Filing a Wage Theft Claim

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.