Filing a Wage Theft Claim
Wage theft occurs when an employer fails to pay workers the full compensation they are legally owed. It is the most common form of theft in America, costing workers an estimated $15 billion or more per year. Understanding your rights and the complaint process is the first step toward recovering your wages.
Common Forms of Wage Theft
Unpaid Wages
Not being paid for all hours worked
Being required to work "off the clock" before or after shifts
Not being paid for mandatory training time
Unauthorized deductions from paychecks
Overtime Violations
Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid 1.5 times their regular rate for all hours worked over 40 in a workweek. Common violations include:
Paying straight time for overtime hours
Averaging hours across two workweeks to avoid overtime
Misclassifying employees as "exempt" to deny overtime (salaried employees earning below the minimum salary threshold are entitled to overtime)
Misclassifying employees as independent contractors
Tip Theft
Employers taking a portion of employee tips
Requiring tip pooling with managers or non-tipped employees
Paying below the tipped minimum wage without meeting tip credit requirements
Not making up the difference when tips plus the tipped wage don't equal the regular minimum wage
Minimum Wage Violations
Paying below the federal minimum wage ($7.25/hour) or applicable state/local minimum wage
Not paying for all "hours worked" (including time spent donning/doffing required gear, mandatory meetings, or waiting time)
Final Paycheck Issues
Not receiving your final paycheck after termination or resignation
Most states require final paychecks within specific timeframes (immediately to 30 days, depending on the state and whether you quit or were fired)
How to File a Claim
Option 1: File with the U.S. Department of Labor (DOL)
File a complaint with the Wage and Hour Division (WHD) at dol.gov
No cost to file — the DOL investigates at no charge
The DOL can recover back wages, liquidated damages (equal to the unpaid wages), and civil penalties
You can file by phone, mail, or in person at a regional office
Option 2: File with Your State Labor Agency
Many states have their own wage and hour agencies that may offer:
Higher minimum wage protections
Stronger overtime protections
Faster processing than the federal DOL
Additional remedies (treble damages, automatic penalties)
Option 3: File a Private Lawsuit
You can sue your employer in state or federal court
Under the FLSA, you can recover back wages plus an equal amount in liquidated damages (effectively double damages)
Attorney's fees are recoverable if you win
Many wage theft attorneys work on contingency
Class actions and collective actions can be filed on behalf of all similarly affected workers
Statute of Limitations
FLSA claims: 2 years from the date of the violation (3 years if the violation was willful)
State claims: vary by state — typically 2-6 years
Don't wait — file your claim as soon as possible to preserve your rights.
Retaliation Protections
It is illegal for your employer to retaliate against you for filing a wage claim. Protected activities include:
Filing a complaint with the DOL or state agency
Discussing wages with coworkers
Participating in an investigation
Filing a lawsuit
If your employer retaliates, you may be entitled to additional damages, reinstatement, and attorney's fees.
Documentation Tips
Keep your own records of hours worked (use a personal time-tracking app)
Save pay stubs, time sheets, and any employment documents
Document communications about pay and hours in writing (email, text)
Note the names and contact information of coworkers who can corroborate your claims
Disclaimer: This guide is for informational purposes only. Wage and hour laws vary by state. Consult an employment attorney for advice specific to your situation.