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

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.

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.

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!