Common Wage Law Issues

When you work for an employer, you expect fair compensation for your time and labor. State and federal labor laws protect workers with minimum wage and hour protections. Unfortunately, some employers ignore wage laws and exploit workers by paying less than they deserve. Common wage law issues include unpaid overtime, minimum wage violations, and employee misclassification.

Many states have additional wage law protections that go beyond federal labor laws. For wage and hour complaints, contact a local employment lawyer for legal advice.

Understanding Common Wage Law Issues

Workers have many issues with employers trying to violate labor laws. Common worker issues include unsafe workplaces, denied workers’ compensation, and whistleblower retaliation. Some of the most widespread worker violations involve wage complaints. Wage law issues include failing to pay workers fairly and violating state and federal law. Common wage law issues include:

• Failure to pay the minimum wage
• Unpaid overtime
• Failing to give break time
• Requiring work off the clock
• Misclassifying workers as independent contractors
• Not paying commission
• Payroll record-keeping

Federal and state laws regulate wage law issues for most workers. Labor laws establish minimum standards and give workers a cause of action for violating wage and hour laws. Under federal law, the Fair Labor Standards Act (FLSA) regulates minimum wage, overtime, and child labor laws. The Wage and Hour Division of the U.S. Department of Labor (DOL) enforces federal labor laws.

Many of these wage and hour laws do not apply to exempt workers. Salaried exempt workers generally include administrative, executive, and professional employees. However, exempt employees must earn a minimum weekly salary to qualify.

Under state law, some states give workers greater protections than federal law. To understand wage law issues in your state, talk to a local labor law attorney.

Minimum Wage Violations

The minimum wage is the minimum amount an employer can pay a worker. The federal minimum wage is $7.25, and it has not been updated since 2009. A number of states follow the federal minimum for worker pay rates, but most states have higher minimum wage rates. When there is a difference between federal, state, and local minimum wages, workers generally get a better rate.

Workers can file a wage theft complaint against employers for underpayment. Minimum wage violations allow workers to recover their hourly wages, additional damages, and legal fees.

Unpaid Overtime

Overtime violations are similar to minimum wage violations. The FLSA provides workers with time and a half beyond 40 hours in a workweek. Overtime pay includes any work outside the office or remote work. Some states have additional overtime protections, like overtime on Sundays or holidays.

Rest and Meal Breaks

Federal law does not require paid meal breaks for workers. When an employer provides short breaks, this time is generally included in an employee’s total hours. Employers who have unpaid meal breaks cannot require employees to do work during their unpaid break time.

Many states require minimum break periods depending on the number of hours worked. For example, California requires one unpaid 30-minute meal break after working 5 hours or more. Workers who work 4 hours or more get a paid 10-minute rest break.

Misclassifying Workers

An employer can attempt to misclassify workers to avoid certain wage and hour laws. The two most common types of employment misclassifications include:

• Employee vs. Independent Contractor
• Exempt vs. Nonexempt Employee

Independent contractors are not subject to most state and federal employment laws. Employers can misclassify workers to make them buy their own uniforms, pay below minimum wage, or fail to provide health care benefits. Just because your employment contract says you are an independent contractor does not mean it is true. It depends on the type of work and your independence.

Employers may offer workers a salary and classify them as exempt from wage and hour laws. Exempt employees don’t get protections for minimum wage, overtime, and rest and meal breaks. Employers can misclassify workers as exempt to avoid these labor law protections. Salary or job title alone does not make you exempt from state and federal labor laws.

Not Paying Commission

Many sales workers have disputes with their employers over not paying sales commissions. Sales commission agreements can vary by individual and industry. Some of the most common sales commission wage issues include:

• Unclear sales commission calculations
• Delays in paying out commissions
• Commission clawbacks
• Lack of transparency

Sales commission agreements are very fact-specific. If you suspect your employer is withholding sales commissions, talk to an employment lawyer about how to get the money you earned.

Prevailing Wage Rates

The Davis-Bacon Act requires construction workers to get the local prevailing wage for federal construction projects. This ensures contractors and subcontractors pay workers a fair prevailing rate and fringe benefits. Prevailing wage determinations depend on the geographic area, type of construction, and labor classification.

Some contractors can misclassify workers or give them the wrong job classification to avoid paying the prevailing hourly rate. Contractors can try to conform to a new labor class at a lower pay rate on the job site. Contact a labor law attorney if your employer violates prevailing wage laws.

Steps To Resolve Wage Law Issues

Worker paychecks often seem lower than they should be. Paystubs are not always simple to understand. There can be deductions for state and federal taxes, payroll deductions, and health insurance. If you have problems with your paycheck, review your records to ensure you understand your total hours and deductions.

Contact your employer to see if there are any differences between your records and their payroll records. If your employer gives you the runaround, it may be time to talk to a wage and hour lawyer. Your attorney can file a complaint with your state agency or the DOL.If you win your case, you can get unpaid wages, additional damages, and back interest. The court can also order your employer to pay your legal costs. If your employer isn’t paying you fairly, talk to an employment lawyer who understands common wage law issues.