It’s frustrating that hard-working Americans have to wonder why unpaid wages happen. There are numerous ways that employers commit wage theft, either knowingly or unknowingly. Employees’ rights should be protected, and you deserve all the pay to which you are legally entitled.

Rowdy Meeks Legal Group LLC prosecutes unpaid wages and other workplace disputes nationwide.

5 Reasons Why Unpaid Wages Happen

1. Payroll Errors

Mistakes in payroll processing, such as incorrect time entries or overtime miscalculations, can result in unpaid or underpaid wages.

What to Do:

• Review your pay stubs and compare them with your timesheets or clock-in records.
• Inform your HR or payroll department about the discrepancy and provide evidence (timesheets, contracts, etc.).
• Request a correction and inquire when you can expect the unpaid wages to be added to your next paycheck.

2. Misclassification of Employees

Sometimes, employers misclassify employees as independent contractors or exempt them from overtime pay when they should be classified as non-exempt, hourly employees legally entitled to overtime pay. This can lead to unpaid wages for overtime or other compensations.

What to Do:

• Check whether you are correctly classified as an employee or independent contractor by reviewing your job duties, and any employment agreement or employer pay policies.
• If misclassified, you can discuss the issue with your employer and request reclassification, but this rarely works.
• If your employer doesn’t address the issue, you should contact an employment attorney.  You could also file a complaint with the U.S. Department of Labor (“DOL”) or your state labor department if an employment attorney will not take your case.

3. Employer Financial Difficulties

If an employer is facing financial challenges, the employer might delay or miss payroll, leaving employees without their expected wages.

What to Do:

• Open a line of communication with your employer to understand the situation and when you can expect payment.
• If payment is delayed for an unreasonable amount of time, you can file a wage claim with the DOL or your state’s labor agency.
• If necessary, you should consult with an employment attorney about your options for recovering unpaid wages.

4. Overtime Pay Violations

Some employers fail to pay overtime rates for hours worked beyond 40 in a workweek, either due to oversight or intentional withholding.

What to Do:

• Keep a detailed log of your hours worked, especially any overtime.
• Compare your log with your pay stub to ensure that you are receiving overtime pay (usually 1.5 times your hourly rate).
• If you notice unpaid overtime, address it with your employer. If it persists, you should contact an employment attorney.  Again, you can file a complaint with the DOL, as overtime violations are regulated by the Fair Labor Standards Act (“FLSA”).

5. Intentional Wage Theft

Employers may deliberately underpay or withhold wages as a form of wage theft. This could include not paying for all hours worked, skimming tips, or refusing to pay the minimum wage.

What to Do:

• keep records of the hours you worked, your pay rate, and any missing payments.
• Wage theft is illegal, and you can pursue legal action to recover wages and potential damages with the help of an employment attorney.

What To Do If You Are Owed Wages

It can be stressful when your wages aren’t paid, especially when your employer has intentionally underpaid you.

An experienced employment attorney like Rowdy Meeks Legal Group LLC can assess your claim and help you navigate the complexities of recovering unpaid wages.

Learn More About Why Unpaid Wages Happen

Unpaid wages can happen for various reasons but by understanding the common causes and knowing how to document and report your case, you can take the necessary steps to recover what you are owed.

As an employee with protected rights, you deserve to get the money you are legally entitled to. Contact Rowdy Meeks Legal Group LLC to learn why unpaid wages happen and what to do.