How to Sue Your Employer for Unpaid Wages

Unpaid Wages Lawsuit Guide

Fair wages are a fundamental right for every employee. When you’re not paid what you’ve earned, it can be both frustrating and financially damaging. Today, we’ve shared a guide to walk you through a hypothetical scenario where you haven’t received all payments due and outline the steps for a lawsuit.

Unpaid Wages Case Scenario

Let’s set up an imaginary circumstance. You’ve been working as a full-time employee at XYZ Company for 18 months. You consistently put in overtime hours and fulfill all your job duties. However, you begin to notice discrepancies in your paychecks. Some of your overtime hours are missing, and in a few pay periods, you aren’t compensated at all. You bring up the issue with your manager and HR department, but after months of back-and-forth with no resolution, you realize you need to take legal action to recover your unpaid wages.

Unpaid Wage Lawsuit Legal Grounds

Before taking any legal action, it’s important to understand the laws that protect you as an employee. Both federal and state laws exist to ensure that you are fairly compensated for your work.

Federal Laws

Under the Fair Labor Standards Act (FLSA), your employer must pay you at least the federal minimum wage and provide overtime pay for hours worked over 40 in a workweek. The FLSA also mandates that you receive your salary on time. If your employer fails to pay you for overtime or skips pay periods, they may be violating this federal law.

South Carolina Payment of Wages

In this State, you’re also protected under the South Carolina Payment of Wages Act. This SC law requires employers to pay employees all salary wages due — including overtime — on within 48 hours of the day of separation, or the next regularly-scheduled payday, not to exceed 30 days.

Breach of Contract

If you have a formal employment contract that specifies your pay and work hours, your employer’s failure to payment could also be considered a breach of contract, providing another legal avenue for you to pursue.

Unpaid Wages: Steps to Sue Your Employer

1. Document the Issue

Start by gathering and organizing all relevant documentation. This includes records of the hours you worked, pay stubs, and any communications you’ve had with your employer regarding your unpaid wages. These records will be crucial evidence if your case goes to court.

2. File a Complaint With the Labor Department

You can file a wage claim with the U.S. Department of Labor or the South Carolina Department of Labor, Licensing, and Regulation. This typically involves submitting a complaint form detailing the wage violations. The labor department will investigate your claim, and if they find that your employer violated wage laws, they may require the company to pay you your payments owed.

3. Consult an Employment Lawyer

Given the complexities of wage disputes, it’s wise to consult an employment lawyer, particularly one with experience in South Carolina labor law, like us. We can help you understand your rights under both federal and state laws and assist in building a strong case. We can also advise you on whether to pursue additional damages under the SC Wage Payment Act.

4. Initiate a Lawsuit

If the issue remains unresolved through the labor department or directly with your employer, you may need to file a lawsuit. Depending on the amount of unpaid wages, you could file your claim in small claims court or a higher civil court.

5. Potential Outcomes

After filing the lawsuit, a few possible outcomes could occur. You and your employer might negotiate a settlement, where you agree to drop the lawsuit in exchange for compensation. If no settlement is reached, the case may go to trial, where a judge or jury will decide the outcome. If you win, you could receive not only your unpaid wages but also additional damages and reimbursement for your legal fees.

Unpaid Wages Legal Defense with Henderson & Henderson

As an employee, you deserve to be paid fairly for the work you do. If you find yourself in a situation where your employer isn’t paying you what you’re owed, it’s important to take action. Though it is a complicated process, working with attorneys familiar with employment law like us can make the whole thing easier. If you’re facing a similar scenario as the hypothetical scenario above, don’t hesitate to contact HH law firm in Charleston – or call (843) 212–3188 – to set up a consultation.