Wage Theft

Wage theft occurs when an employer unlawfully withholds or underpays an employee's wages for the work they have performed. This can include not paying the minimum wage, refusing to pay for overtime hours, or withholding tips that belong to employees.

Example #1

An employee who works 40 hours a week at a rate of $10 per hour should receive $400 in wages. If the employer only pays them $300, that would be considered wage theft.

Example #2

An employer requiring employees to work off-the-clock without compensation is a form of wage theft.

Misuse

An example of wage theft misuse could be when an employer intentionally misclassifies employees as independent contractors to avoid paying minimum wage and overtime. This practice is unjust because it deprives workers of fair compensation for their labor and undermines their financial stability.

Benefits

Protecting against wage theft ensures that employees are paid fairly for the work they do, contributing to their economic well-being. For instance, by enforcing minimum wage laws, employees are guaranteed a baseline level of compensation for their efforts.

Conclusion

Wage theft is detrimental to workers' rights and financial security, highlighting the importance of upholding fair labor practices and regulations to safeguard employees from exploitation.

Related Terms

Minimum WageOvertime PayIndependent ContractorFair Labor Standards Act (FLSA)