Wage Theft in Colorado: Real Stories and How to Fight Back

Currency, notepad, pen and a calculator used to total wages owed after wage theft in Colorado.

Wage theft occurs when employers fail to pay workers the full wages they’ve earned. While this issue is widespread across the United States, wage theft in Colorado has become an increasingly urgent concern. It can manifest in various ways, such as not compensating for overtime, withholding tips, or paying less than the minimum wage. In Colorado, wage theft impacts thousands of workers annually, particularly those in industries like food service, construction, and retail.

This issue isn’t just about lost wages—it’s about fairness, dignity, and the right to be compensated for your labor. Let’s explore real-life examples of wage theft and what Colorado’s laws do to protect workers.

Real Stories of Wage Theft in Colorado

Juana’s Experience: Unpaid Wages and the Struggle to Support Her Family

Juana, a single mother working as a cook at a restaurant, faced long hours and inconsistent pay. She worked 11-hour days for $7.50 an hour without benefits or paid leave. Her employer failed to pay her on time, eventually owing her nearly $3,000 for six weeks of work. The financial burden of supporting her family forced Juana to rely on the part-time wages of her two teenage sons. After realizing her employer would not fulfill the payment, she decided to leave the job and pursue other opportunities. She continues to search for better work, hoping to one day receive the wages she earned.

Unpaid Overtime: The Case of a Sandwich Shop Assistant Manager

An assistant manager at a sandwich shop worked long hours, often 12 to 16 hours a day, overseeing operations and training new employees. Despite her heavy responsibilities, the employer misclassified her as exempt from overtime pay, violating wage laws. The employer claimed she was salaried and not entitled to overtime, even though her duties mirrored those of her hourly coworkers. After a legal battle, the assistant manager received over $40,000 in back wages, proving that employers cannot misclassify workers to avoid paying overtime.

Employee Misclassification: Alvaro’s Fight for Fair Pay

Alvaro, a dishwasher at a family-style restaurant, was paid below minimum wage and denied overtime pay. His employer tried to classify him as an independent contractor to avoid legal obligations, but Alvaro’s duties—washing dishes in the kitchen—made it clear he was a regular employee. After filing a wage complaint, Alvaro’s case was settled, and he received the wages he was rightfully owed. This case shows how some employers misclassify workers to evade laws meant to protect employees’ rights.

Illegal Paycheck Deductions: Workers Facing Unfair Charges

A group of Polish cleaning women working for a company in Chicago was forced to live in overcrowded dormitory housing, with $300 deducted from each paycheck for rent. Similarly, workers in Houston had $1,900 taken from their pay for a notary fee that was never explained. Some employers have even deducted fines for trivial reasons, like slamming doors or being late for work. These illegal deductions exploit vulnerable workers, leaving them with little recourse to challenge such unfair practices.

These stories highlight the various ways employers exploit workers through wage theft, misclassification, and illegal deductions, severely impacting their financial stability and well-being.

Denver’s Growing Efforts in Tackling Wage Theft

Wage theft is a persistent problem across the United States, but in Denver, local efforts have ramped up to address this issue. Denver’s minimum wage has steadily increased in recent years, but despite these improvements, many workers, especially in industries like construction, are still denied their legally entitled pay. Research conducted by organizations like the Colorado Fiscal Institute has shown that wage theft affects millions of workers across the state, with the impact particularly felt in low-wage sectors.

In response, the Denver Auditor’s Office has been ramping up its focus on investigating wage theft cases. The office has become a critical ally for workers who are facing unscrupulous employers who violate labor standards by not paying workers their full wages. For workers in Denver, this means more support in bringing violators to justice and recovering unpaid wages. These efforts are essential in a city where both the workforce and the need for wage protection are growing rapidly.

Wage theft is especially rampant in industries such as construction, where workers are often at risk of exploitation. General contractors and other employers sometimes misclassify workers, delay pay, or refuse to pay for overtime hours worked. This is where understanding your rights is crucial. In Denver, labor laws ensure that workers are paid fairly for all their hours, including overtime, and that they receive their legally entitled wages on time.

Workers in the construction industry are often employed on a project-by-project basis, and their pay can sometimes be inconsistent or incomplete. However, Colorado law is clear about the rights of workers in this field. For example, any employee working over 40 hours a week should receive overtime pay at 1.5 times their regular hourly rate. If this isn’t happening, workers are encouraged to contact the Denver Auditor’s Office for help in investigating these wage theft cases. Enforcement of labor laws, along with restitution for stolen wages, is key to supporting fair practices and ensuring workers are not taken advantage of by employers trying to cut corners.

Fighting Back Against Wage Theft in Denver

As more workers join the Denver labor force, especially in industries like construction and service, it’s essential to understand that wage theft is not only an individual problem but also a broader issue of social justice. The widespread nature of wage theft affects millions across Colorado, and Denver is no exception. Victims of wage theft can seek legal action to recover the money they are owed. This is important not just for personal financial stability but also for maintaining fair working conditions for everyone.

For workers, knowing how to recognize wage theft is the first step. If you suspect your employer is withholding pay, misclassifying your position, or violating wage laws in any way, it’s crucial to document everything. With the support of the Denver Auditor’s Office, workers can pursue restitution and ensure that unscrupulous employers are held accountable. Taking action against wage theft is not just about reclaiming lost wages; it’s also about setting a standard for fair labor practices that benefits all workers in the Denver area.

How Colorado Law Protects Workers Against Wage Theft

Colorado’s Wage Protection Rules and the Colorado Wage Act provide strong legal protections for workers. Here’s what you need to know:

Minimum Wage Laws

Employers must pay workers at least the Colorado minimum wage. For tipped employees, employers must ensure the total hourly wage, including tips, equals or exceeds the minimum wage. Failure to do so constitutes wage theft.

Overtime Rules

Colorado’s overtime laws require employers to pay overtime compensation at 1.5 times the employee’s regular rate for any hours worked over 40 in a workweek. Non-payment of overtime wages is a common form of wage theft.

Fair Labor Practices

Under both state and federal laws, employers must follow fair labor practices. This includes proper classification of workers. Misclassifying employees as independent contractors can result in unpaid wages and lost benefits.

Pay Period Requirements

Employers must pay employees on a regular schedule, known as the pay period. Delayed or missed payments violate Colorado labor laws.

Job Duties and Overtime Eligibility

An employee’s classification impacts their eligibility for overtime pay. Employers must correctly classify non-exempt employees to ensure they receive overtime compensation for overtime hours worked. Misclassification leads to owed overtime pay.

How to Fight Wage Theft in Colorado

If you believe you’re a victim of wage theft, you can take action. Here’s how:

1. Document Everything

Keep records of your hours worked, pay stubs, and job duties. Documentation strengthens your case if you need to file a wage claim.

2. Understand Your Rights

Learn about Colorado’s overtime laws, minimum wage laws, and federal fair labor standards. Knowing your rights empowers you to recognize when something’s wrong.

3. File a Wage Complaint

The Colorado Department of Labor and Employment (CDLE) accepts wage claims for unpaid overtime, owed overtime pay, and minimum wage violations. You can also seek legal advice from employment law experts like Bourassa.

An experienced attorney can help you recover unpaid wages and hold employers accountable. Wage theft is illegal, and you don’t have to fight alone.

What Compensation Can You Receive?

Victims of wage theft may recover:

  • Unpaid wages for hours worked

  • Overtime compensation for unpaid overtime hours

  • Penalties for delayed payments

  • Legal fees in some cases

Employers who violate fair labor practices may face additional fines and penalties.

Conclusion: Take Action and Know Your Rights

Wage theft robs workers of their hard-earned money. It affects families, communities, and trust in the workplace. If you suspect wage theft, you have the right to fight back.

Colorado’s laws exist to protect employees, ensuring they’re paid fairly and on time. The Bourassa Law Group can help you navigate the complex legal process and reclaim the wages you’ve earned. Don’t let employers take advantage of your hard work—take action today.

Contact us now for a free consultation and secure the justice you deserve.

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