Wage theft is a shockingly common problem, costing employees billions of dollars every year across the United States. Sadly, lost wages are just the start of the problems for employees, who may find themselves struggling with legal and financial problems as a direct or indirect result of this type of malfeasance. But what exactly is wage theft, and how does it harm employees?
What is Wage Theft?
In simple terms, “wage theft” refers to any situation where an employer fails to pay an employee what they are legally owed. This can come from intentionally depriving an employee of their earned income, or it can come from failing to compensate an employee for expenses the employer is supposed to cover. Regardless of what form this theft takes, however, the financial harm goes beyond simple lost income.
What Does Wage Theft Look Like?
Wage theft can take many potential forms. These include, but are not limited to:
- Failing to pay minimum wage
- Unpaid or underpaid overtime
- Stolen tips or commissions
- Taking illegal deductions from employee salaries
- Employee misclassification
- Failing to compensate travel expenses
- Refusing to grant earned PTO
How Can Wage Theft Cause Harm?
The most obvious way that employees are harmed by wage theft is due to lost income, making it harder for them to pay their bills. On top of that, they may need to take on more debt to cover their expenses, and suffer penalties in the form of late fees or increased interest. In the case of employee misclassification, they may even face legal problems if they suddenly find themselves owing thousands of dollars in unpaid Social Security taxes.
What Should You Do?
If you have been the victim of wage theft, an employment law attorney can help you to recover what you are rightly owed. They can help you review your legal options, and craft a strategy that best suits your needs. The sooner you get in contact with them, the sooner they can get to work for you.
Steven Mitchell Sack, the Employee’s Lawyer, is a New York employment lawyer with more than 46 years’ experience handling the many aspects of employment law. His new book, “Fired!: Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” is available in hardback, and contains valuable advice on dealing with employment and labor law issues. To purchase the book, feel free to contact Steven Sack at 917-371-8000 or visit the website at legalstratpub.com. To inquire about a legal matter, please feel free to contact attorney Steven Sack at 917-371-8000 or stevensackatty@hotmail.com.
