Wage Theft: When You're Owed Money

When people hear the term wage theft, they often think of an employer refusing to issue a paycheck. While that certainly happens, wage theft is much broader than simply not being paid.

Wage theft occurs whenever an employee is not paid the wages they have legally earned. Sometimes it is the result of an honest payroll mistake. Other times, it stems from poor management, misunderstandings of labor laws, or intentional practices that save a company money at the employee's expense.

The challenge is that many employees do not recognize wage theft when it happens. They assume a few unpaid minutes here and there are insignificant, or that certain tasks are simply "part of the job." Over weeks, months, or years, those unpaid minutes can add up to hundreds or even thousands of dollars in lost wages.

Understanding the most common forms of wage theft can help you recognize potential issues and address them appropriately.

Working Before or After Your Scheduled Shift

One of the most common forms of wage theft occurs when employees perform work without being on the clock.

This often sounds harmless:

"Can you unlock the store before you clock in?"

"Can you finish stocking those shelves after you've clocked out?"

"Can you answer this customer really quick before you leave?"

If you are performing work that benefits your employer, that time is generally considered compensable. Even small tasks performed regularly can accumulate into a significant amount of unpaid work.

For example, imagine an employee spends ten minutes preparing a store before clocking in and another ten minutes cleaning up after clocking out.

Twenty unpaid minutes each day may not seem like much.

Over a five-day workweek, that's more than an hour and a half of unpaid labor.

Over the course of a year, it could amount to over 80 hours of unpaid work.

That is over 80 hours of money you are missing out on that is legally required to be paid.

Working Through Meal Breaks

Many employers provide unpaid meal breaks with the expectation that employees are relieved of their work responsibilities. Problems arise when employees are expected to continue working while technically on their unpaid break.

For example:

• Answering work phones while eating lunch.

• Monitoring customers or clients.

• Remaining at a reception desk without relief.

• Completing paperwork during an unpaid break.

• Being repeatedly interrupted to perform work.

If your meal break is consistently interrupted by work responsibilities, it may no longer qualify as an uninterrupted unpaid break under applicable laws.

Policies vary depending on where you work, so understanding your employer's expectations and your local labor laws is important. For more information, check out the Department of Labor's Wage and Hour Division.

Off-the-Clock Emails, Calls, and Messages

Technology has made it easier than ever for work to follow employees home.

For salaried employees, answering emails after hours may simply be part of the position.

For many hourly employees, however, regularly responding to work communications outside scheduled hours can create compensation issues.

Consider situations such as:

• Responding to work emails every evening.

• Joining a quick video meeting from home.

• Taking phone calls from customers after your shift.

• Completing mandatory online training outside work hours.

A single five-minute phone call may not seem important, but repeated unpaid work outside scheduled hours can become significant over time. It also interferes with a healthy work-life balance, having to be on call even after work. If your position does not explicitly state requirements for working outside of your normal scheduled hours, this can be considered a form of wage theft.

If your employer is requiring you to answer emails or phone calls regularly outside of your shift, it may be time to have the discussion about proper expectations in the workplace and ask what compensation will be considered when doing work outside of your scheduled shift.

Expanding on the training aspect, many employers require employees to attend:

• Safety training.

• Staff meetings.

• Orientation sessions.

• Continuing education.

• Compliance training.

  
  

If attendance is mandatory and directly related to your job, employees are often entitled to compensation for that time. If the employer states it is optional, you working on it on your own time is a choice and does not have to be paid. But when it is a requirement of your job duties it is required to be paid.

Continuing education for licensure that you maintain outside of work (realtor license, insurance licensure, etc) that are paid at your own expense to continue do not usually require employers to pay for time spent completing them, as they are your responsibility. However, if your employer manages licensure on your behalf, it doesn't hurt to ask if continuing education credits are handled while on the job, or if you are expected to do it on your own time.

Improper Pay Deductions

Paychecks can sometimes contain deductions that employees do not fully understand.

While many deductions are completely lawful, others may raise questions.

Examples may include deductions for:

• Cash register shortages.

• Damaged equipment.

• Required uniforms.

• Tools.

• Training costs.

• Customer walkouts.

Whether these deductions are permitted depends on federal, state, and local laws, as well as any agreements between the employer and employee. If you notice unfamiliar deductions on your paycheck, ask for an explanation rather than assuming they are correct.

If you are unsure or do not feel comfortable with the answer given by the employer, get it in writing what the deductions are for and compare it to your employer handbook or employee contract. It is expected to perform this on your own time, not on the job, when comparing the deductions and handbook because this type of investigation is not considered part of your job duties.

Another simpler but equally as affecting situation is when employers incorrectly classify workers as exempt from overtime requirements or as independent contractors instead of employees. If you signed up for a W2 position (not a 1099 or exempt position) then you have additional rights granted.

These classifications affect important rights, including:

• Overtime eligibility.

• Tax responsibilities (how much you owe vs how much you get).

• Certain workplace protections.

• Employee benefits.

These legal classifications depend on the nature of the work being performed rather than simply the title given by the employer. If your classification listed does not match what you file on taxes, or what the position advertised, it may be beneficial to reach out to your employer or human resources to verify and correct it if needed.

Always Review Your Paystub

Many employees receive their paycheck without ever reviewing the accompanying paystub. This can cause payroll errors to go unnoticed for months. By the time it is caught, undoing the error can take significantly longer and may be more difficult.

Make it a habit to verify:

• Hours worked.

• Overtime hours.

• Pay rate.

• PTO balances.

• Deductions.

• Holiday pay.

• Bonuses or commissions, if applicable.

Payroll systems are managed by people, and mistakes can happen. Don't assume malice, just be aware than some errors may happen and if they do, the sooner you catch it the better. If errors are repeated or happen frequently however, it may benefit you to reach out to your supervisor or payroll team to verify what is happening.

Keep Your Own Records

One of the simplest ways to protect yourself is to keep a personal record of your work hours. You do not need an elaborate spreadsheet. A notebook, calendar, or phone app can help you track what hours you work, and when.

If a payroll discrepancy occurs, having your own records can make resolving the issue much easier because you have documented proof of when you worked, without having to rely on potentially erroneous records.

What Should You Do If You Think You Were Not Paid Correctly?

Not every payroll issue is intentional. If you notice a discrepancy, begin by gathering the facts. Compare your paystub with your own records and identify the specific issue.

Then speak with your supervisor, payroll department, or Human Resources.

A calm conversation such as:

"I noticed my paycheck doesn't appear to include the two hours I worked on Saturday. Could we review my time record together?"

is often enough to resolve an honest mistake.

If the issue continues despite repeated attempts to resolve it internally, or if you believe your employer is intentionally withholding wages, you may need to contact your state's labor department or another appropriate government agency. Keep copies of schedules, timecards, paystubs, emails, and any written communication related to the issue, as documentation can be valuable if further action becomes necessary.

Final Thoughts

Most wage theft does not begin with an employer refusing to issue a paycheck. It often starts with small moments that employees are told are "just part of the job"—arriving a few minutes early without pay, working through lunch, answering emails after hours, or attending mandatory meetings off the clock.

Individually, these situations may seem insignificant. Collectively, they can represent a substantial loss of earned wages.

Understanding how wage theft occurs allows you to recognize potential problems early, ask informed questions, and ensure you are being compensated fairly for the work you perform.

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Up Next: Not every employee is entitled to overtime pay—but many people are unsure why. In the next article, we'll explain how overtime laws work, who qualifies, and some of the most common misconceptions surrounding overtime in the workplace.

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