Despite laws being adopted in New Jersey to combat it, wage theft occurs in many sectors of the NJ workforce. Whether it be an undocumented worker who is being taken advantage of on a construction site, or a worker who is not paid overtime wages when they work over 40 hours a week.
Wage theft litigation filed in NJ makes up around 10% of civil cases filed under the Fair Labor Standards Act (FLSA). Many of those cases come from workers who claim they were paid less than minimum wage and overtime wages.
We will give you an overview of what you should know about wage theft in New Jersey in the following article. But, if you were taken advantage of by your employer, contact the Employment Law lawyers at Brandon J. Broderick, Attorney at Law. We can discuss your options and help you get the compensation you are entitled to.
Wage Theft Explained
The Fair Labor Standards Act was created to uphold employee rights, which includes overtime and minimum wage. Even with protections in place, wage theft is common. What is wage theft? It includes not paying employees the minimum wage, deducting money from an employee's paycheck illegally, refusing to pay overtime, and "off-the-clock" labor.
All workers, no matter what industry you work in, are entitled to an hourly minimum wage that varies from state to state. In New Jersey, all employees are required to be paid the minimum wage of $14.13 per hour. The minimum wage for 40 hours per week is $565.20.
When a business doesn't give its employees minimum wage or overtime pay, it is considered wage theft. Employers may be required to pay double the amount of overdue wages plus legal costs, although they may only be able to recover three years' worth of unpaid wages within a legal case.
An employment law attorney can help you collect money you are owed as a part of wage theft.
New Jersey Wage Laws You May Not Know About
New Jersey's Wage and Hour Law
There are laws in place, as mentioned, that provide the basis for employment compensation to protect the rights of the employees. In the New Jersey Wage and Hour Law (NJWHL), it states that: "Every employer shall pay to each of his employees’ wages at a rate of not less than ...for 40 hours of working time in any week and 1 1/2 times such employee’s regular hourly wage for each hour of working time in excess of 40 hours in any week, except this overtime rate shall not include any individual employed in a bona fide executive, administrative, or professional capacity."
August 2018 saw the enactment of the New Jersey Wage Theft Act (WFT), which allows employees to recover unpaid wages up to six (6) years prior to filing a lawsuit. Additionally, it allows employees to recover all wages "... plus an amount of liquidated damages equal to not more than 200 percent of the wages lost or of the wages due, together with costs and reasonable attorney's fees as are allowed by the court."
Employees are not required to be paid overtime rates for working more than 8 hours in a day, or on weekends or holidays. Overtime is only required for any hours in excess of 40 hours for the week. However, if an employee works as an executive, administrative, professional, or outside sales, they are exempt from overtime pay.
New Jersey's Prevailing Wage Act
According to the New Jersey Prevailing Wage Act (PWA), employees who work for contractors or subcontractors under contract to provide public work, such as construction workers, must be paid a prevailing wage rate, and be paid entirely by public funds. The salaries and fringe benefits that are agreed upon on the day the contract is awarded are the applicable prevailing wage rates.
New Jersey’s Construction Industry Independent Contractor Act
By falsely classifying workers as independent contractors, employers in the construction industry are prohibited by New Jersey's Construction Industry Independent Contractor Act (CIICA) from withholding these workers' Social Security and other benefits, while also lowering their obligations with regard to State and federal tax withholdings and related obligations.
Are You A Wage Theft Victim?
Has an employer withheld wages you are entitled to? Our team of experienced NJ employment law attorneys can help.
For years, the team at Brandon J. Broderick, Attorney at Law has assisted clients in defending their rights.
To arrange for a free consultation, contact us today.