Most employees know that wage theft could potentially happen to them, but they don’t spend much time worrying about it. They often assume it’s a fringe problem that likely doesn’t apply to their circumstances.
However, this assumption is problematic because employees may overlook clear red flags indicating wage theft. In reality, wage theft is far more common than most people realize.
Reports from earlier this year estimate that wage theft results in losses of around $482 million annually. This makes it the most common type of theft in the United States. The total economic loss from wage theft is greater than that of motor vehicle theft, bank robberies, shoplifting, home burglaries and all other types of theft combined. In this sense, the most likely entity to commit theft is not an individual, but a corporation.
What are examples of wage theft?
Wage theft can occur in many different ways. Below are some common examples:
- An employer who doesn’t pay overtime hours or who pays overtime at the standard rate rather than the required rate of 1.5 times the standard salary.
- An employer who doesn’t pay out bonuses or commissions that employees have earned.
- An employer who illegally reduces an employee’s pay rate for hours already worked.
- An employer who takes tips from employees or includes themselves in a tip pool.
- An employer who offers comp time in exchange for overtime hours but only provides one hour of comp time for each overtime hour worked.
These are just a few examples. It’s crucial for employees to stay vigilant, recognize potential red flags and understand their legal options if wage theft occurs.