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When to File an Unpaid Wages Case Against Your Employer

By Oscar McAlister posted 01-29-2021 14:25

  

Employers and employees often experience wage disputes. If they are not resolved amicably, the matter could go to court. Employers have a duty to pay the agreed-upon rate or amount, but not all companies fulfill this obligation. If you pursue legal action, you could get your outstanding pay, interest on that amount, and penalties awarded by the court. Here is some advice about filing an unpaid wages claim against your employer:

Have a contract

It is hard to prove a legal case without documentation to back up your claims. Therefore, an employment contract that stipulates your wage and pay rate for overtime makes it easy to demonstrate that the employer has not paid you the correct amount. 

Lawyers at the Felicetti Law Firm will take you through a claim for unpaid wages, even if you do not have all the necessary documents. However, their chances of success increase when they have more information at their disposal. 

Many employers enter verbal contracts regarding remuneration with employees, only to deny this afterward and not pay what they promised. 

Avoid this situation by ensuring that any agreement between yourself and your employer is reduced to writing and signed by both parties. The days of so-called ‘gentlemen’s agreements’ and handshakes are over, so protect yourself by insisting on hard copies of everything.

Overtime

Your employer should specify an overtime rate in an employment contract. Federal law stipulates that employees are entitled to overtime for every hour they work more than 40 per week. States have additional legislation that governs the payment of overtime. 

It would be to your advantage to know what overtime rates you can expect. Overall, the industry standard is time and a half, which means 150% of your standard rate. However, your employer might offer you more than that.

An employer who fails to pay employees overtime opens themselves to legal action that could end up costing them a lot more than paying workers what they are owed. Track your overtime and check wage payments to ensure that you are getting the right amount with each paycheck. This is part of maintaining a documentary record that will make proving your claim of unpaid wages easier.

What damages to claim

There are three categories of damages, as mentioned before. The first is the unpaid wages themselves. This includes all outstanding money from your regular wages and overtime that your employer has failed to pay. 

The second is interest. The state sets an interest rate on unpaid wages, and this total is added to the outstanding amount. The third is a penalty. Some state laws make employers pay penalties for not fulfilling their obligation to pay workers.

There is a fourth category of damages that you can also seek. These are the attorney’s fees, and your employer must pay these if you win the case against them.

Victimization

An employer may not harass or victimize an employee who files an unpaid wages claim. Therefore, your boss cannot demote or fire you. They cannot make your working circumstances so unbearable that you feel there is no other choice than to quit. This is called constructive dismissal, and it is illegal.

An employer might try to make you feel bad for lodging a claim, wanting to guilt-trip you into withdrawing it. If your boss wants to draw up a written agreement acknowledging that you are owed money and laying out how the matter will be rectified, consult your attorney before signing this document. A lawyer will tell you whether the agreement is bona fide and would stand up in court if your employer does not honor its terms.

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