Wage Theft is a Big Problem: An Overview of Common Examples
According to research cited by the Economic Policy Institute (EPI), employees in the United States lose out on more than $50 billion per year due to wage theft. It is a very serious problem. At Poulos LoPiccolo, we fight hard to combat wage theft. Our wage and hour lawyers handle the full range of claims in New Jersey. Here, our Monmouth County wage theft lawyer highlights some of the most common examples of this employment law violation.
Unpaid Overtime
Non-exempt employees are owed a minimum wage under the Fair Labor Standards Act (FLSA) and New Jersey state wage and hour law. One of the most common forms of wage theft is an employer’s refusal to pay overtime. Under federal and New Jersey law, most employees must receive time-and-a-half for hours worked beyond 40 in a week. Unfortunately, some employers misclassify workers as “exempt,” require off-the-clock work, or simply refuse to track overtime hours. Failure to pay the right overtime wage is a form of wage theft.
Sub-Minimum Wage Payment
Another widespread example of wage theft involves failure to pay the required minimum wage. In New Jersey, the minimum wage is higher than the federal rate, and employers are legally required to comply with whichever standard benefits workers most. Some businesses try to avoid compliance by paying in cash at lower rates, manipulating time records, or using “training periods” as an excuse for underpayment. It is the New Jersey state minimum wage that matters and it is well-beyond the minimum mandatory federal requirement.
Unlawful Deductions
Some employers withhold wages outright, whether by delaying paychecks, refusing final pay after termination, or deducting unlawful “fees.” Examples include docking pay for uniforms, equipment, or mistakes made on the job. In more serious cases, workers may complete entire shifts or projects only to be denied payment altogether. New Jersey law requires timely payment of all earned wages. An improper deduction is a form of wage theft.
Worker Misclassification
A worker’s right to wages is derived from his or her status as an employee instead of an independent contractor. A worker in New Jersey who has been misclassified may be denied access to the full and proper wages and benefits that have rightfully been earned. While some independent contractor arrangements are legitimate, misclassification often occurs in industries such as construction, delivery, and home health care, where employers exert significant control over the worker’s schedule and duties. It is important to remember that worker misclassification may be a form of wage theft in New Jersey.
Contact Our New Jersey Wage Theft Attorney for a Confidential Consultation
At Poulos LoPiccolo PC, our New Jersey wage and hour lawyers handle the full range of wage theft cases. If you or your loved one was the victim of wage theft, we are here to help. Call us now or contact us online for a fully confidential consultation. Our firm handles wage theft cases in Monmouth County and throughout all of New Jersey.
Source:
epi.org/publication/wage-theft-2021-23/
