CashoutGlossary / Wage theft
Wage theft
A common name for an employer not paying the wages or tips you're owed, such as unpaid overtime, a misused tip credit or managers taking tips.
Wage theft is the everyday name for an employer not paying what wage law requires. Under the FLSA, the forms tipped workers run into most often include:
- Overtime on the wrong rate: overtime figured on a $2.13 cash wage instead of the full minimum wage. See overtime.
- Taking tips: employers, managers and supervisors can't keep any portion of employees' tips, including from a tip pool.
- A tip credit without notice: before taking a tip credit, your employer has to tell you the cash wage, the tip credit amount, and that you keep all your tips except in a valid pool.
- Unpaid time: covered employees must be paid for all hours worked, including time the employer allows you to work, such as side work before you clock in.
What you can recover: under the FLSA you can sue for back wages plus an equal amount in liquidated damages, and attorney's fees and court costs. The deadline is generally 2 years, or 3 years for a willful violation, so don't sit on it. You can also file a confidential complaint with the Department of Labor or your state labor department, and your employer can't retaliate against you for it.
Your best evidence is your own record. Log every shift's hours and tips, keep your pay stubs, and compare them. The tip log template and the tipped overtime calculator help you check the math.
Related terms
Fair Labor Standards Act (FLSA) · Department of Labor (DOL) · Overtime · Tip pool · Tip credit
