The vast majority of employers pay their employees a fair wage – but some cheat. They find ways to shave a few dollars (or more) off their employees’ paychecks wherever they can. Worse, many of these employees are totally unaware that it is happening to them, so the employer gets away with it.
Knowing how an employer may try to underpay you is half the battle. Here are three ways that it can happen:
1. Misclassification
Employers sometimes classify a person as an independent contractor when they should classify them as an employee. Sometimes it is done by mistake, but sometimes it is done intentionally.
Employees are entitled to considerable benefits, such as overtime and sick leave, that independent contractors are not – and those benefits are part of their wages. Even though the worker may think they are getting paid correctly, they’re really losing out.
2. Paying less than minimum wage
California has a relatively high minimum hourly wage, but not all workers receive that minimum, despite the law.
Employers sometimes tell employees that they fall under an exception (when they don’t), or deny them the minimum base wage because they are tipped. Employees may accept the treatment only because they don’t know better or because they’re simply desperate for work and afraid to complain.
3. Creative timekeeping strategies
California has strict laws about what counts as work and what breaks must be given. Employers sometimes put their own interpretation on things to reduce the hours and minutes on an employee’s time slip.
For example, an employer may tell an employee that “prep time” doesn’t count as work time or require them to work at their desk during unpaid lunches. Both are common examples of wage theft.
If you suspect your employer has underpaid you, talking to an experienced attorney can help you decide what to do next.
