Labour & Service Law

20 Questions About Wage Disputes Answered

What is a wage dispute? A wage dispute is one in which the employee feels he or she is not being compensated fairly for their work, or there is disagreement between the employer and the employee regarding wages or pay practices.

What causes wage disputes? A wage dispute could be caused by incorrect pay, overtime issues, misclassification of employees, wage theft, or disagreements over benefits, bonuses, or commissions.

Wage theft is when an employer fails to pay the employee his or her lawful wages, for example, not paying overtime or less than the minimum wage.

How can I know if I’m being paid incorrectly? To determine if you’re being paid incorrectly, review your pay stubs, compare your hourly rate or salary to your contract or job description, and check if overtime and other entitlements are calculated correctly.

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If you think you’re not being paid correctly, there are steps you should take. Talk to your employer or HR person first. Make sure you record your hours and pay. In the event you cannot get them to change things, you could file a complaint with your state or national labor board or attorney.

Can I be fired for raising a wage dispute? It is illegal for an employer to retaliate against an employee for asserting their rights regarding pay. However, the specifics of retaliation laws vary by jurisdiction, and the specifics can depend on your location and the situation.

What is minimum wage, and what is its relevance to wage disputes? Minimum wage laws determine the minimum amount of an hourly wage an employer can pay to workers. A wage dispute arises if the employee feels they are being paid below the minimum wage.

How do overtime laws impact wage disputes? Overtime laws require that most employees be paid 1.5 times their regular hourly rate for hours worked beyond a certain threshold, usually 40 hours per week. The dispute can occur if overtime is not paid correctly.

The FLSA stands for Fair Labor Standards Act. It is a federal law in the United States that sets minimum wage, overtime, and child labor standards. This is one of the key laws that can help resolve wage disputes, especially among employees covered by the Act.

Can employers deduct wages for mistakes or damages? In most jurisdictions, employers cannot deduct wages for errors or damages unless the employee has agreed to such deductions in writing or under specific circumstances allowed by law.

What are exempt vs. non-exempt employees in wage disputes? Exempt employees are not entitled to overtime pay due to their job duties and salary level, while non-exempt employees are entitled to overtime. Disputes can arise when employees are misclassified as exempt or non-exempt.

What is a wage and hour lawsuit? A wage and hour lawsuit is a legal action taken by an employee to recover unpaid wages, overtime, or benefits that were not properly paid.

How would I know the amount of outstanding wages that should be paid? Unpaid wages are computed as a review of your pay stubs, your work hours and your rate for your employment. Consider overtime pay and bonuses earned and should be included.

Can I file an anonymous wage dispute claim? That depends on the jurisdiction, as you may file a claim anonymously with your labor board. In most cases, though, it is better to provide your information so that the case can be fully considered.

When can I file for a wage claim? The statutes of limitations depend on the place of jurisdiction and usually fall somewhere between 1-3 years from the day the wages accrued. In some U.S. states, there is a specific statute of limitation of two years.

A wage dispute can involve bonuses or commissions. Wage disputes may include disagreements about bonuses, commissions, or other incentive pay not correctly calculated or paid according to the agreement.

Liquidated damages in wage disputes are essentially the amount of money that an employer is liable to pay over and above the unpaid wages, which are usually the same as the unpaid wages or overtime.

Collective bargaining agreements affect wage disputes in the sense that CBAs are agreements between employers and unions on the rate of wages and working conditions. If one party feels that the CBA is being violated, then there will be a wage dispute.

What are the possible results of a wage dispute? Results of a wage dispute can include payment of unpaid wages, penalties for the employer, changes to pay practices, or, in some cases, dismissal of the claim if it lacks merit.

You should consult an attorney regarding a wage dispute. If your employer refuses to resolve the dispute or if you are not sure about the legality of the situation, it will be prudent to seek a labor law attorney who can assist you to know your rights and available options.

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