Buzz
At Mytour, we highly recommend thoroughly checking every paystub, even if your pay is directly deposited. It might seem excessive to examine each detail, but errors can happen, no matter how large or small the company.
While pay discrepancies are usually unintentional, there are darker situations that could be occurring, such as wage theft.
According to a recent survey by TSheets by QuickBooks, 13% of participants reported not being paid for hours worked beyond their scheduled shifts. This issue was more prevalent among women, with 16% reporting nonpayment, compared to 9% of men.
So, what does wage theft actually look like? During your job orientation, you might have been warned about how employees could commit wage theft (for example, asking a colleague to clock you out late so you can leave early). However, it’s often harder to recognize when the employer is the one at fault.
What does wage theft look like?
Aaron Holt, a labor and employment attorney at Cozen O'Connor, stated that for wage theft to truly qualify as theft, it must be intentional. "A payroll glitch or an honest mistake in calculating wages doesn't meet the threshold for intentionality," he explained. More often than not, the issue arises from how an employer classifies you as an employee or calculates overtime pay.
However, there are some clear warning signs you should be aware of:
You receive varying explanations for why your pay is incorrect.
You’ve asked for a review of your pay, but your boss ignores you.
Your manager tells you to work off the clock.
You weren't paid for overtime hours worked.
Your pay is constantly wrong, even after addressing the issue with your employer.
If you notice any of these issues, it’s time to ask questions.
What to do if your paycheck isn’t right
If you spot something wrong with your pay statement or receive conflicting details about your compensation, Holt advises reaching out to your Human Resources department. "Simple communication with your employer often yields better results than assuming wage theft occurred when a payroll error is found," he shared.
If you're unable to get answers and suspect something is off, review your employee handbook for a “safe harbor” policy, which might let you file a complaint about incorrect payment practices. "Most employers also have policies that protect employees from retaliation when they file a legitimate complaint," Holt said, meaning you should be confident that raising a concern won’t lead to discipline or termination.
Employees in the United States, regardless of citizenship status, are protected under the Fair Labor Standards Act (FLSA). Each state also has its own labor laws, which tend to be more robust than the national standards, according to Barry Janay, a New York-based attorney. The FLSA sets the federal minimum wage, overtime rules, employer requirements for employee time and pay records, and child labor regulations. The Department of Labor enforces the FLSA.
When to enlist outside help
If your employer isn’t providing answers, head to the Department of Labor’s Wage and Hour Division (WHD) to locate the nearest office in your state. Alternatively, you can call 1-866-487-9243 to connect with your local office. The WHD will look into the matter. If your employer is found guilty of knowingly violating the FLSA, they could face a fine of up to $1,000 per violation, and you may be entitled to recover up to three years’ worth of unpaid wages. In some instances, as Holt noted, the employer could even face criminal charges.
You also have the right to take legal action against your employer for unpaid wages. However, if you go this route, the WHD will not pursue recovering those wages in its investigation. “Going to court should always be a last resort because it’s a hassle. But if your employer is uncooperative and truly stealing from you, legal action might be your only option,” Janay explained.
One advantage if you decide to sue your employer: While you may need to pay attorney fees upfront, you can usually have those costs reimbursed by the employer as part of the legal process.
