Understanding common unpaid wages situations

All rights of workers are secured by federal and state laws. No employer can deny rightful compensation to employees. However, there are times when employers wrongfully deny the fair wages to workers. Here are some common unpaid wages situations –

Refusing to pay overtime – Employer wrongfully denies payment for overtime, which is time worked in excess of 40 hours in a workweek. Unless the employer has an exemption under the labor code, then most employees are entitled to premium pay for hours over forty, which is usually time and a half.

Refusing to pay minimum wage – This includes paying less than minimum wage.  The Federal Minimum Wage is $7.25 an hour and some states have greater protections.

Refusing to pay bonuses and commissions – Employer refuses to pay bonuses and commissions, that were pre-determined for job.  Different states have different laws regarding the commission structure and rights.  In New York for example, if commissions are not paid properly, an employee may be entitled to triple damages!  Also, certain bonuses and commissions and other forms of pay needs to be factored into the overtime calculus.

Unlawful deductions from pay – Sometimes, employers unnecessarily deduct money form a worker’s pay.

All the above-mentioned situations may indicate a violation of law. In these situations, employees should seek guidance of a professional overtime lawyer. An experienced wage and hour attorney can help the worker receive compensation for their unpaid time and work. In some situations the worker may be entitled to double damages plus attorney fees paid separately or even more!

There are several more problems that employees face on job such as working for extra time (including meal or rest breaks) and doing office’s work from home without proper compensation. All these conditions are violation of law.

Law – The Fair Labor Standards Act (FLSA) is responsible for securing the right of workers. According to this act, overtime should be one and a half times of the hourly wages of employee for work over 40 hours a week.

However, according to the federal government, it is mandatory to pay at least 7.25 US dollars per hour as of July 2009. In many states, minimum wages are higher than this rate.

Tips – In those jobs where employees get more than 30 dollars/month in tips, minimum wages are different. Other than these jobs, employer must follow the regulations of FMWA and FLSA act. If worker’s payment is not meeting the minimum level (even after including tip), then it is the responsibility of bosses to make up the difference.

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