Many American workers lose thousands of dollars in back pay yearly simply because they don’t know their rights. If you work in the United States and don’t get paid on time, it’s not just a common problem; it’s a violation of legal rights. Sometimes employers intentionally delay overtime, bonuses, or severance pay.
However, the good news is that the United States has strong labor laws that protect workers’ rights. In this article, we’ll discuss how to claim your wages, what the average unpaid wages settlement might be, and how to avoid such situations.
1. What Are Unpaid Wages?
Back pay refers to money you didn’t earn after you worked. For example:
- You worked overtime but didn’t get paid for it.
- You had your last month’s pay withheld after you quit your job.
- A bonus was mentioned in the contract, but it wasn’t paid.
- Unused vacation pay is also considered back pay.
- You can get this type of money back through the law.
2. Common Causes of Wage Disputes
Before learning about settling outstanding wages, it is important to understand what causes wage problems in general.
Misclassification:
Sometimes employers show real employees as ‘contractors.’ As a result, they do not have to pay overtime or other benefits. This is done intentionally to reduce the company’s costs.
Poor Record Keeping:
Some organizations do not keep accurate working hours, holidays, or overtime records. As a result, employees do not get paid in full. Sometimes, even if they work on holidays, they are not paid for it.
Intentional Withholding of Pay:
Some companies intentionally fail to pay employees what they are owed. They commit such irregularities, especially when they realize the employees are unaware of their rights. Such behavior is completely illegal and punishable.
Legal Rights of Employees
The United States has several strong laws that protect the rights of employees. These laws allow you to demand fair pay.
Fair Labor Standards Act (FLSA):
This law is a federal regulation that protects workers’ minimum wage, overtime, and working hours.
State Labor Laws:
Each state has its own labor laws. Sometimes, state laws offer more benefits for workers than federal laws, so it is essential to know about local laws as well.
Equal Pay Act and FMLA:
The Equal Pay Act guarantees that men and women are paid the same. Under the ‘Family and Medical Leave Act,’ employees have the right to take time off when they or a family member is sick or has an emergency.
These laws allow you to make a written claim and claim compensation.
4. Average Back Pay Settlement Amount
How much you might be owed depends on a few things:
- When was the last time you earned any money?
- What role did you have in your job?
- Your company’s financial condition and how big they are
Some examples:
- A restaurant worker received $6,000 in compensation for not getting overtime for 3 months.
- A large company paid an engineer $25,000 and gave them 4 months of back pay.
- Many employees earn between $3,000 and $10,000 in compensation. Sometimes, though, the costs can be considerably more or less.
5. How To File a Wage Claim?
Follow these steps to get your compensation:
- Gather evidence: timesheets, pay slips, contracts, emails—keep everything.
- Contact your employer: Talking directly can help resolve the issue.
- File a complaint with your state’s labor department: Every state has a labor board. So, go to your state’s labor board to submit a complaint.
- Get help from your union: If you are part of a union, ask them for help to get payment.
- Take legal action: If all else fails, you can file a lawsuit in court through a lawyer.
6. Timeframe and Process of Settlement
The process for getting your back pay depends on which path you choose.
Investigation: After you file a complaint, the authorities look into the matter. This usually takes 1-3 months.
Mediation: Both parties sit down and try to settle through negotiations. This provides a faster resolution than the court.
Court ruling: If negotiations are not fruitful, the case goes to court. This can take 6 months to 1 year.
Most companies want to settle quickly to avoid the risk of litigation, so that you can get your money quickly.
7. Preventing Future Wage Issues
There are a few things you can do to avoid such problems in the future:
Keep records: How many hours you work and what kind of work you do—write it all down or save it in an app.
Read the contract carefully: Salary, overtime, bonuses—make everything clear in advance.
Maintain transparency: Discuss salary openly with your employer.
Connect with unions: They can provide legal support if needed.
Final Thoughts
You have the right to be paid on time while working in the United States. If your employer does not pay you overtime, last month’s salary, or money you are owed, you can get it back through the law. Average unfair wage settlements often bring positive results for employees. You only need the right information, evidence, and a little courage to get all your rights. So know your rights and don’t hesitate to take action if necessary.
