Unpaid Wage Claims
Minimum Wage
The Federal minimum wage recently increased. As of July 24, 2008, all employees are entitled to a minimum of $5.85 per hour of work unless you legally fall within an exemption from the federal minimum wage laws. The minimum wage under Federal law will increase again to $6.55 per hour on July 24, 2008, and again to $7.25 per hour on July 24, 2009. Meanwhile, all employers in Wisconsin must meet the Wisconsin minimum wage law of $6.50 per hour.
An employer's obligation to pay employees the minimum wage depends on whether the employer and employee are covered by either the state or federal law on wages. Also, certain employees are not covered by the minimum wage law and are considered exempt by virtue of their duties or the type of employment. Employers, however, may misclassify employees as exempt from the law when in fact they are covered. Failing to pay employees the appropriate wage because the employer misclassifies the employee as exempt will likely result in a violation of the employees rights under these wage laws.
Overtime Wage
Both Federal and Wisconsin law requires employers to pay 1.5 times your regular rate per hour for all hours worked in a workweek in excess of 40 unless you legally fall within an exemption from the overtime law. This is overtime pay. For example, if you work for $8.00 per hour and work 50 hours in a week, you have earned $320.00 in straight time, and an additional $120.00 in overtime pay. In mathmatical terms, the calculation is: ($8 x 40 hours) + (($8 x 1.5) x 10 hours) = $440.00 gross pay. If an employer fails to pay for the overtime hours, either at the proper rate or just does not pay any overtime, then an employee may file a complaint with the U.S. Department of Labor, the Wisconsin Labor Standards Bureau or may pursue a lawsuit to recover the unpaid wages. A lawsuit may entitle the employee to recover twice the amount of unpaid overtime wages.
An employer's obligation to pay employees overtime pay depends on whether the employer and employee are covered by either the state or federal law on wages. Also, certain employees are not covered by the overtime wage law and are considered exempt by virtue of their duties or the type of employment. Employers, however, may misclassify employees as exempt from the law when in fact they are covered. Failing to pay employees the appropriate wage because the employer misclassifies the employee as exempt will likely result in a violation of the employees rights under these wage laws.
Failure to Pay Agreed Wages
If an employer fails to pay an employee the wage promised, the employee may have a right to recover against the employer based on the legal theories known as breach of contract, misrepresentation or even fraud. These claims may be valid even if the employer paid the minimum wage required by law or the state and federal wage laws do not cover the employer or the employee is truly exempt from the wage laws.
Unlawful Deductions from Pay
Wisconsin law prohibits deductions from an employee's paycheck in most circumstances. When it is permitted, the employee generally must agree to the deduction in writing before the deduction begins. An employer's deduction from a paycheck without the employee's consent may violate Wisconsin law and the employee may have a legal claim for damages.
Wrongfully Withholding Paycheck
Wisconsin law requires employers to pay employees at least within 30 days from the date worked, and generally at the next regular pay day according to the employer's practices. This law even applies to the last paycheck following termination of employment. That means that if you work on May 1st, you should get paid for that day on or before May 30th. Sometimes, we have seen employers hold a last paycheck for various reasons, and when the check is withheld beyone the 30 day mark for the first day to which it applies, then the employer is violating Wisconsin law, for which an employee may have legal remedies.
Retaliation Prohibited
Wisconsin and Federal law prohibit employers from firing, disciplining or otherwise taking most any adverse employment action against an employee because the employee has reported the employer to the state or federal government or filed a legal action for violations of the wage laws. Employees that are the victim of such employer retaliation have the right to pursue a claim against the employer for the damages that the retaliation causes and to get a court to order the employer to stop retaliating.
Claims for Wage Violations or Retaliation
Employees can pursue violations of the state and federal wage laws. In some circumstances, the law permits recovery of twice the amount of unpaid wages and requiring the violating employer to pay a reasonable attorney's fee and costs incurred pursuing the claim.
We represent many employees in wage related claims, and, in appropriate cases, we are paid our fee through the fee shifting provisions of the law, a court award or a contingency fee from the recovery.
Attorney Gordon R. Leech
Samster, Konkel & Safran, SC
1110 N. Old World Third St., Suite 405
Milwaukee, WI 53203
Tel: 414-224-0400