We go to work every day, understanding that we will be reimbursed for the hours of service we provided to our employer. For most people, those expectations are met upon receiving a paycheck.
But what if that paycheck isn’t an accurate reflection of the number of hours you worked, or the compensation is less than what you agreed upon? It could be that you are a victim of wage theft.
Robbing workers and their families
Wage theft is a serious problem in Texas. Going back to 2019, over $5.7 million in back wages are owed to Texas employees in one county alone (Travis County). Vulnerable workers are usually targeted, such as younger and older workers and immigrants. Wage theft financially strains them and their families and makes it difficult for them to make ends meet.
Wage theft comes in multiple forms, including:
- Unpaid overtime: The Fair Labor Standards Act (FLSA) states that employees who work more than 40 hours per week are entitled to overtime, usually 1.5 times their hourly wage. Employers may try to circumvent this rule by underreporting hours worked or asking employees to work off the clock. Employees are commonly asked to come in early to set up before clocking in or stay after they clock out to clean up, without pay.
- Misclassification: Employers sometimes misclassify their employees as independent contractors, which are not covered by overtime laws or minimum wage requirements. Employers are also exempt from paying their portion of Social Security and Medicare taxes.
- Illegal deductions: Some deductions are legal, such as taxes or contributions to certain benefits (healthcare, 401(k)). However, some employers may make unauthorized deductions for things such as breakage or cash drawer shortages.
- Paying less than minimum wage: The minimum wage in Texas is $7.25. There are some employers who pay less.
If you suspect you are a victim of wage theft, it’s imperative that you track your hours worked, along with your pay stubs. You have rights under the U.S. Department of Labor, and there are resources available to ensure those rights are protected.