What Is Wage Theft?

Many restaurant employees, including servers, food runners, bartenders, and hosts, often don’t realize their employer owes them unpaid wages and withheld tips. Wage theft occurs when an employer underpays employees, and the offense takes many forms. Fortunately, federal, state, and local laws protect restaurant workers from wage theft.

If you’re a restaurant worker who has lost money due to unfair tipping practices or other wage-related violations, you can pursue legal action to protect your rights. Consult an experienced business lawyer in Brooklyn for legal guidance to help you recover unfairly unpaid wages and tips.

What Does the Law in New York Say About Wage Theft?

Under federal wage laws, all employees are entitled to a minimum hourly wage, but New York has a higher minimum wage than the federal minimum. You can sue for penalties if your employer pays you less than the minimum wage.

Nonetheless, your employer can pay you less than the minimum wage if you receive enough tips that raise your hourly earnings to the minimum wage, but can’t pay you solely with tips. Failure by your employer to guarantee that you make the minimum wage, including tips, can qualify as wage theft. A Brooklyn employment law attorney can help you navigate these nuances.

What Are Some Types of Wage Theft?

Restaurant employers commit wage theft in many ways, most of which are unknown to some employees. An employment law attorney in Brooklyn says you could benefit from legal action if you have been a victim of one or more of the following forms of wage theft:

  • Tip skimming: Restaurant management that withholds or unfairly takes a share of tips to pay off non-service staff or kitchen staff may be guilty of wage theft. The law is against tip-skimming, and you can fight for what you rightfully deserve if your employer has been withholding tips from you.
  • Unpaid overtime: If you work more than 40 hours a week and are not compensated for the extra hours, your employer commits a crime. The stipulated overtime rate is 1.5 times your regular hourly rate.
  • Employee misclassification: Your employer may wrongfully classify you as an independent contractor to avoid paying benefits or proper wages.
  • Minimum wage violations: New York’s minimum wage is higher than the federal standard, and if your employer pays you less than the stipulated amount, they may be guilty of wage theft.
  • Off-the-clock work: Your employer may ask you to work off the clock, meaning you won’t be paid for those hours. This is against the law, and you can file a complaint to recover the wages. It’s also illegal for your employer to fail to pay you a premium if they ask you to work a shift without advance notice.
  • Illegal deductions: An employer cannot make certain deductions from your paycheck. For example, they can deduct the cost of spoiled food or broken dishes from your wages. They also can’t deduct the cost of unpaid customer bills from your pay. If you’ve been subjected to such deductions, seek the counsel of a Brooklyn employment law lawyer.
  •  Misappropriation of service charge: Some restaurants grossly violate the Hospitality Wage Order when they misappropriate the service charge or fixed gratuity charged to customers in the bill. Customers are made to believe the charge will go to the wait-staff, which doesn’t happen.
  • False call-ins: If your employer calls you in to work but promptly sends you back upon arrival, you’re entitled to receive minimum wages for at least three hours.

What are My Legal Options as A Victim of Wage Theft?

As a restaurant employee, you should know your wage rights as stipulated in the Fair Labor Standards Act. This awareness is crucial in helping you challenge your employer if you believe you’re being underpaid or denied the wages that rightfully belong to you.

New York’s anti-retaliation laws protect employees from repercussions from their employers if they seek legal assistance against unfair work practices. Skilled lawyers can help you claim the payments your employer owes you and fight to ensure you’re not exploited in the future. They can evaluate your case specifics to determine the course of action to obtain a favorable outcome.

Some crucial steps to protect your rights in the pursuit of justice include:

  • Keeping accurate records: Documenting all your hours, including overtime, is vital. These details can help support your case if you decide to pursue legal action.
  • Talking to your employer: Wage theft can sometimes result from an unintentional error on your employer’s part. If you’re comfortable, try discussing it with your employer to resolve it without legal action.
  • File a complaint with the Department of Labor: If negotiations with your employer fail, you can file a wage theft complaint with the State’s Department of Labor. The officials will investigate the matter and take the necessary actions to resolve it if they find your employer violating labor and wage laws.
  • File a lawsuit: If the Department doesn’t resolve your complaints or you’re unsatisfied with the outcome, you can consult a skilled employment law lawyer to help you file a lawsuit. Depending on the case specifics, they may help you recover back pay, penalties, and damages for the stress suffered due to wage theft.

An Experienced Employment Law Lawyer Helping You Navigate Wage Theft Cases

As a business lawyer in Brooklyn explains, wage theft in the restaurant industry happens in many forms. You may have realized that your restaurant employer is not paying the full legal wages, but you are afraid of taking any action because you’re afraid of retaliation. Consider enlisting the help of an aggressive employment law attorney in Brooklyn to fight for your rights.

The Law Offices of Vincent Miletti, Esq. has a dedicated lawyer who can evaluate your case to determine whether filing a claim is in your best interests. We can help you hold your current or former employer accountable for wage violations. Call us at 314-648-2586 to discuss a practical case strategy.