Finding out that your employer hasn't paid you can be stressful and confusing. Whether it's a missing paycheck, underpayment, or not getting paid for the hours you worked, knowing your rights and what steps to take will help you capably handle the issue.
Unfortunately, this situation isn’t as rare as it once was. “In the last three months, my cases of employers defaulting on wages have risen by nearly 20%,” says employment attorney Martin Gasparian.
In this article, you'll find a comprehensive guide on what to do if your employer doesn't pay you, including expert advice and tips on how to navigate this situation.
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What are my rights if my employer doesn't pay me?
Knowing your employee rights is really important—even before you check your bank account and wonder, “Why haven't I been paid yet?”
The U.S. federal and state laws protect workers' rights to be paid for their labor. The Fair Labor Standards Act (FLSA) mandates that employees must receive at least the federal minimum wage and overtime pay for hours worked over 40 in a workweek, unless exempt. If your employer isn't paying you as required by law, you have the right to take action.
The federal guidelines require employers to pay their workers on a regular schedule, such as weekly, bi-weekly, or monthly. While the exact payday is left to the discretion of the employer, they are expected to pay you when they said they would. “If your employer is not paying at the payday, this is an issue that should be solved by engaging them,” Gasparian says.
Understand the different types of unpaid wages
At times, your wages might be delayed, short, or fully unpaid. Both federal and state laws provide strict regulations on the payment of employees, and companies must comply with any unpaid wage scenario.
Here are some unpaid wage types you might encounter while navigating the job market:
- Wages 100% not paid: If payday rolls around and your paycheck hasn't been deposited in your account, it’s a clear violation of your rights—and it's essential to act promptly.
- Underpaid wage: Maybe you worked 40 hours, but your paycheck only reflects 35 hours. Underpaid wage is also a violation, and you deserve to be compensated for every hour you worked.
- Wages deducted: Unauthorized deductions can lead to legal issues for the employer. Employers may deduct wages for various reasons, such as damages or shortages. However, these deductions must be lawful and agreed upon in advance.
- Late payment: In some cases, your employer might pay you late, causing significant financial stress and uncertainty. Late payments are also a breach of your employment agreement and can have legal repercussions for your employer.
- Unpaid commissions: Sales positions often come with the promise of commissions. If your employer fails to pay out these commissions, it's considered unpaid wages, and you have the right to seek those earnings.
- Unpaid overtime: Employers are required to pay non-exempt employees overtime for hours worked over 40 in a workweek. If your employer isn't compensating you for this time, they are violating labor laws.
- Misclassification: Employers sometimes misclassify employees as independent contractors when they should be classified as employees. This misclassification can lead to unpaid overtime and benefits.
- Unpaid wages upon termination: If you've left a job and your employer hasn't paid you, they are still obligated to compensate you for your work. The timeline for final paychecks varies by state.
Always consider state law variations
Laws can vary significantly from state to state. If you work in a remote setting, your contract should follow the laws of the company's location. For instance, some states require employers to pay employees for unused vacation time upon termination, while others do not. This emphasizes the importance of seeking professional legal help to understand all these particularities.
My employer didn't pay me, what can I do?
Here's a step-by-step guide to address the issue promptly and professionally:
1. Address the issue directly with your employer or HR
The first time your pay is incorrect, promptly have a calm and professional conversation with your employer or HR department. Mistakes can happen, and it’s possible that the issue is a technical oversight that can be quickly resolved. Clearly explain the problem and ask when you can expect to be paid.
2. Document all interactions
Keep a record of all your communications regarding the issue. Save emails and document any promises or deadlines given by your employer. This documentation can be crucial if the issue escalates.
3. Send a formal written request
If talking to your employer doesn't resolve the issue, send a formal written request for your wages. Outline the amount you are owed, the pay period it covers, and the steps you've already taken to resolve the issue. This can serve as evidence if you need to take further legal action.
“Retaliation for making such a report is illegal in California and many other jurisdictions,” says employment attorney Steven Chizen. “Of course, employers might still try to avoid paying you and could still try to take retaliatory actions. But the law is there to protect you in this situation, and you should talk to an attorney to determine what next steps make sense.”
4. Seek legal advice
If your employer still doesn't properly pay you after your formal request, it might be time to seek legal advice. Consult with an employment lawyer who can guide you on the best course of action based on your situation and state laws.
“There are many options depending on the specific facts,” Chizen says. “Sometimes after consulting with an attorney, it makes sense to retain the attorney and file a lawsuit. Other times, it might make sense to file a claim with a state's labor commission.”
If the company is going out of business, there may be other actions to take. “There might even be a pathway to hold the business owners responsible for wage related issues, depending on the circ*mstances,” he says.
5. File a complaint with your state labor department
You can also file a complaint with your state’s labor department or the U.S. Department of Labor’s Wage and Hour Division (WHD), if your lawyer indicates that's the right direction for your case. They can investigate your claim and take action against your employer if necessary.
FAQs
What are my rights if my employer doesn't pay me?
You have the right to be paid for all the hours you work, including overtime if applicable. Federal and state laws require employers to pay at least the minimum wage and any overtime due. If your employer doesn’t pay you, you have the right to file a complaint with your state’s labor department or the U.S. Department of Labor.
How long can an employer not pay you?
There is no specific federal timeframe for how long an employer can withhold payment, but delayed payments are generally considered a violation of labor laws. State laws may vary, and some states have specific timeframes for final paychecks. If you haven’t been paid, it’s important to address the issue promptly and seek legal advice if the problem persists.
What do you do if your employer doesn't pay you?
Start by discussing the issue with your employer. If that fails, document everything and consider filing a claim with your state's labor department or seeking legal advice.
Can you refuse to work if you haven't been paid?
Legally, you may have the right to refuse work if your employer hasn't paid you, but this can vary by state. Always seek legal advice before taking such actions.
Why haven't I been paid yet?
There could be several reasons, ranging from administrative errors to financial difficulties within the company. It's crucial to communicate with your employer to understand the issue.
How to politely remind your boss to pay you?
Send a courteous email or have a respectful conversation. Clearly state that you haven't received your payment and inquire about when you can expect it.
I didn't get my paycheck on payday. What should I do?
If you didn’t receive your paycheck on payday, first check with your employer or HR department to see if there was a clerical error. Discuss the issue calmly and professionally, and ask when you can expect payment. Document all communications. If the issue persists, send a formal written request for your wages and consider seeking legal advice or filing a complaint with the state labor department if necessary.
My employer didn't pay me for all the hours I worked. How can I proceed?
If you ended up not getting paid for hours worked, start by reviewing your timesheets and paycheck to confirm the discrepancy. Then, discuss the issue with your employer or HR, presenting your documentation. If this doesn’t resolve the issue, send a formal written request for the unpaid hours. If the problem continues, seek legal advice and consider filing a complaint with your state’s labor department.
What to do when your boss doesn't want to pay you?
If your boss is unwilling to pay you, start by documenting all communications and attempts to resolve the issue. Then, seek legal advice to understand your options, which may include pursuing legal action.
My employer didn't pay me after I quit. What should I do?
If your employer didn’t pay you after you quit, check the state laws regarding the timeline for final paychecks, as this varies. Contact your former employer to address the issue and request your final paycheck. If the employer fails to pay, seek legal advice to pursue the payment you’re owed.
Key takeaways
By staying informed and proactive, you can ensure that you receive the compensation you deserve for your hard work.
- Know your rights: Understand the federal and state laws that protect your right to be paid.
- Document everything: Keep records of all communications and attempts to resolve the issue.
Take action: If informal discussions fail, consider filing a claim with your state's labor department or seeking legal advice.
