It has been reported that millions of Americans are victims wage theft every year. This takes place when employers shortchange workers on benefits, misclassify workers as contractors, or cheat workers out of minimum wage and overtime, among other things.

Under the Fair Labor Standards Act, covered and non-exempt employees must be paid at least $7.25 per hour, as well as one and one-half times the regular pay rate for hours worked in excess of 40. Some states have laws that mandate higher minimum wages, but currently New Jersey’s minimum wage is consistent with the federal rate.

When workers’ wage or overtime rights are violated, they may benefit from speaking with an employment law attorney. It is often possible to obtain back pay and damages from employers who violate the FLSA. For example, after egregious wage violations were uncovered at a restaurant chain in New York, a federal court recently ordered the employer to pay more than $1 million in back wages, interest and damages to 255 employees.

The case involved three restaurants in Nassau and Westchester counties, where the Department of Labor found that servers and kitchen staff were being paid wages that were less than the federal minimum as well as improper overtime rates. Additionally, the employer was reportedly keeping falsified records of wages and hours, which is an FLSA violation in and of itself.

In addition to the settlement for affected workers, the president of the company has been ordered to pay a fine just short of $100,000 for violating the FLSA.

This case is an example of the Department of Labor’s crackdown on wage theft. However, the Department of Labor simply does not have the means to go after every FLSA violator and stand up for every individual employee’s rights. Thus, many victims of wage theft are wise to contact an employment law attorney to obtain compensation and hold their employer accountable.

Source: United States Department of Labor, “3 restaurants in Nassau and Westchester counties ordered to pay $1 million to 255 underpaid employees following US Labor Department Investigation,” Jan. 3, 2013

Source: American Public Media, “Robbed on the job: Advice on fighting wage theft,” Jan. 4, 2013

• For more information about your employment rights here in New Jersey, please visit our law firm’s Employee Rights page.