Can I Sue My Employer for Paying Less Than Minimum Wage?

by Natalie Grace, Demand Media

Submit your pay stubs and records of hours worked with your wage claim.

Unless an exception applies, your employer must pay you at least the federal or state minimum wage, whichever is higher. If you qualify for minimum wage and your employer pays you less than the mandated amount, you can file a wage claim or lawsuit against your employer.

Covered Employees

The laws surrounding who qualifies for minimum wage are vast and complex. To know whether you meet the requirements, consult your regional U.S. Department of Labor Wage and Hour Division or the state labor department. For example, if you are disabled and your employer has a special minimum wage certificate that covers disabled employees, then your employer can pay you less than the federal minimum wage, which is $7.25 per hour, as of date of publication. If you are under 20, your employer can pay you at the reduced hourly rate of $4.25 during your first 90 days of employment. If you are a tipped employee, separate minimum wage rules apply.

Federal Wage Claim

To file a wage claim to recover unpaid wages under federal law, consult your regional wage and hour office for its procedures. File the claim within two years of when the unpaid wages were earned. To allow the department enough time to finish the investigation before the two years expire, file the compliant as soon as the violation happens and not more than 18 months after it occurred. You may file the claim in person or by mail. In your complaint, include your pay rate, frequency of payment, and an explanation of the alleged violation.

State Wage Claim

If you were paid less than the minimum wage required by state law, file a wage claim with the state labor department according to its procedures. For example, under the Texas Minimum Wage Act, employers in Texas must pay covered employees no less than the federal minimum wage of $7.25 per hour. If your employer failed to pay you at least that amount, file a wage claim with the Texas Workforce Commission within two years of when the unpaid wages were earned.

Court Action

If you are unable to recover unpaid wages from the federal or state labor department, file a private lawsuit in a small claims court against your employer. If your complaint is for more than the maximum allowed by a small claims court, contact the superior court in your county for its procedures on recovering unpaid wages. File the lawsuit by the time frame required under state law. Notably, if you disagree with the state labor department’s determination of your wage claim, you might be able to file an appeal with the superior court. If you and other employees were not paid at least minimum wage, you may consult an attorney on filing a class action suit.

Employer Penalties

If the federal labor department agrees with your claim, it can order your employer to pay you back wages plus liquidated damages. If your employer intentionally broke the law, it can face criminal prosecution plus a fine of up to $10,000 for the first violation. State penalties vary; however, they generally include paying back wages plus liquidated damages and applicable court costs and attorney fees.

References (9)

Resources (3)

About the Author

Natalie Grace has been writing since 2000, specializing in topics related to employment policies. Grace attended Miami Dade College and has more than 10 years of experience in payroll-and-benefits administration, human resources and accounting. Her corporate experience includes working as a payroll-and-benefits administrator for a petroleum company.

Photo Credits

Comstock/Comstock/Getty Images

Patriot News

Thursday, July 18, 2013