What are the five most common forms of wage theft?

For many companies, paying their employees y is one of their most significant expenses, which creates an incentive to reduce employee time card hours, withdraw benefits, and lower labor costs. The term “wage theft” refers to when workers are paid less than they have legitimately earned.

Five of the most common forms of wage theft:

• Unpaid overtime: Workers are entitled to overtime pay for time worked after serving 40 hours a week unless they are classified as exempt from the Fair Labor Standards Act.
• Employee misclassification: The difference in compensation between employees and independent contractors can be substantial. Employers who misclassify workers to avoid paying overtime and benefits are breaking the law.
• Minimum wage violation: When an employer pays an hourly rate lower than the minimum wage or makes improper deductions that reduce a worker’s net salary below the minimum wage, it is considered wage theft.
• Tip Sharing Violation: Employees who receive tips depend on tips for a substantial part of their income. Their income then is reduced when employers implement payment practices that split and distribute tips to other workers.
• Unreimbursed Expenses: Some employees frequently incur costs for work-related expenses that benefit their employers, for example, transportation costs. Failure to reimburse those expenses provides an unfair gain for employers and a deduction to employee compensation that can bring them below minimum wage.

What to do against wage theft?

You can start protecting yourself against wage theft on the first day of work. Keep track of the dates you worked, the hours you worked, and the times you took your breaks. Check this information against your salary, and make sure you receive what is stipulated in your contract.

If you think you are being scammed, you can try to resolve it with your boss. If it’s an honest mistake, it could correct things. But for many employers, wage theft is part of their business model. You may be able to file a lawsuit against your employer to collect compensation for unpaid wages and additional damages with an employment attorney.