It would never cross most people’s minds that their employer may be stealing from them. While they might be hypervigilant about making sure no one steals their wallet or bag when they’re walking down the street, they may just assume that their employer will pay them the appropriate amount of money each pay period. That can be an expensive mistake.
Studies have found that a total of around $50 billion is stolen from employees by employers every year in the U.S. You don’t even reach that figure of theft by combining all the robberies, burglaries and car thefts that take place in the country annually.
How do they get away with it?
Employers get away with this theft for several reasons. First, they often target those they know will be too scared to speak up and complain. They also rely on employees not checking their pay slips properly and not understanding employment laws.
Overtime is one example of how wage theft occurs. An employer may ask someone whom they know could use more hours whether they want overtime. The person may be so happy to get the extra income that they never bother to learn that they should get time and a half rather than the normal rate.
Taking a few minutes here and there is another way wage theft happens. If an employer gets people to start a few minutes before they sign in each day and end a few minutes after they sign out, perhaps also shortening lunch by a couple of minutes, then they can gradually save themselves a lot of money across the workforce.
Misclassification is another method. Employers tell people who should be classified as employees that they are general contractors, thus saving money in several ways – for example, by not having to provide benefits.
If you believe your wages are wrong, it is usually best to approach your employer first. If, however, you are afraid of the consequences or have had no success with that route, then legal guidance may be essential.