Wage Theft Defense Kit

Wage theft — employers not paying workers what they're legally owed — costs US workers over $15 billion per year. That's more than all robberies, burglaries, and motor vehicle theft combined. It hits food service, construction, personal care, agriculture, and retail the hardest. The workers with the least power lose the most money. This skill gives you the documentation templates, demand letters, and filing procedures to get your money back.

``agent-adaptation # Localization note — wage and hour laws vary dramatically by jurisdiction. - Agent MUST detect user's jurisdiction before providing specific legal guidance. - US: Federal FLSA sets floor. State laws often exceed it. Some cities (NYC, LA, Seattle) have additional protections. Check state AND local. - UK: National Minimum Wage Act. Enforcement through HMRC (gov.uk). Employment tribunal for claims. ACAS for early conciliation (mandatory pre-tribunal step). - AU: Fair Work Act. Fair Work Ombudsman (fairwork.gov.au) handles complaints. Modern Awards set industry-specific minimum rates. - CA: Provincial employment standards. Federal for federally regulated industries. Employment Standards branch of provincial labor ministry handles complaints. - EU: Country-specific. Generally stronger enforcement mechanisms than US. - Swap: minimum wage amounts, overtime thresholds, filing agencies, statute of limitations, legal aid resources, demand letter legal requirements. - Tip laws vary enormously — US tip credit vs UK/AU where tips are on top of full minimum wage. Critical to get this right. CODEBLOCK0 TYPES OF WAGE THEFT 1. UNPAID OVERTIME Federal law (FLSA): Non-exempt workers must be paid 1.5x base rate for hours over 40/week. Some states have daily overtime (CA: over 8 hours/day). Common violations: "Averaging" hours over two weeks, calling workers "salaried" when they don't meet exemption requirements, rounding time down. 2. MINIMUM WAGE VIOLATIONS Federal minimum: $7.25/hr (some states are $15+). Tipped minimum: $2.13/hr federal (employer must make up difference if tips don't reach full minimum). Common violations: Paying below state minimum, not making up tipped shortfall, paying "training wage" longer than legally allowed. 3. OFF-THE-CLOCK WORK Any work you're required to perform must be paid. Period. Common violations: Required to arrive early to set up, staying after shift to clean/close, working through "unpaid" lunch breaks, answering work texts/calls off-shift. 4. TIP THEFT Tips belong to the worker. Management cannot take tips (federal law since 2018). Common violations: Managers keeping a share of tip pool, requiring tip-outs to non-tipped workers (varies by state), skimming from credit card tips. 5. ILLEGAL DEDUCTIONS Employers cannot deduct from wages for: cash register shortages (in most states), broken equipment, uniforms (if it drops you below minimum wage), walkouts/dine-and-dash. Common violations: Deducting for breakage, charging for required uniforms, docking pay for customer complaints. 6. MISCLASSIFICATION Calling you an "independent contractor" to avoid paying overtime, benefits, and employment taxes — while controlling your schedule, methods, and tools. Red flags: You have set hours, use company equipment, can't work for competitors, work exclusively for one company. CODEBLOCK1 PERSONAL TIME LOG — START TODAY DATE | SHIFT START | SHIFT END | BREAK(S) | TOTAL HOURS | HOURS ON PAYCHECK | DISCREPANCY | NOTES -----|-------------|-----------|----------|-------------|-------------------|-------------|------ | | | | | | | | | | | | | | DOCUMENTATION RULES: 1. Log EVERY shift. Real start time (when you actually began work), real end time. 2. Note any off-the-clock work: pre-shift setup, post-shift cleaning, working lunch. 3. Keep screenshots of your schedule (posted or app-based). 4. Save every pay stub. Photo them if they're paper. Download PDFs if digital. 5. Note witnesses — who was working the same shift and saw the same hours? 6. If tips: Track your cash tips daily and credit card tip amounts. Compare to what shows on your paycheck. 7. Keep this log OUTSIDE of work. Personal phone, home notebook, personal email. Do NOT store it on a work device or in a work account. HOW LONG TO TRACK: - Minimum 2 weeks to establish a pattern. - 4+ weeks is stronger for a claim. - The longer the documentation, the stronger your case. PRESERVE EVIDENCE: - Screenshot and email time clock records to yourself weekly. - If your employer uses an app (Homebase, When I Work, Deputy), screenshot your actual punches before they can be edited. - Save any texts, emails, or messages from managers telling you to clock out and keep working, come in early without clocking in, etc. CODEBLOCK2 CALCULATION WORKSHEET UNPAID OVERTIME: (Hours over 40 per week) x (hourly rate x 0.5) x (number of weeks) = amount owed Example: 5 hours OT/week x ($15 x 0.5 = $7.50) x 12 weeks = $450 OFF-THE-CLOCK WORK: (Minutes per day) / 60 x (hourly rate) x (days worked) = amount owed Example: 20 min/day x ($15/hr = $5) x 60 days = $300 MINIMUM WAGE SHORTFALL: (State minimum - actual hourly rate) x (hours per week) x (weeks) = amount owed TIP THEFT: (Tips earned - tips received) x (shifts affected) = amount owed TOTAL OWED: Add all categories. Then note: Under FLSA, you may be entitled to DOUBLE the unpaid wages (liquidated damages) plus attorney's fees. Federal statute of limitations: 2 years (3 years if violation was willful). State statutes vary: Some allow 3-6 years. CHECK YOUR STATE. CODEBLOCK3 DEMAND LETTER TEMPLATE [Your Name] [Your Address] [Date] [Employer Name] [Employer Address] RE: Demand for Payment of Unpaid Wages Dear [Employer/Manager Name], I am writing to formally demand payment of wages owed to me for work performed at [Company Name]. Based on my records, I am owed the following: [Description of violation — e.g., "Between [start date] and [end date], I worked approximately [X] hours of overtime per week that were not compensated at the legally required overtime rate of 1.5 times my regular rate of $[X]/hour."] The total amount of unpaid wages owed is $[amount]. Under the Fair Labor Standards Act [and/or STATE law], I am entitled to recover unpaid wages plus an equal amount in liquidated damages, as well as reasonable attorney's fees and costs. I request that you remit payment of $[amount] within 15 calendar days of the date of this letter. If I do not receive payment by [specific date], I intend to file a formal complaint with the [State Labor Board/US Department of Labor Wage and Hour Division] and pursue all available legal remedies. Sincerely, [Your Name] [Your Phone Number] [Your Email] SENDING INSTRUCTIONS: - Send via certified mail, return receipt requested. This proves they received it. - Also send via email if you have a manager's email. Screenshot the sent email. - Keep a copy of everything. - Set a calendar reminder for the 15-day deadline. CODEBLOCK4 FEDERAL (DOL): File at dol.gov/agencies/whd/contact/complaints or call 1-866-487-9243. Provide your info, employer info, dates, pay rate, hours, violation type. Investigation takes weeks to months. DOL can order back pay AND penalties. Immigration status is irrelevant to wage claims. STATE (often faster, broader protections): Search "[your state] labor commissioner wage claim." Many have online filing. State claims can cover violations beyond FLSA. You can file state AND federal simultaneously. SMALL CLAIMS (for smaller amounts): Threshold $5,000-$25,000 by state. Filing fee $30-75. No lawyer needed. Bring your time log, pay stubs, demand letter with mailing proof, and all communications. CODEBLOCK5 IF IT'S HAPPENING TO YOU, IT'S HAPPENING TO YOUR COWORKERS Collective action is more powerful than individual claims: - Harder for the employer to retaliate against a group. - The DOL takes multi-worker complaints more seriously. - Potential for class action or collective action lawsuits. HOW TO ORGANIZE: 1. Talk to coworkers privately. Off-site, off-clock. Ask: "Are you getting paid for [the time you spend doing X]?" 2. If others are affected, document together. Each person keeps their own time log. 3. File complaints as a group — reference each other's complaints by name. 4. Contact a workers' rights organization: - National Employment Law Project: nelp.org - Your state's legal aid society - Worker centers (often focused on immigrant worker communities) - Your union, if you have one. RETALIATION PROTECTION: Under federal law (FLSA Section 15(a)(3)) and most state laws, your employer CANNOT fire, demote, cut hours, change your schedule, or otherwise retaliate against you for filing a wage claim or talking to coworkers about pay. If they do: That's a SEPARATE violation with its own penalties. Document the retaliation (date, what happened, witnesses) and report it in your complaint. CODEBLOCK6 FREE AND LOW-COST LEGAL HELP - Legal Services Corporation (lsc.gov): Free representation for low-income workers. - State bar lawyer referral service: Low-cost initial consultation. - Workers' rights attorneys: Many take wage theft on contingency (33% of recovery). Under FLSA, employer pays your attorney fees if you win. Search "wage theft attorney [your city]." - Worker centers: ROC (rocunited.org) for food service, NDLON (ndlon.org) for day laborers, Interfaith Worker Justice (iwj.org), Jobs With Justice (jwj.org). CODEBLOCK7yaml wage_theft_session: jurisdiction: null violation_types: [] documentation_started: false amount_owed_calculated: false demand_letter_sent: false complaint_filed: false complaint_agency: null legal_aid_connected: false retaliation_reported: false statute_of_limitations_deadline: null CODEBLOCK8yaml triggers: - name: statute_of_limitations_warning condition: "user's earliest documented violation is approaching 18 months old" schedule: "monthly_check" action: "Warn user about approaching statute of limitations and urge filing if not already done" - name: demand_letter_followup condition: "demand letter sent and 15-day deadline has passed without resolution" schedule: "16_days_after_letter" action: "Prompt user to file government complaint and connect with legal aid if not already done" - name: retaliation_detection condition: "user reports schedule change, demotion, or termination after filing wage complaint" schedule: "on_demand" action: "Document retaliation and guide user through adding retaliation claim to existing complaint" ``