Benefit Assessment

A lawyer can offer you an analysis regarding the likelihood of you successfully prevailing in any of the options mentioned above, including the associated costs for undertaking each option. Your unpaid wages lawyer will discuss what you may be able to recover in damages and any legal fees you may have to pay to obtain a settlement.

Damages in an Unpaid Wages Lawsuit

Damages, by definition, is the amount of money you can recover in a wage lawsuit or claim against an employer. If you win your case against the employer, any damages you may receive will fall into several categories.

Unpaid Wages

You will be entitled to any wages you did not receive. Employees who are successful in a lawsuit or wage claim will be awarded the wages that their employer refused to pay, including unpaid overtime. If you were paid regular wages for your overtime hours, the court will grant you the difference.

Interest

At a rate set by law, you will then receive an interest award on unpaid wages. Under state law, the interest rate is fixed for any overtime or unpaid wages you are owed. You could also recover a lump sum called liquidated damages instead of interest. Liquidated damages pertain to money that is set in advance by the law that is awarded to employees. If your employer did not act in good faith, the law may double the unpaid wage amount owed to you as liquidated damages.

Attorney’s Fees

Your employer may also be required to pay your attorney’s fees if you win your unpaid wages lawsuit, including any costs associated with pursuing legal action.

Contact an Unpaid Wages Lawyer Today

If you were not treated fairly by your employer for any reason regarding hours worked or wages paid, you should contact an experienced, qualified wage lawyer at The Eichholz Law Firm.

Contact us for a free case consultation.   

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