The FLSA establishes a federal minimum wage for covered nonexempt employees. A minimum-wage violation can occur even when the stated hourly rate appears lawful if unpaid work time, deductions, tip practices, or flat-rate compensation reduce actual wages below the required amount.
Common Minimum-Wage Violations
- Failing to pay for all compensable hours worked.
- Making deductions for uniforms, tools, shortages, walkouts, or other expenses that reduce wages below the legal minimum.
- Paying a flat day rate, piece rate, or salary that produces an hourly equivalent below minimum wage once all hours are counted.
- Using an invalid tip credit or unlawful tip pool.
- Requiring tipped employees to perform excessive non-tipped work without proper compensation.
- Misclassifying an employee as an independent contractor and failing to guarantee minimum wage.
Counting All Hours
The wage calculation must account for compensable pre-shift and post-shift work, interrupted meal periods, required meetings or training, and other work the employer knows or should know is being performed. An employee cannot lawfully “volunteer” unpaid time for a private employer when the work is compensable under the FLSA.
Remedies
A qualifying employee may recover unpaid minimum wages, an additional amount as liquidated damages, and attorneys' fees and costs. The FLSA also prohibits retaliation against employees for asserting protected wage rights.
Records
Employers have recordkeeping duties, but an employer's failure to keep accurate records does not necessarily defeat a claim. Employees should preserve schedules, pay stubs, time-clock screenshots, messages, calendars, location data, and other evidence that can help reconstruct hours worked.