What counts as wage theft?
Wage theft is any situation where an employer fails to pay workers what they are legally owed. Common forms include: paying below minimum wage; failing to pay overtime for hours over 40 per week; not paying for all hours worked (including pre-shift and post-shift activities); illegally deducting from paychecks; not paying the final paycheck on time; misclassifying employees as independent contractors to avoid wage laws; and stealing tips.
What federal and state laws protect against wage theft?
The primary federal law is the Fair Labor Standards Act (FLSA), enforced by the U.S. Department of Labor's Wage and Hour Division (WHD). The FLSA sets the federal minimum wage ($7.25/hour) and requires time-and-a-half pay for overtime. Most states have their own wage and hour laws with higher minimum wages and additional protections — California, New York, and Washington have some of the strongest state wage theft laws.
How do I file a wage theft complaint with the Department of Labor?
File an online complaint at dol.gov/agencies/whd/contact or call 1-866-4-US-WAGE (1-866-487-9243). You can also visit your local WHD office. Provide: your name and contact information (kept confidential if you request); your employer's name, address, and phone number; your job title and type of work; the dates worked; your hourly rate or salary; and a description of the wage violation.
How do I file a wage theft complaint with my state labor agency?
Most states have a labor department or industrial commission that handles wage claims separately from the federal DOL. State agencies can often recover wages faster than the federal WHD for state-law violations. Search "[your state] wage claim" to find your state's labor commissioner or wage board. Some states allow online filing; others require a paper form mailed or faxed to a regional office.
What is the statute of limitations for a wage theft claim?
Under the FLSA, you have 2 years to file a complaint or lawsuit for most wage violations, or 3 years if the violation was willful. State statutes of limitations vary: California — 3 years (4 years for written contract violations); New York — 6 years; Texas — 2 years. File as soon as you discover the violation — time runs from the date of each underpayment, not just the most recent.
What evidence do I need to prove wage theft?
Key evidence includes: pay stubs and paychecks; bank records showing deposits; timesheets, time clock records, or punch cards; your schedule and shift records; emails or text messages about hours worked; your offer letter or employment contract; any written policies about pay; and your own contemporaneous records (calendar, notes, phone log) showing hours and days worked. Start keeping records from your first day.
What can I recover if I win a wage theft claim?
Under the FLSA, you can recover: all unpaid wages (back pay); an equal amount as "liquidated damages" (effectively doubling your recovery) unless the employer proves good faith; attorney fees and court costs. Many state laws provide additional remedies: California allows waiting time penalties (up to 30 days of final pay); New York allows 100% liquidated damages plus attorney fees; some states allow triple damages for willful violations.
Can my employer retaliate against me for filing a wage theft complaint?
Retaliation for filing a wage complaint is illegal under the FLSA and most state laws. Prohibited retaliation includes: firing or demoting you; reducing your hours or pay; giving you negative performance reviews; threatening or harassing you; or taking any adverse action because you filed a complaint or assisted an investigation. Document any retaliation immediately and report it to the DOL or your state labor agency as a separate complaint.
Can I sue my employer directly in court for wage theft?
Yes. You can file a civil lawsuit in federal or state court without going through an administrative agency first. Under the FLSA you can sue on behalf of yourself and other similarly situated employees (collective action). Many wage theft cases are brought as class actions when the same violation affected many workers. You typically have the same time limits as for agency complaints (2–3 years federal, varies by state).
What is misclassification and how does it relate to wage theft?
Misclassification occurs when employers label workers as independent contractors (or "1099 workers") who are legally employees. Because independent contractors are not covered by minimum wage and overtime laws, misclassification allows employers to avoid paying overtime, benefits, and payroll taxes. If your employer controls how, when, and where you work and what you do, you are likely an employee regardless of what your contract says.
What is an off-the-clock work violation?
Off-the-clock work violations occur when employers require or allow employees to work without recording the time or receiving pay. Common examples: requiring employees to arrive early or stay late without pay; working through unpaid meal breaks; answering emails or calls after hours without compensation; and mandatory unpaid "training." Under the FLSA, all time "suffered or permitted" to be worked must be compensated — even if the employer did not explicitly ask for it.
How are tip credits and tip pooling regulated?
Under the FLSA, employers can pay tipped employees as little as $2.13/hour if tips bring total pay to at least the federal minimum wage — this is called the tip credit. If tips fall short, the employer must make up the difference. Mandatory tip pools that include non-tipped workers (managers, cooks) who do not customarily receive tips are illegal under federal law. Many states prohibit the tip credit entirely and require the full minimum wage before tips.
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