Red flags that Indicate Your Employer is Stealing your Wages

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Have you ever looked at your paycheck and wondered if something wasn’t quite right? Maybe you’re working extra hours without extra pay, or your salary doesn’t match the hours you put in. This might indicate your employer is stealing your wages. This can include getting in off-the-clock work, wrong financial transactions, and even a compromised bank account in more severe cases.

If you’re dealing with something like this, you need to know about expense claims and post-shift work regulations. Ideally, if an employer requires extra effort/time, the employee should be compensated. However, most employers try to get the same amount of work done for the lowest possible pay rates

What Is Wage Theft and Why Should You Care?

Wage theft is more common than many employees realize, and it happens in subtle ways that often go unnoticed. We have several real-life wage theft stories in the U.S. These stories stand to show how big of a problem this is.

Therefore, understanding the red flags of wage theft can help you recognize when your employer is crossing the line and ensure you are receiving the wages you are legally entitled to.

Digging Deeper Into Wage Theft

Wage theft isn’t just an occasional paycheck error—it’s a serious violation of federal law. Employers who fail to pay employees their rightful wages are engaging in illegal and unethical behavior. Whether it’s failing to pay minimum wage, denying overtime pay, or making unauthorized deductions from your paycheck, wage theft robs workers of their hard-earned money.

Now, let’s take a closer look at key warning signs that indicate your employer is stealing your wages.

Major Red Flags That Indicate Wage Theft

There are several common examples that show wage theft. For instance, doing the same work for less pay because you’re promised some unrealistic promotion in the future. However, it doesn’t stop at that. herefore, here’s a quick rundown of major red flags that indicate your employer is stealing your wages.

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1. Inconsistent or Incorrect Paychecks

Imagine working tirelessly all week only to find that your paycheck is lower than expected. A missing payment, unexplained deductions, or a different pay rate than what was agreed upon could be clear signs of wage theft.

If your paycheck fluctuates without explanation, your employer may be manipulating wages to cut costs. It is their responsibility to ensure your wages are paid correctly without requiring a dispute.

Example: You were hired at a pay rate of $15 per hour, but your paycheck reflects a lower amount without any valid reason. When you bring it up, your employer brushes it off as a “calculation mistake” but never corrects it.

2. Being Asked to Work Off the Clock

Employers sometimes ask workers to handle small tasks before clocking in or after clocking out, thinking it doesn’t count as work. Whether it’s setting up for the day, cleaning up after hours, or handling last-minute requests, these are all work-related tasks that should be paid.

Example: Your manager frequently asks you to take work-related phone calls before your shift starts or after it ends, but those minutes or hours never show up on your paycheck.

3. Unpaid Overtime or Manipulated Time Sheets

Federal overtime laws require non-exempt employees to receive time-and-a-half for any hours worked over 40 per week. If your employer refuses to pay for overtime hours, adjusts your reported hours, or pressures you into not reporting them, that’s wage theft.

Example: You work 50 hours in a week, but your paycheck only accounts for 40 hours because your employer “adjusted” the records.

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4. Unlawful Paycheck Deductions

If you see deductions from your paycheck for things you never agreed to—like uniform costs, equipment fees, or even cash register shortages—your employer might be illegally taking money from your earnings. This can create a hostile work environment in some cases, putting plenty of stress on victims.

Example: You notice that every month, a small amount is deducted from your paycheck under “miscellaneous fees,” but HR refuses to provide an explanation.

5. Delays or Missing Paychecks

If you often hear excuses like “the company is going through financial struggles” or “We’ll pay you next week” when you don’t receive your paycheck on time, your employer may be mishandling payroll funds.

This is why most victims end up forming unions to protect their rights. However, business delays and additional complications, such as tax laws, can make matters worse.

Example: Your paycheck, which is supposed to arrive every Friday, is delayed repeatedly, and your employer offers no clear reason.

6. Misclassification of Employment Status

Employers sometimes misclassify workers as independent contractors or exempt employees to avoid paying overtime and benefits. If your job duties align with those of a non-exempt employee, but your employer denies you benefits and overtime, this is a major red flag. It might even prove that your employer is stealing your wages.

Example: You work fixed hours under direct supervision, but your employer insists you are an independent contractor and refuses to provide benefits.

a woman sitting at a desk working on a computer

7. Forcing Employees to Work Through Breaks

If your employer discourages or outright prevents you from taking legally required meal or rest breaks, this could be a form of wage theft. They are trying to take your employee rights away or shrink your break hours to a negligible number.

Example: You work in a retail store where your manager repeatedly schedules back-to-back shifts without allowing lunch breaks, violating labor laws.

8. Withholding Reimbursements for Work Expenses

If you are required to purchase job-related supplies, travel for work, or cover other work-related expenses, your employer must reimburse you. If they refuse, they are effectively stealing money from you.

Example: You use your personal car to make deliveries for your employer, but they never compensate you for gas or mileage.

9. Discouraging or Preventing Employees from Discussing Pay

Employers who engage in wage theft often discourage employees from discussing their wages. If you’re told not to talk about your salary with coworkers, your employer might be hiding unfair pay practices.

Example: You find out that a coworker in the same role with the same experience is making more than you, but when you ask about it, your employer warns you not to discuss wages with others.

10. Retaliation for Questioning Wages

Employers who engage in wage theft may try to intimidate employees who ask questions about their pay. If you are demoted, fired, or face negative treatment after raising concerns about wage discrepancies, that’s a major red flag.

Example: You file a complaint about missing overtime pay, and suddenly, your manager starts giving you fewer shifts or cutting your hours as punishment.

a woman holding a stack of money in her hands

What Can You Do If You Suspect Wage Theft?

If you recognize any of these red flags, take action to protect your earnings.

Document Everything

Keep records of your hours worked, pay stubs, and any work-related expenses.

Know Your Rights

Review federal labor laws to understand what you’re entitled to.

Report to HR

Bring up discrepancies with human resources and request a written response.

File a Wage Complaint

If your employer refuses to correct the issue, file a complaint with the U.S. Department of Labor or your state’s labor agency.

An employment attorney can help you take legal action against an employer engaging in wage theft. If you are wondering “how much does an employment attorney cost?” it’s not much if you choose the right professionals.

a person is holding a stack of money

Protect Your Future – Speak Up Against Wage Theft

Wage theft not only affects your income but also your future financial security. If your employer is engaging in these unethical practices, don’t stay silent. Recognizing the warning signs and taking action can help you and other employees fight back against unfair labor practices.

Your work deserves fair pay—always remember that you are entitled to every dollar you earn. If you spot any of these red flags, don’t hesitate to stand up for your rights!

Get Help with BLG

Our employment lawyers at Bourassa Law Group are here to help you through it all. All you have to do is share your legal trouble with us.

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