Wage & Hour
What Are Legal Issues with Wage and Hour in U.S. Law?
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Wage and hour law refers to the rules and standards that govern how employees must be paid for their work in the United States. These rules cover minimum wage, overtime pay, working hours, breaks, and how time is recorded. They are primarily enforced by the Fair Labor Standards Act (FLSA) at the federal level, but individual states often have their own laws that offer even more protection. Legal issues arise when employers violate these rules—knowingly or unknowingly—often at the expense of workers who may not even realize their rights are being ignored.
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Common Legal Issues with Wage and Hour
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One of the most common wage issues is not being paid the correct minimum wage. The federal minimum wage is currently $7.25 per hour, but many states and cities require a higher amount. If you're not being paid according to the highest applicable minimum wage in your area, that’s a violation.
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Another major issue is unpaid overtime. Under federal law, employees who work more than 40 hours in a workweek must generally be paid one and a half times their regular rate for those extra hours. If you're working extra time and not getting paid properly for it, you may have a strong legal claim—even if you’re on salary. Many workers are wrongly classified as “exempt” from overtime when they are not.
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Misclassification is a huge issue in wage and hour law. Employers sometimes call someone an "independent contractor" instead of an employee to avoid paying benefits, overtime, or even minimum wage. If you’re doing the work of a regular employee but being treated as a contractor, that could be illegal.
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There are also problems with off-the-clock work, like being required to set up before your shift or stay late afterward without being paid. Similarly, working through unpaid breaks or being forced to clock out and keep working can be considered wage theft.
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Another issue is inaccurate or missing time records. Employers are legally required to keep accurate records of the hours employee's work. If they fail to track your time properly—or if they alter your timecards—you may be owed back pay.
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Tip violations are also common in certain industries. For example, if you’re a tipped worker like a server or bartender, your employer can pay a lower hourly wage, but only if tips bring you up to at least minimum wage. Employers are not allowed to take a share of your tips or force tip pooling that includes non-tipped workers like managers or cooks.
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Finally, retaliation is a serious concern. If you complain about wage theft or ask questions about your pay and then get fired, demoted, or punished in some way, that’s illegal. Workers are protected when they raise concerns about their wages under both federal and state laws.
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How You Might Be a Victim
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You might be a victim of wage and hour violations if you’ve been working overtime but never receive overtime pay, or if you’re forced to work off the clock without compensation. You may also be affected if you’re being paid less than the minimum wage in your state, if your tips are being taken by your employer, or if your break time is being denied or shortened unlawfully.
Many workers are misclassified as independent contractors or salaried employees and are told they’re not entitled to overtime—when in reality they are. You may also be a victim if your employer alters your time records, refuses to give you a pay stub, or fails to explain deductions from your paycheck. Even if the abuse seems small, these practices add up and may impact your livelihood significantly.
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What You Can Do
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1. Keep detailed records of your hours worked, pay received, and any breaks you were or weren’t given. Save all pay stubs and communication with your employer.​
2. Avoid confronting your employer until you understand your legal rights—this helps you avoid retaliation or further loss.
3. Speak with Venganza Law, we can investigate, help you recover unpaid wages, and ensure your employer complies with the law.
4. Be aware that there are deadlines for filing wage claims, which vary by state, so don’t wait too long to take action.