Wrongful Termination and Wage & Hour Violations

When employers fail to properly compensate employees or terminate them for unlawful reasons, it creates both immediate and long-term consequences for workers and their families. Wage and Hour violations can affect entire classes of similarly situated employees who are subject to the same illegal or unfair policy. An individual employee is wrongfully terminated when the circumstance of their termination is illegal under state or federal law. The complexity of employment law requires careful analysis of each situation to determine whether violations have occurred.

Wage & Hour Violations

Minimum Wage & Overtime Issues

One of the most common wage violations occurs when employers fail to pay minimum wage or properly calculate overtime hours. The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least minimum wage for all hours worked and overtime at one-and-a-half times their regular rate for hours worked beyond 40 in a workweek.

Violations often occur through improper timekeeping, unauthorized deductions, or failure to count all compensable time. States like California have even more stringent wage and hour laws and regulations than the FLSA.

Meal & Rest Break Violations

State laws often mandate specific meal and rest breaks for employees. Common violations include requiring employees to work through breaks, interrupting break periods, or failing to provide breaks altogether. These violations can accumulate significantly over time, leading to substantial wage claims.

Off-the-Clock Work

Employers frequently violate wage laws by requiring or permitting employees to work off-the-clock. This might include pre-shift preparation, post-shift cleanup, or work performed from home. All time worked must be compensated, regardless of when or where it occurs. If you have to work off the clock, you are likely the victim of wage theft.

Employee Misclassification

Independent Contractor Misclassification

A prevalent form of wage violation involves misclassifying employees as independent contractors. This practice allows employers to avoid providing benefits, paying overtime, and covering employment taxes. However, the actual working relationship, not the employer’s label, determines proper classification.

Exempt vs. Non-Exempt Status

Employers often incorrectly classify workers as exempt from overtime requirements. Simply paying a salary or giving an impressive job title does not automatically make an employee exempt. The actual job duties and level of independent decision-making determine exempt status.

Wrongful Termination Protections

Protected Activities

Employment law prohibits termination in retaliation for engaging in protected activities such as:

• Reporting workplace safety violations – Employees have the right to report unsafe working conditions to regulatory agencies like OSHA without fear of losing their jobs.
• Filing wage complaints – If an employee files a claim for unpaid wages or overtime, their employer cannot legally retaliate against them.
• Taking protected medical leave – Under laws like the Family and Medical Leave Act (FMLA), employees are entitled to take medical leave for themselves or a family member without risking termination.
• Participating in investigations – Workers who cooperate in workplace investigations, whether related to discrimination, safety, or wage violations, are legally protected.
• Reporting discrimination or harassment – Employees cannot be fired for reporting workplace discrimination or harassment based on race, gender, age, or other protected characteristics.

Discrimination Protections

Terminations based on protected characteristics violate both federal and state laws. Protected characteristics typically include:

• Race, color, and national origin – Employers cannot fire an employee based on their racial identity, ethnicity, or country of origin.
• Gender and sexual orientation – Employees are legally protected from termination due to gender identity, gender expression, or sexual orientation.
• Age and disability status – The Age Discrimination in Employment Act (ADEA) and Americans with Disabilities Act (ADA) protect employees from being fired due to their age (40+) or disability.
• Religious beliefs – Employers must make reasonable accommodations for employees’ religious practices unless it poses an undue hardship.
• Pregnancy status – The Pregnancy Discrimination Act (PDA) prohibits firing employees due to pregnancy, childbirth, or related medical conditions.

Documentation Requirements

Recordkeeping

Employers must maintain accurate records to ensure compliance with wage and hour laws. These records include:

• Hours worked – Employers must maintain accurate records to ensure compliance with wage and hour laws–if your paystubs are missing or inaccurate, or even worse, altered to be false, you and your co-workers may be entitled to significant compensation.
• Wages paid – Detailed payroll records should reflect regular wages, overtime, bonuses, and deductions.
• Employee classifications – Proper classification of employees as exempt or non-exempt is critical to compliance.
• Overtime calculations – Employers must correctly calculate and compensate employees for overtime hours worked.
• Break periods – Documentation of legally required meal and rest breaks helps avoid wage disputes.
• Leave requests and approvals – Employers should maintain records of FMLA leave, sick leave, and other approved absences.

Employee Rights

Workers have the right to:

• Review their employment records – Employees can request access to their payroll and personnel files to verify accuracy.
• Request wage audits – If they suspect wage theft, employees can ask for an audit of their work hours and payments.
• File complaints without retaliation – Laws protect employees who file wage, discrimination, or safety complaints from employer retaliation.
• Seek legal representation – Workers have the right to consult an employment attorney if they believe their rights have been violated.
• Join collective actions – Employees can participate in class-action lawsuits against employers engaged in widespread violations.

Legal Remedies

Available Compensation

Successful wage and hour claims may result in:

• Back pay for unpaid wages – Employees may recover wages their employer failed to pay.
• Overtime compensation – Workers owed overtime can claim their rightful earnings.
• Meal and rest break premiums – Compensation may be awarded for missed or denied breaks.
• Waiting time penalties – If an employer delays final paychecks, employees may receive additional penalties.
• Interest on unpaid wages – Employees may be entitled to interest on unpaid earnings.
• Attorney fees and costs – Some laws require employers to cover legal fees if they lose a wage dispute case.

Wrongful Termination Damages

Victims of wrongful termination may recover:

• Lost wages and benefits – Compensation for earnings lost due to wrongful termination.
• Future lost earnings – If an employee struggles to find comparable work, they may receive future earnings.
• Emotional distress damages – Employees suffering stress, anxiety, or depression due to wrongful termination may claim damages.
• Punitive damages in egregious cases – In severe cases, courts may award punitive damages to deter employer misconduct.
• Reinstatement in appropriate situations – Some cases may result in reinstatement if the employee wishes to return to their position.

Preventive Measures

Employee Rights Education

Workers should:

• Understand their classification status – Know whether they are correctly classified as exempt or non-exempt.
• Keep personal records of hours worked – Maintain a log of all hours worked, including overtime.
• Document workplace concerns – Keep a written record of any workplace violations or employer misconduct.
• Know their rights regarding breaks and overtime – Be familiar with wage and hour laws in their state.
• Recognize signs of retaliation – Understand how employers might illegally retaliate against complaints.