Step-by-Step Guide: How to Sue an Employer for Unpaid Wages
Have you ever worked a shift, put in the hours, and then been shorted on your paycheck? It's a frustrating situation; unfortunately, it happens more often than you might think.
Unpaid wages can significantly impact employees, leading to financial strain and emotional stress. Workers must be aware of their rights and take action when faced with wage violations. Everyone has options.
Keep reading to learn more about unpaid wage claims, including what a wage claim is, how to sue an employer for unpaid wages, and when seeking legal help might be the best course of action.
TABLE OF CONTENTS
What is a wage claim?
A wage claim is a formal legal claim filed by an employee against their employer. In it, the employee alleges that the employer has failed to pay all wages they are owed. A wage claim is an important resource for protecting workers’ rights and ensuring fair pay practices in the workplace.
This can include situations like not being paid overtime or minimum wage, working off the clock, unpaid bonuses and commissions, having deductions taken out of your paycheck that weren’t authorized, or not receiving your final paycheck.
Suppose you find yourself in situations like this. In that case, you can file a wage claim in court or with a government agency (such as the Industrial Commission of Arizona or the U.S. Department of Labor’s Wage and Hour Division) to try to get the money you are owed.
Causes of unpaid wages
1. Employer negligence
Employers may unintentionally fail to pay employees for hours worked due to poor record-keeping or payroll system malfunctions.
2. Failure to pay overtime for hourly workers
Hourly workers who regularly work beyond their scheduled hours are legally entitled to overtime pay when they have unpaid wages for time worked beyond 40 hours in a workweek. However, we have helped people whose employers might try to avoid paying them for overtime by manipulating schedules or pressuring employees not to claim overtime.
It is important to note that this is the same situation with some employers who can try to pressure employees to answer emails, take calls, or complete tasks outside their scheduled work hours or during unpaid breaks or lunches.
3. Misclassification of employees
Misclassifying employees as independent contractors can lead to unpaid wages, as contractors are not entitled to the same benefits and protections as employees. This includes minimum wage, overtime, or other benefits required by law.
4. Wage theft
This involves practices such as withholding payments, not paying for all hours worked, or violating minimum wage laws. Employers may engage in wage theft intentionally, leading to financial losses for employees and legal repercussions for them.
5. Off-the-clock work
Working off the clock refers to any work done by an employee that is not compensated. It can include having to perform work duties before your shift starts, having to perform work during unpaid lunches or breaks, or having to work past the conclusion of your shift without compensation.
It often occurs in industries where the worker may have a scheduled shift, but the work does not allow the worker to leave immediately. For example, if you take calls on a phone, you may have to prepare for your first call before the start of your shift but may not be clocked in until you take your first call. This time is often compensable, especially when you’re routinely having to spend time performing those duties off the clock.
Can you sue for unpaid wages?
The quick answer is yes. You can absolutely sue for unpaid wages.
Every employee has the right to be compensated fairly for their time and labor, and federal and state laws exist to protect those rights. You can take legal action if your employer fails to pay you the minimum wage or overtime, fails to pay you for tips that you earned, depending on the circumstances, and fails to pay you for time worked off-the-clock work.
This applies whether the issue stems from wage theft, misclassification, or other practices that lead to unpaid wages.
How much can you sue for when pursuing unpaid wages?
There is no straightforward answer since many factors can influence the amount you can sue for. These include some of the following:
The amount of unpaid wages
The length of time the wages were unpaid
The number of hours worked without pay
The state laws where you live
The employer’s willingness to settle
Additional damages such as interest and penalties.
The attorney’s fees.
“We invite you to read our experience in unpaid wage litigation to understand how we might help you.”
How can I sue an employer for unpaid wages?
1. Seek legal assistance if necessary
If your case is more complex, you detect other violations at play, or you seek significant compensation beyond back pay, discussing it with an attorney will allow a full assessment. This will help to get your case on track.
An attorney can assess your case, navigate the legal complexities, determine the best legal strategy, represent you in court, and ensure you recover the maximum compensation you deserve.
Remember that we are here to help you! Contact us now, and we will provide valuable guidance and help determine the strength of your case.
2. Understand your rights as an employee
Familiarize yourself with the Fair Labor Standards Act (FLSA) and your state’s labor laws regarding minimum wage, overtime pay, and other wage-related issues.
3. Gather evidence of unpaid wages
It can help if you have detailed records of your work hours, including dates, start and end times, and any breaks taken. However, it is important to mention that this documentation is not mandatory to pursue a claim in many cases. It is great if you have it, but if you don’t, we can probably still help you prove your claim.
Federal law requires employers to keep accurate records of all the time you work. If you worked off the clock or your employer’s records are inaccurate because they fail to account for all the time you worked, your own estimate of the amount of time you worked during a typical week should be sufficient evidence to support your case. Be sure to read our FAQ page for more information.
Another action that can help is collecting all available pay stubs to demonstrate discrepancies between what you were paid and what you were owed. We also recommend reviewing a written employment contract for details regarding your compensation and any overtime pay policies as well.
In addition, if you have it, you might want to compile any emails, texts, or other forms of communication with your employer documenting your concerns about unpaid wages.
4. Alternative to suing
You can file a claim with the Industrial Commission of Arizona or your state’s agency that helps with unpaid wages. However, please note that this has several potential downsides:
Limited scope of claims. While the Industrial Commission of Arizona can handle wage claims, its jurisdiction is limited to specific circumstances. For example, if your employer owes you more than $5,000.00 in unpaid wages, you cannot file an unpaid wage complaint with the Industrial Commission of Arizona.
Recovering for all the wage violations at issue. Typically, the Industrial Commission of Arizona will investigate the unpaid wage claim, focusing on getting you paid what you say you are owed. However, other issues are often at play beyond simply getting back wages for missing paychecks. In addition to not receiving a paycheck, your employer may also be violating federal and state wage laws in other ways.
A lawyer can help you make sure you are recovering the maximum amount of wages you are owed, including many wage violations that may occur after a proper analysis of the situation by a lawyer.
You can file a lawsuit in court and you don’t have to pursue your unpaid wage claims through a government agency at all.
Here is what the process may look like.
Consult with an attorney. You can get legal advice from an experienced labor and employment attorney to assess the strength of your case, understand your legal options, and guide you on the legal procedures.
Prepare and file the lawsuit. Your attorney can draft a complaint detailing the allegations and the details of the claim. After that, the complaint will be filed with the appropriate court. Finally, you will serve your employer with a copy of the complaint and a summons to appear in court.
Pre-trial process. The employer should file a response to the complaint, either admitting or denying the allegations. Next, both parties exchange information and evidence, which may include interrogatories, depositions, and document requests. Then, either party may file motions to dismiss the case for summary judgment or other procedural requests.
Settlement negotiations. The parties may agree to participate in mediation or arbitration to try to reach a settlement. Note that the vast majority of cases settle before going to trial. If an agreement is reached, both parties will sign a settlement agreement outlining the terms, including the payment of unpaid wages.
Trial. If no settlement is reached, the case proceeds to trial, during which both parties present their evidence and arguments. The judge or jury will render a verdict; if successful, the court may order the employer to pay the owed wages, potentially including back pay and other compensation.5. File a lawsuit in court and court process.
What do I get if I win my lawsuit?
An employee who successfully obtains unpaid overtime or the minimum wage under federal law may be entitled to liquidated damages, which is double the amount of the unpaid wages owed.
In Arizona, an employee who is owed back wages under Arizona law may be entitled to treble damages, which is three times the amount owed.
When to seek an unpaid wage claim attorney?
While you can navigate the process of recovering unpaid wages on your own, there are situations where seeking an unpaid wage claim attorney becomes highly beneficial. It can ensure you effectively pursue your claim and navigate the complexities of labor laws.
You should consider seeking an unpaid wage claim attorney in any of the following circumstances:
Complex or large claims. If you are owed a large sum in unpaid wages, overtime, commissions, or bonuses, an attorney can help ensure you recover the maximum amount. A lawyer can also be helpful if the unpaid wage issue you’re experiencing impacts other employees because they may be able to pursue your claims on your own behalf and on behalf of the other employees impacted.
Complex employment terms. It is highly recommended that you hire an attorney for complex employment contracts, commission structures, or bonuses.
Employer retaliation. If your employer retaliates against you for seeking unpaid wages, an attorney can help protect your rights and potentially seek additional damages for retaliation.
Lack of response from the employer. If your employer ignores your requests for unpaid wages or refuses to negotiate, an attorney can apply legal pressure and represent you in negotiations or court.
Potential for higher recovery. Attorneys can help you recover statutory damages, penalties, interest, and attorney’s fees.
Benefits of hiring an attorney
Legal expertise. Attorneys like us at Frankel Syverson PLLC deeply understand labor laws and can identify violations you might not be aware of and that a government agency may not investigate.
Negotiation skills. We can effectively negotiate settlements with employers.
Representation in court. If your case goes to trial, we can (and will) represent you and present your case professionally.
Peace of mind. Thanks to our legal expertise, you can be sure that you are in good hands, reducing stress and allowing you to focus on your life and work.
How to choose the right attorney?
You should seek an attorney with experience in labor and employment law and handling unpaid wage claims.
Remember to have an initial consultation with a labor and employment lawyer to discuss your specific situation and receive professional advice on whether legal representation is necessary.
Don’t hesitate to reach out to us if you feel overwhelmed!
FAQ
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You can seek assistance from Legal Aid Organizations, contact government agencies like the U.S. Department of Labor, file a claim in small claims court (if applicable), represent yourself in court, or contact a lawyer who works on a contingency fee.
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In most circumstances, an employee is not required to have documents to support their claim for unpaid wages. However, if your employer has failed to pay you all the wages you’re owed and their records do not show the actual amount of wages you were due, your own testimony about how much you worked and the wages you’re due could be sufficient evidence to prove your claim.
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Talk with a lawyer if you’re concerned about your employer retaliating against you for pursuing a claim for unpaid wages. There are laws that protect employees from retaliation arising from claims for unpaid overtime and minimum wage.
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You should hire a labor and employment lawyer with experience involving claims for unpaid wages. Labor and employment lawyers can help you navigate the complexities of wage laws, assess the validity of your claim, and represent you in legal proceedings to recover the wages you are owed.
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Yes; undocumented workers can make legal claims for unpaid wages in the United States. Employers cannot use a worker’s immigration status as an excuse to avoid paying earned wages.
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This depends on the type of wages you’re owed. For example, a claim for unpaid overtime or minimum wage under the Fair Labor Standards Act allows employees to pursue wages owed for two years back from when a claim is filed or three years if the violation is willful.
Under Arizona law, a claim for unpaid wages must be brought within one year. Because all claims have statutes of limitations that restrict the time within which they must be brought, it’s always best to speak with a lawyer or otherwise pursue your claims as soon as possible.
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Yes, time limits exist and vary by jurisdiction. It’s crucial to act promptly.
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No, an employer generally cannot withhold wages as a form of discipline or punishment for poor job performance. Doing so could even result in employers losing the exemption from paying salaried employees overtime.
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