Employment Law Information

How Employers Cheat Employees

By Joseph Devine

If you or your family depend on a paycheck to make ends meet, then you know how valuable a check is. People that work in order to provide a meal on the table usually work a sizable amount of hours, and even then, do not make enough money to have a financial security blanket. Yet, even though some employers know how dependent employees are to their paycheck, they still find a way to cheat the monetary distribution by taking more than is rightfully theirs.

Every year, millions of dollars are compensated to employees who either had money taken from their paychecks or were unpaid for certain hours worked. Some cases have involved employers cutting back on insurance policies, but continuing to take the same amount of money out of employee paychecks.

The most common cases have involved employers failing to provide:

Pay or Information due to Insurance

An employer can potentially lie to an employee about his or her insurance costs. The employer can then collect the employee’s money and even withhold information about the coverage and insurance plan.

Benefits

When it comes time for an employee to actually use his or her insurance, he or she may find he or she is under-insured. Some employees who are required to provide benefits may try to trick employees into thinking that he or she is not eligible for medical insurance, dental insurance, disability insurance, vision insurance, life insurance, stock options, 401(k) options, or other benefits.

Overtime Pay

Some employers do not compensate workers for scheduled time + overtime. The US Department of Labor requires employers who ask hourly paid employees to work overtime to also pay them for the additional hours.

Minimum Break Periods

It is federal law to allow employees 5-20 minute breaks. Employees must also be paid for the time they are on break. Lunch or meal breaks do not have to be compensated if the break lasts more than 30 minutes.

Payroll Taxes

If an employer fails to withhold the federal income tax, social security tax, and medicare tax, he or she can be audited and charged by the IRS.

Minimum Wage & Pay for Worked Hours

Employers are required to abide by the minimum wage laws of their respective state. Some employers fail to pay the minimum wage and for the amount of hours an employee has worked. Money that does not make it into the hands of employees almost always goes towards the company or employee.

For more resources on how employers cheat their employees and for legal help in a wage and hour dispute, contact the Houston employment lawyers of the Ross Law Group.

Joseph Devine

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