How to Calculate Unpaid Wages and File a Claim

Every employee deserves to be fully compensated for the time and effort they dedicate to their job. Unfortunately, wage theft is a common issue that deprives workers of their rightful earnings. Unpaid wages occur when an employer fails to pay an employee the minimum wage, denies overtime pay, or makes illegal deductions from their paycheck.

Understanding your rights as an employee is critical to protecting your livelihood. When you know how to identify wage violations, you are empowered to take action. The wage and hour attorneys at Barrett & Farahany will walk you through calculating unpaid wages, gathering the necessary evidence, and filing an unpaid wage claim to recover what you are rightfully owed.

How to Calculate Unpaid Wages

Determining exactly how much money your employer owes you is the first step in building a strong case. Calculating unpaid wages depends on your employment type and the nature of the wage violation.

For Hourly Employees

If you are paid by the hour, calculating your unpaid wages is relatively straightforward. You simply need to multiply the number of uncompensated hours you worked by your regular hourly rate. For example, if you worked 10 hours off-the-clock at a rate of $15 per hour, you are owed $150.

For Overtime Hours

Under the Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay for any hours worked over 40 in a single workweek. Overtime is calculated at 1.5 times your regular hourly rate. To determine your unpaid overtime, multiply your overtime hours by this time-and-a-half rate.

Minimum Wage Violations and Illegal Deductions

If your employer pays you less than the mandated federal or state minimum wage, you are entitled to the difference. Calculate the gap between what you were actually paid and what you should have been paid under the minimum wage law for all hours worked. 

Additionally, if your employer made illegal deductions from your paycheck — such as charging you for uniforms or equipment — you must total these deductions to add to your claim.

Gathering Evidence for Your Claim

Thorough record-keeping is the foundation of a successful claim. To prove that you are owed money, you must provide clear documentation of your work hours and compensation.

Types of Documentation to Collect

Start by gathering all relevant financial and employment records. Essential documents include:

1. Pay stubs and payroll records
2. Bank statements showing direct deposits
3. Personal timecards or time logs you kept yourself
4. Emails or text messages with supervisors confirming your work hours

The Importance of Thorough Record-Keeping

Employers are legally required to keep accurate payroll records, but they sometimes fail to do so or alter the data. Keeping your own detailed records serves as a critical backup. 

The more evidence you can provide regarding the exact hours you worked and the pay you received, the stronger your case will be when filing an unpaid wage claim.

Filing an Unpaid Wage Claim

Once you have calculated your owed wages and gathered your evidence, the next step is to file your claim. This can be done at the federal or state level, depending on your location and the specific laws involved.

Federal Agencies

You can file a complaint with the U.S. Department of Labor’s Wage and Hour Division (WHD). The WHD handles claims across multiple states, including Georgia, Alabama, Missouri, Tennessee, North Carolina, and Illinois. You can reach them at 1-866-4USWAGE.

State-Specific Filing Procedures

Certain states have their own departments and specific procedures for handling wage claims.

• Georgia (Atlanta): The Georgia Department of Labor (GDOL) does not have the authority to collect back wages. Employees in Georgia must file their claims directly with the Federal WHD.
• Alabama (Birmingham & Mobile): Alabama does not have a state-level wage and hour division. Like Georgia, workers in Birmingham, Mobile, and throughout the state must file their claims through the Federal WHD.
• Tennessee (Nashville): Employees in Tennessee can submit a Statement of Wage Claim Form directly to the Tennessee Department of Labor & Workforce Development.
• North Carolina: If you work in North Carolina, you can file a wage complaint directly with the North Carolina Department of Labor.
• Illinois (Chicago): Workers in Chicago and across Illinois can use the online wage claim application provided by the Illinois Department of Labor (IDOL).
• Missouri: In Missouri, you have the option to file a claim with the Missouri Department of Labor or proceed through the federal WHD.

When to Seek Legal Assistance

Navigating employment law can be complex, and employers often have legal teams ready to defend against wage claims. Consulting with an experienced employment attorney ensures that your rights are fully protected.

An attorney can help you accurately calculate your damages, gather compelling evidence, and navigate the intricacies of federal and state filing procedures. At Barrett & Farahany, our legal professionals hold employers accountable for wage theft. We understand the tactics companies use to avoid paying fair wages, and we aggressively advocate for the compensation you have earned.

If you are the victim of wage theft, you do not have to fight this battle alone. Contact the experienced employment attorneys at Barrett & Farahany today for a consultation. We will help you navigate the process of filing an unpaid wage claim and ensure you receive the justice and compensation you deserve.