Most employees assume that if their paycheck arrives on time, their employer is following the law. Unfortunately, that’s not always the case. Wage theft—when an employer illegally withholds pay—is far more common than many realize. In fact, the Economic Policy Institute estimates that workers lose billions each year due to violations of wage and hour laws.
Knowing how to identify the signs of wage theft is the first step in protecting your rights. Here’s a breakdown of the most common forms it takes and what you can do if you suspect it’s happening to you.
1. Off-the-Clock Work
One of the most common wage theft tactics is asking employees to work without pay. This could mean:
- Finishing tasks after clocking out
- Attending mandatory meetings without compensation
- Performing setup or cleanup duties outside of scheduled hours
Under the Fair Labor Standards Act (FLSA), all non-exempt employees must be paid for every hour they work, whether those hours are pre-shift, post-shift, or during scheduled breaks.
If your employer pressures you to “help out” off the clock—even for just a few minutes—it adds up over time and is a violation of federal law.
2. Unpaid Overtime
The FLSA requires most employees to receive time-and-a-half pay for hours worked over 40 in a workweek. Employers may commit wage theft by:
- Refusing to pay overtime at the correct rate
- Misreporting hours to keep totals under 40
- Offering “comp time” instead of overtime pay in the private sector
The Georgia Department of Labor follows federal overtime rules, so your employer cannot legally avoid paying you the extra wages you’ve earned.
3. Misclassification as Exempt
Some employers label workers as “exempt” from overtime pay to avoid paying for extra hours. While certain jobs—such as executives, administrators, and some professionals—are legitimately exempt, many employees are misclassified.
A common example is labeling a low-level worker as a “manager” without giving them real managerial duties or paying them the required salary threshold. The U.S. Department of Labor’s Wage and Hour Division provides clear guidelines for determining who qualifies as exempt. If your role doesn’t meet the legal criteria, you may be owed significant back pay.
4. Illegal Deductions
Not all paycheck deductions are legal. Employers may deduct for taxes, insurance, or court-ordered payments, but they cannot take money for:
- Broken equipment (unless caused intentionally)
- Cash register shortages not due to employee theft
- Uniform costs that reduce your earnings below minimum wage
If your employer makes deductions that result in you earning less than the federal or state minimum wage, it’s a violation of the FLSA.
5. Paying Less Than Minimum Wage
The federal minimum wage is $7.25 per hour, and Georgia’s state minimum wage mirrors that for most workers. Employers who pay less—whether openly or through illegal deductions—are committing wage theft.
Tipped employees are especially vulnerable. While employers can take a “tip credit,” they must ensure that tips plus wages meet or exceed the minimum wage. If they don’t, the difference must be covered by the employer (National Employment Law Project).
What to Do If You Suspect Wage Theft
If you believe your employer is withholding wages you’ve earned:
- Document Everything – Keep detailed records of hours worked, pay received, and any instructions from your employer.
- Review the Law – Check the FLSA and Georgia labor laws to see if a violation has occurred.
- Address It Internally – If possible, speak with HR or your manager to clarify pay discrepancies.
- File a Complaint – You can file a complaint with the U.S. Department of Labor or the Georgia Department of Labor.
- Seek Legal Guidance – In many cases, consulting with a lawyer is the most effective way to recover unpaid wages.
A skilled FLSA lawyer in Atlanta such as Weiner & Sand LLC can help recover wages you’ve earned, ensure your rights are upheld, and hold your employer accountable for violations.
Bottom Line
Wage theft is not just an inconvenience—it’s a violation of federal and state law that can impact your financial stability and quality of life. By recognizing the signs early and taking action, you can protect yourself and possibly help prevent the same thing from happening to others in your workplace.
Your paycheck is more than just numbers on a piece of paper—it’s your livelihood. Don’t let it be taken from you.
