Wage and hour violations occur across the country every day. Case in point: between 2017 and 2020, the U.S. Department of Labor and its state counterparts recovered more than $3 billion in stolen wages for workers.
Wage theft can take many forms, whether due to intentional or careless actions by employers. If you believe you have been affected by a wage and hour violation, you should speak to a lawyer at our firm, who can provide information about your right to compensation.
$3 billion in Wage Theft
A 2021 report by the Economic Policy Institute has outlined how more than $3 billion in stolen wages had been recovered for workers in the prior three years alone. These instances of wage theft occurred because of various labor violations perpetrated by employers across numerous industries then and to this day.
Such violations include, but are not limited to:
- Failure to pay the minimum wage
- Failure to pay overtime
- Meal break violations
- Illegal paycheck deductions
- Employee misclassification
The report noted that while wage theft affects millions of workers nationwide every year, these violations particularly impact workers already employed in low-wage positions.
The report cited one study where an investigation was conducted into minimum wage violations in the 10 most populous states. Because of these minimum wage violations, which are one of the most common forms of wage theft, 17 percent of low-wage employees in these 10 states were paid less than what federal minimum wage requirements dictated. In dollar figures, that translated to an annual loss of $8 billion in wages that those workers were otherwise entitled to receive.
Pursuing a Stolen Wage Claim
The Economic Policy Institute’s report cited another group of findings from the National Employment Law Project. The NELP determined that many employees are prohibited from filing a lawsuit for back wages against their employer because they were forced to sign an arbitration agreement as a condition of employment.
NELP determined that in 2019, these predatory tactics involving forced arbitration resulted in more than $9 billion in wage theft from workers who earned less than $13 per hour. This is crucial. While $3.24 billion in stolen wages was recovered for workers by the U.S. Department of Labor between 2017 and 2020, it is estimated that as many as 98 percent of low-wage workers in the private sector fall under forced arbitration agreements and do not file wage recovery claims.
While progress has been made for workers victimized by wage theft, there is still much work to be done to ensure stronger protections and enforcement against employers who continue to violate wage laws. It is illegal when an employer does not pay covered workers:
- Overtime
- Minimum wage
- Rest periods and meal breaks (of less than 20 minutes or that have been worked through)
- Withholds bonuses or commissions
It is illegal if an employer misclassifies workers as independent contractors, depriving them of pay such as:
- Overtime
- Sick leave
- Vacation time
- Healthcare benefits
Employees affected by these and other stolen wage schemes should speak with an attorney to learn their legal rights. A stolen wage claim could recover compensation for up to double the unpaid wages, interest on these back wages, attorneys’ fees, and more.
Contact an Unpaid Wage Claim Attorney
The right to fair wages is a fundamental protection afforded to workers by the federal Fair Labor Standards Act (FLSA) as well as various laws at the state level. These instances of wage theft that led to more than $3 billion in stolen wages recovered in recent years are a fraction of the losses endured by employees victimized by illegal practices by their employers.
Many employees believe that they are not entitled to overtime pay, when they actually are or may be paid less than their rightful wages due to various unethical company practices like minimum wage and off-the-clock violations.
If you believe that your employer has failed to pay appropriate wages, you should consult an experienced attorney who can delve deeper into the situation and determine whether you have a valid case. Start your free, confidential review via our chat or submit an online form to discuss your potential unpaid wage claim.
