Wage theft is something that needs to be taken seriously by both employers and employees. After all, it is the most common type of theft in the United States, leading to hundreds of millions of dollars in losses.
In some cases, employers commit wage theft intentionally. In other cases, they make a mistake and may not even realize there is an issue. Below are key pieces of advice for those on both sides of this equation.
Employers must understand the law
For employers, the main priority is to understand exactly what the law states and what requirements they have. One example of wage theft is paying less than minimum wage, while another is failing to pay time and a half for overtime. Employers must remember that they have to meet these standards in all cases, and they cannot take steps to get around them.
For instance, state and federal minimum wages do not always match, so an employer may be tempted to pay the federal minimum wage without realizing they are actually obligated to pay the higher of the two. In such cases, they may need to pay the state minimum wage instead.
Employees must understand their rights
For employees, understanding the law is important, but they also need to know what rights they have if they realize they have been treated unfairly. Some employees assume there is nothing they can do, or they worry about retaliation. However, they may have legal options to claim the money they are owed, and retaliation—such as firing a worker for reporting unpaid wages—is also an illegal violation of their rights.
Wage and hour issues can lead to significant conflicts, and both employers and employees must know what legal steps to take.
