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Filing a claim

An employee who is filing a claim that you have violated wage laws has two options. The employee can either file a claim with the Department of Labor or file a lawsuit. In either case, you should consider contacting an experienced employment attorney to decide how to respond to the employee's filing a claim.

• Filing a claim with the Department of Labor
• How long does the employee have to file a claim?
• Department of Labor procedures
• Defending against the employee's claim
• Filing a lawsuit
• Can I fire a worker who filed a claim against me?
• Find a Business Lawyer Now

Filing a claim with the Department of Labor

The United States Department of Labor (DOL) investigates claims filed by employees for unpaid minimum wage and overtime.

Your own state probably also has an agency that investigates wage claims. Sometimes the state agency gives the employee greater protections.

How long does the employee have to file a claim?

An employee can normally file a claim with the DOL for two years of back wages and overtime pay. If the employee can show that you knew you were violating wage laws, he or she may recover three years of wages.

Department of Labor procedures

DOL must investigate the employee's claim, perhaps by sending an agent to your workplace. DOL should act as if it received an anonymous tip, and the employee's name should not be used in the investigation. DOL investigators have the power to require you to pay the employee, as well as other employees who the DOL determines were wrongly denied wages.

Defending against the employee's claim

To respond to a claim for unpaid wages, it's best if you have a good record of the hours the employee worked. If an employee thinks he or she is owed back wages or overtime, you should make sure that you kept a record of the dates and times the employee worked, as well as a copy of any paycheck or pay stubs you provided to the employee.

Filing a lawsuit

Instead of filing a claim with a government agency, the employee may decide to sue you to recover lost wages and overtime. If you are sued by an employee for unpaid wages, you should immediately contact a lawyer who specializes in employment law.

Can I fire a worker who filed a claim against me?

It is against the law for you to fire, demote, deny a promotion to, or take any other action against an employee because the employee filed a claim or sued you for wages or overtime pay - even if the employee lost the suit or claim, so long as the employee made it in "good faith."

If you take any such "retaliatory" action against the employee, you might risk having a whole new claim or lawsuit brought against you by the employee based on the alleged retaliation. For more information on filing a claim, contact a business lawyer near you.