Wage Theft and Class Action Lawsuits: How Workers Can Fight Back
Imagine working hard day in and day out, putting in extra hours, and sacrificing time with your loved ones only to discover you’ve been paid less than you deserve. For many workers in the U.S., this isn’t just a bad dream. It’s their reality. Wage theft is a widespread but underreported issue that robs honest workers of their earnings and financial stability.
If you’ve experienced unpaid overtime, had illegal deductions taken from your paycheck, or been improperly classified as an independent contractor, you’re not alone. However, there is good news. Workers can have access to powerful tools, like class action lawsuits, to seek justice and recover what they’re owed. Here's what you need to know and how our attorneys at Gordon, Wolf & Carney can help.
What is Wage Theft?
Wage theft occurs when employers fail to pay workers what they are legally owed. This isn’t just about skipping a paycheck; it takes many forms that can often go unnoticed unless you know what to look for. Some common types of wage theft include:
Unpaid overtime: Employers may underpay or entirely omit overtime payments that workers are due.
Illegal deductions: Some companies deduct workers’ pay for uniforms, supplies, or other expenses that should legally be covered by the employer.
Misclassification of employees: Labeling employees as independent contractors to avoid providing benefits or paying the minimum wage.
Failure to pay minimum wage: Paying employees below the mandated minimum wage in their jurisdiction.
Off-the-clock work: Asking employees to engage in unpaid work either before or after their official shifts.
Industries like retail, hospitality, agriculture, and construction are especially notorious for wage theft practices, but no sector is completely exempt. Employers who engage in wage theft can harm their employees and undermine fair competition and economic equity on a systemic level.
The Consequences of Wage Theft
The ramifications of wage theft go far beyond just a lighter paycheck. It impacts workers, their families, and even society as a whole. The consequences of wage theft can be divided into two primary categories:
Personal Toll on Workers
Financial strain, which can cause employees to struggle with affording basic necessities like rent, utilities, and groceries.
Emotional stress, which commonly arises from feeling undervalued and powerless.
Disillusionment with the workplace and decreased morale among employees.
Economic Impact
Wage theft drains consumer spending ability, ultimately slowing economic growth in local communities.
Wage theft also reduces tax revenue, which can impact public services like schools and healthcare.
While individual complaints can sometimes resolve issues, systemic wage theft often requires a more expansive response, such as filing a class action lawsuit against the employer or company.
What Are Class Action Lawsuits?
When systemic wage theft occurs, a class action lawsuit may be the most effective weapon to file a suit against your employer. A class action is a legal case where a group of individuals collectively sues an employer or entity for common wrongdoing. Instead of dozens (or even hundreds) of individual lawsuits, a single proceeding addresses all workers harmed in the same way.
Benefits of Class Action Lawsuits
Filing a class action lawsuit against your employer for wage theft can greatly benefit your collective workforce. Some of the most common include:
Amplified impact: A united group has more leverage than an individual employee, which can lead to stronger settlements.
Efficiency: Class actions consolidate similar claims, which can save considerable time and legal resources.
Fair remedies: When settlements are reached, damages are typically divided equitably among the affected parties.
Filing Requirements
To file a class action, workers need to illustrate that their employer’s practice has harmed a defined group in the same manner. Evidence such as payroll records, time logs, and internal communications help support these claims.
How Workers Can Fight Back
If you suspect wage theft, you’re not powerless. The steps you can take to fight back against wage theft from an employer include the following:
Document everything: Keep detailed records of your hours worked, pay received, and any communications with your employer. These documents can be priceless when building your case.
Consult with an attorney: Don’t try to fight it alone. Wage theft cases can be incredibly complicated, requiring a deep understanding of labor laws. At Gordon, Wolf & Carney, we strive to provide the guidance and advice you need. Our attorneys have over 100 years of combined experience fighting for workers nationwide.
Lean on advocacy groups and labor unions: Many unions and nonprofit organizations offer support for workers facing wage theft, from gathering resources to providing legal referrals. Don’t hesitate to tap into this network.
Join class action efforts: If you know other employees who have been affected by similar wage issues, join forces with them. Standing together increases your chances of recovering your wages.
Spread awareness: Educate your colleagues. Wage theft often thrives in secrecy. Spreading awareness within the workplace can shine a much-needed light on these unjust practices.
Tips for Protecting Your Rights
If you or someone you know believes they may have experienced wage theft, it's important to take proactive steps to help guard yourself against future wage theft and combat it before it becomes an issue. Some steps you can take include:
Educate yourself: Familiarize yourself with local and federal labor laws, such as those related to wages, overtime, and breaks.
Watch for red flags: If your paycheck doesn’t align with your worked hours or includes unexpected deductions, investigate further.
Leverage resources: Organizations like the Department of Labor and Workers’ Rights Centers provide tools and guidance for employees.
If you’re unsure where to start or need guidance, we’re here to help. Reach out to our firm, Gordon, Wolf & Carney today for a consultation.
Wage Theft FAQ
Can I take action against wage theft if I’m not a U.S. citizen?
Yes, labor laws protect all workers, regardless of immigration status. You have the right to be paid fairly for the work you perform. Our attorneys can guide you on steps to take to address wage theft and protect your rights.
How long do I have to file a wage theft claim?
Under the Maryland Wage & Hour Law (MWHL) and the Maryland Wage Payment & Collection Law (MWCPL), you typically have three years to file a lawsuit for wage theft. However, there may be exceptions to this rule. For more information, schedule a consultation with us to better understand the specific timeline for your case.
What should I do if my employer retaliates against me for reporting wage theft?
Retaliation for reporting wage theft is illegal. If your employer takes adverse actions against you, such as demotion, termination, or threats, you have the right to file a retaliation claim. Document any incidents of retaliation and contact an attorney to help protect your rights.
Standing Together for Justice
When employers fail to pay what they owe, workers struggle while businesses gain from unethical practices. Together, we can change that.
At Gordon, Wolf & Carney, we’re committed to helping workers protect their rights and pursue justice for wage theft. Our attorneys are ready to fight for you, whether you’re an individual looking for guidance or a group ready to file a class action lawsuit.
Don’t face this battle alone. Together, we can fight for justice against wage theft. Contact us at Gordon, Wolf & Carney today. Located in Hunt Valley, Maryland, we serve clients throughout the United States.