How to Navigate Unpaid Wage Recovery Legal Processes

Looking to get the money that is owed to you by your employer?

Every year, millions of employees suffer from unpaid wages. From overtime violations, minimum wage violations, to tip theft… Getting your money back seems like an impossible task.

Here’s the thing:

The path of unpaid wages recovery appears daunting to most people. The legal process is difficult to understand. That’s why so many employees simply give up and walk away.

The good news?

The unpaid wage recovery legal process does not have to be a difficult experience. By following the correct procedure and being strategic, workers can get back what they are owed. Professional unpaid wage recovery services have been set up to help employees get back stolen wages through the legal process.

In this article, you will learn:

How Wage Theft Happens and Your Rights
The Exact Recovery Process Step By Step
Legal Options Available To You
How To Build A Solid Case

How Wage Theft Happens and Your Rights

Wage theft is when an employer does not pay workers the full amount they are legally entitled to.

It is no small issue, as the Economic Policy Institute estimates that wage theft costs American workers $50 billion a year. That is more than robberies, burglaries, and motor vehicle thefts combined.

Holy smokes right?

Wage theft comes in many forms, including:

Minimum wage violations (being paid less than the minimum)
Overtime theft (not being paid time-and-a-half for hours over 40)
Off the clock work (being forced to work before/after shifts without pay)
Tip withholding (employers keeping tips instead of paying them to workers)
Misclassification (being improperly classified as an independent contractor)

Here’s something important to note:

Employees are protected from these actions under Federal and state labor laws. The Fair Labor Standards Act (FLSA) lays out the basic rules about wages that employers must follow. It’s important that employees know their rights under the law before moving forward.

The Exact Recovery Process Step By Step

Ready to take action? Let’s go over exactly how unpaid wage recovery services and the legal process works.

Step 1: Document Everything

First, collect all evidence that you have available. This includes:

Pay stubs/wage statements
Time records/work schedules
Employment contracts
Emails/messages to employer about pay
Names of coworkers who can confirm your claims

Documentation is key to any case. The more evidence you have, the better the chances of a positive recovery outcome.

Step 2: Calculate the Amount Owed

The next step is to figure out exactly how much money is owed to you. In order to do this, you will have to compare records of hours worked to pay received.

Pro Tip: Many workers grossly underestimate the value of the wages they are owed. An employee making minimum wage working just 30 minutes a day without pay loses more than $1,400 a year. Add that up and it’s a huge loss!

Step 3: File A Complaint

There are several ways that employees can file wage claims. It is possible to file a complaint with the U.S. Department of Labor’s Wage and Hour Division. This federal agency is in charge of investigating and recovering back wages from employers.

State labor departments are also a good avenue to file complaints. Some states have stronger wage and hour laws than what the FLSA provides.

Step 4: Legal Action

If a complaint to the Department of Labor or a state agency does not work, legal action is the next step. Workers can file lawsuits in court against employers to recover stolen wages as well as additional damages.

Something very important to keep in mind…

The FLSA allows workers to seek double damages in successful wage theft claims. This means that workers are able to receive 100% of wages owed plus an additional equal amount and attorney’s fees.

Legal Options Available To You

There are several legal options available to workers who are owed unpaid wages. Here are the main avenues you can use.

Department of Labor Complaint

Filing a wage complaint with the DOL is free of charge and doesn’t require an attorney. The Wage and Hour Division will investigate your claim and can order employers to pay back wages. The DOL recovered over $1 billion in back wages for over 615,000 workers from 2021 through 2024.

State Labor Agency Claims

State labor departments have wage enforcement mechanisms. They may have additional worker protections on top of the FLSA. The process and timelines of these claims vary by state.

Private Lawsuits

Workers can sue employers in court directly. This is a viable option for large wage claims or when other methods have failed. Class action lawsuits are also a good option to pursue with a group of workers.

Mediation and Settlement

It is common for employers to settle claims outside of the court system. This can often speed up the recovery of unpaid wages and reduce legal costs. However, there is a chance that settlement amounts are lower than a court may award.

How To Build A Solid Case

Success in wage recovery is all about preparation. Here is how you can strengthen a claim.

Keep Detailed Records

Employees should track hours worked on their own time. This should not be solely based on employer records. Note any incidents of being asked to work off the clock.

Know the Deadlines

Wage claims must be brought within a certain period of time known as a statute of limitations. Statutes of limitations for federal wage claims are typically two years from the date of the violation. State time limits may vary.

Important: Do not wait too long. Statutes of limitations are hard deadlines. Missing a deadline is to lose the ability to recover wages forever.

Know the Protections Against Retaliation

Fear of retaliation is a huge reason employees don’t make claims. But here is something good to know…

Employers are forbidden under federal law from retaliating against workers that file wage theft claims. This includes protection from being fired, demoted, or having schedules cut.

Seek Professional Assistance

Large and complex cases may require assistance from a professional. Employment lawyers and unpaid wage recovery services have the expertise and experience to work the legal system. They know how to best navigate the recovery process and maximize chances of getting full recoveries.