Wage Theft: What You Need To Know

One of the most important topics in modern employer/employee relations: wage theft. According to a recent study published by the Economic Policy Institute, wage theft has become an “epidemic” in the United States, costing workers hundreds of millions of dollars each year.

 

The problem of wage theft has not gone unnoticed. Many state and local governments have responded with strong regulations, for example, and many unions have made wage theft a central theme in their platforms. Last but certainly not least, the media has taken notice, offering frequent coverage of this all-too-frequent phenomenon.

 

The definition of wage theft is broader than you might imagine. You probably already guessed that failing to pay employees the full amount owed to them constitutes wage theft. But did you know that failing to pay in a timely fashion, failing to allow employees the breaks allotted to them, and failing to give employees 100% of the tips given to out to them also constitute diverse forms of wage theft? Because wage theft can be committed in a variety of ways, it is a topic of great concern for business owners everywhere. As Inc.com points out, employment laws and regulations are often times complex, and it’s easy to get overwhelmed and/or confused — especially if you are a small business owner handling a myriad of responsibilities all by yourself.

 

Committing wage theft, either by accident or on purpose, comes with a variety of negative consequences. Not only are you liable to legal penalties such as fees or even jail time — you are also subject to negative press. In short, committing wage theft is not only unethical, it is also a recipe for a PR nightmare!

 

Managing the financial and legal ramifications of employer/employee relationships isn’t always easy. That’s why an increasing number of small businesses are choosing to work alongside professional HR firms. If you are interested in learning more about HR assistance, visit Precise Payroll online today.