Sometimes your paycheck may be short, delayed, or you may not receive it at all. What can you do if you don’t get the compensation you expected?
Employer Payment Principles
Employers must follow federal and state laws when paying employees. These principles outline what you can expect in your paycheck:
Minimum Wage
The Fair Labor Standards Act (FLSA) establishes the minimum wage (with some exceptions) at $7.25 per hour. Some locations have a higher minimum wage. When a higher rate exists at the state, county, or city level, employers must pay it.
Regular Pay
Employees are paid based on hours worked or salary. These classifications depend on the type of work being done and how they are compensated. The number of hours worked per week will be determined by the employer.
Overtime Pay
When an employee works overtime, they may be entitled to additional pay beyond their regular wage. Most hourly employees must receive time and a half – 50% more than their regular rate of pay – if they work more than 40 hours.
Wage Supplements
Some employees may be eligible for additional payments beyond their regular salary. These payments vary based on company policy or the employee’s contract. Types of wage supplements include:
Bonuses
Commissions
Expense reimbursements
Holiday pay
Paid sick leave
Paid time off
Personal leave
Severance pay
Tips
Holiday pay
Final Pay
Upon termination of employment, your final paycheck must include all earnings due, including regular pay, bonuses, commissions, and expense reimbursements. Depending on company policy and state law, your final paycheck may also include payment for any unused paid time off.
When Employers Must Pay You
Employees are typically paid on a weekly, biweekly, or monthly basis, depending on state law and company policy. There are no federal guidelines requiring paychecks to be issued on a specific schedule, but most states have regulations that dictate how frequently employees must be paid. Employees may be paid more often than state law requires.
Additionally, some states require final paychecks to be issued immediately or shortly after termination. For example, California and Colorado require immediate payment if the employee is terminated.
Types of Unpaid Wages
There are various circumstances under which an employee may not receive part or all of the wages expected, including not receiving a paycheck, receiving a short paycheck (such as not receiving overtime or paid leave), not being paid commission or bonuses or tips, being paid an incorrect amount, or not receiving a final paycheck after employment ends.
Reasons for Not Receiving Pay
The simplest reason for not receiving the expected pay is an error. When your paycheck is not accurate, it may be due to a mistake in payroll reporting or processing, which should be easy to rectify. In other cases – for example, if the employer does not have sufficient funds to cover payroll or if your pay has been cut – correcting the issue can be more complicated.
What to Do If You Don’t Get Paid
The first step to take if there is an issue with your pay (or if you didn’t receive a paycheck at all) is to talk to your manager, payroll department, or human resources department. There may be a mistake or miscommunication, and they should be able to provide guidance on the issue and when you can expect to receive your pay.
It is recommended to
The Society for Human Resource Management (SHRM) requires that employees explain their complaint in writing so that investigators can understand the issue and work to resolve it. If that is not possible, the person receiving the complaint should write it down.
The employee should be informed of the decision regarding their complaint as soon as possible and told when to expect payment.
Document Gathering
If an issue persists after the initial conversation with your employer, it is important to provide information about the amount you expected to receive. Gather documents to support your claim, including your work schedules, pay stubs, direct deposit information, company payroll policies, and details of what you are missing.
Keep track of your earnings. Resolving payroll issues will be easier if they occur.
If speaking to your employer does not work, you may need to file a complaint. Having this information readily available will make this easier.
How to File a Complaint
If you cannot resolve your complaint directly with your employer, the Department of Labor (federal and/or state) may be able to assist you.
The Wage and Hour Division of the U.S. Department of Labor can help you regarding unpaid wages related to the Fair Labor Standards Act (FLSA), including overtime and minimum wage. Your state’s labor department may also assist you regarding unpaid or withheld wage claims and wage supplements.
Information You Need to File a Complaint
To file a complaint, you will need to provide the following information:
- Your name
- Your address and phone number
- The name of the company
- The address of the company
- The company phone number
- The name of the manager or owner
- The type of work you performed
- How and when you were paid
- Details of what you did not receive, including unpaid or short wages, illegal deductions, wage supplements, minimum wage, and overtime
Additional information such as copies of pay stubs, direct deposit records, timesheets, or other information about the employer’s payroll policies and practices will help expedite your claim.
Wage and Hour Division of the U.S. Department of Labor
For complaints and information regarding Fair Labor Standards Act issues such as minimum wage or overtime, you can contact the Wage and Hour Division office to inquire about the law or file a complaint. You can also call the Wage and Hour Division toll-free hotline: 1-866-4US-WAGE (1-866-487-9243), Monday through Friday from 8 a.m. to 8 p.m. Eastern Time.
Your State Labor Department
For state assistance, contact your state labor department. They will be able to advise you on how to assist you and what you will need to do to file a complaint.
Legal Consultation
Depending on the amount owed to you, you may also want to seek legal advice on the best way to pursue the claim.
For those who cannot afford to hire an attorney, there is a program at the American Bar Association that provides free lawyers for low-income clients, including online services.
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Sources:
- U.S. Department of Labor. “Minimum Wage.”
- U.S. Department of Labor. “Overtime.”
- New York State Department of Labor. “Unpaid/Wage Withheld and Wage Supplements.”
- Paycor. “Paid Time Off Laws by State.”
- Society for Human Resource Management. “What issues should we consider when deciding on salary frequency?”
- U.S. Department of Labor. “Wage Requirements in the States.”
- U.S. Department of Labor. “Final Paycheck.”
- NOLO. “Chart: Final Paychecks for Departing Employees.”
- Society for Human Resource Management. “How to Resolve a Wage Dispute.”
- U.S. Department of Labor. “Information You Need to File a Complaint.”
Source: https://www.thebalancemoney.com/what-to-do-if-your-employer-doesnt-pay-you-5524905
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