It happens when employers fail to pay employees what they are owed.
Wage theft is an issue that affects millions of workers across the country. It’s estimated that over 20 billion dollars are stolen each year by employers who fail to pay their employees correctly. Wage theft is also known as “wage slavery” because it’s a form of modern slavery where workers are forced to work without being paid fairly.
Wage theft is illegal under federal law and state laws. However, there are loopholes in the direction that allows employers to get away with stealing wages. There are more than 100 different types of wage theft that occur every day. This article will explain the different types of wage theft and how you can protect yourself against it.
What are the Types of wage theft?
1) Failure To Pay Overtime Wages
When your employer fails to pay overtime or minimum wage for hours worked beyond 40 per week, the employee should be compensated at time-and-a-half rates. This includes any unpaid tips too.
2) Misclassification Of Workers As Independent Contractors
If you have been misclassified as an independent contractor but work full-time for someone else, then you may not receive all of the benefits of employment such as health insurance, retirement plans, etc. The company could even claim that you don’t qualify for unemployment benefits if you quit. You could lose out on thousands of dollars in back pay and penalties.
3) Nonpayment For Work Performed Or Materials Provided By Employees Or Subcontractors
If you provide materials or services to help complete a job, and the employer doesn’t compensate you for them, then he’s violating labor law. He might argue that these items were provided free, which means you aren’t entitled to payment.
4) Unpaid Minimum Wage Violations
Your employer must ensure that you’re receiving proper minimum wage payments, including overtime, sick leave, vacation pay, holiday pay, etc. Any violations here would result in severe consequences for both parties involved.
5) Failing To Provide Accurate Time Records
Employers need to keep accurate records of the number of hours worked by their employees. They must accurately record the amount of money earned from those hours.
What qualifies as wage theft?
Wage theft is a term used to describe situations where employers fail to pay their employees fairly. It’s a way of saying that workers aren’t paid what they deserve. Wage theft can happen in different ways.
Here are some examples of wage theft:
1. Not paying overtime.
2. Paying less than minimum wage.
Is wage theft illegal?
Yes, but not always. There are several reasons why employers might cheat their employees. These include:
• They don’t know any better. Some bosses don’t understand the importance of fair compensation. Others think that they won’t get caught.
• They feel like they don’t owe anyone anything. Many businesses believe that they own their employees and therefore do whatever they please.
• They don’t care.
How much is wage theft a year?
The National Employment Law Project estimates that about 20 million people experience wage theft annually. This means that at least one out of five American workers has experienced wage theft at some point during their career. The NELP says that if all forms of wage theft were added together, it would be equal to almost half of the entire U.S. economy! That’s why we need to take action now so that no worker ever experiences wage theft again. According to the Department of Labor, the average amount lost due to wage theft was $3,859 per worker last year.
What is the punishment for wage theft?
If your employer steals from you, then he should face the consequences. However, most states have very weak penalties when it comes to wage theft. For example, California only imposes fines on companies that steal wages up to $50,000. If you want justice, you must file a complaint with local authorities. You may even consider filing a lawsuit since many cases end up getting settled out-of-court.
How do you solve wage theft?
Here are three things you can do right now to stop wage theft before it happens to you:
1) Be aware of common scams.
2)You shouldn’t assume that everything is okay. Even though you signed a contract promising certain rights, you still have to watch out for sneaky tactics. It would help if you were looking for whether your boss tells you to sign blank papers or gives you something else to fill out.
3)Keep track of everything you earn. Make sure that you document every penny earned through tips, commissions, bonuses, etc.
4)Talk to other coworkers about your situation. Share information with them so that everyone knows what’s going on.
5) Don’t accept substandard treatment. Tell your supervisor immediately whenever something goes wrong. Do NOT tolerate unfairness.
How do you report wage theft?
There are two main types of reporting systems: online and paper-based. Both methods work pretty well.