Nationwide Law Firm Faruqi & Faruqi, LLP Looks at the Deadlines for Filing Wage Claims
By: Faruqi
Tags: Employees, Law, Lawyers, Employee Engagement, Professional

It has been wisely and correctly stated that the essential basis of any professional relationship is transparency and trust. Unfortunately, despite an overwhelming abundance of case law, media reports and available resources, some employers nevertheless violate the trust that governs their relationship with their current and former employees by withholding a portion of legally-earned and owed wages — and in some cases, outright committing wage theft. Even more alarming is that the problem is not getting better; it is getting worse. For example, in 1997 there were 1,597 Fair Labor Standards Act (FLSA) cases filed in federal court, while in 2017 the number surged to 7,858.

“Wage and hour violations occur in all sectors and industries”, according to a representative from Faruqi & Faruqi, LLP, a national practice that focuses on complex civil litigation in the areas of wage & hour litigation, securities, merger and transactional, shareholder derivative, antitrust, and consumer class action. Despite this widespread transgression, the good news is that affected workers can and should file a claim to fully recover what is owed to them, while at the same time send a clear, strong message that these kinds of blatant, egregious violations are unacceptable and will not be tolerated. Those who fail to heed this will face significant consequences both in the court of law and the court of public opinion.

Deadlines for Filing Wage Claims

The FLSA entitles workers (including those who have since resigned or been terminated) to file a claim for unpaid wages for amounts owed within the last two years. This deadline extends to three years in cases where the employer’s illegal conduct is alleged (and ultimately deemed) to be willful rather than unintentional.

A representative from Faruqi & Faruqi, LLP states that “there are two scenarios that employers will be deemed to have willfully violated the FLSA. The first is if they knew that their actions were prohibited. The second is that they demonstrated a reckless disregard, despite knowing their actions were prohibited.”

Considering this, many states have passed their own laws, which provide greater protection and a longer duration to file a claim. For example, in New York aggrieved workers have six years to file a claim.

According to Faruqi & Faruqi, LLP, the retroactive aspect of filing a wage claim does not mean that the wage theft must have started in during the filing deadline period. Rather, it means that relief can only be sought for unpaid wages and possibly liquidated damages — which if granted is equal to the amount owed in unpaid wages, thus effectively doubling the amount during that period. For this reason, victims are urged to immediately consult with an attorney and, if appropriate, file a claim at the earliest possible opportunity. Delays could end up costing them thousands of dollars.

Federal vs. State Wage Laws

Some employers attempt to defend what amounts to wage theft by claiming that they are subject to federal laws rather than state laws. For example, they take the position that they do not need to pay more than $7.25/hour, since that is the prevailing federal hourly minimum wage. However, such employers are categorically and indefensibly mistaken.

Faruqi & Faruqi, LLP states that “workers are entitled to the greatest benefits and protections available, which are typically those provided by their applicable state law.” For example, at the current time in New York the minimum wage as determined by state law is $11.80 per hour in most of the state, $13.00 in Long Island and Westchester, and $15.00 in New York City for employers with 10 workers or less. As such, employers in these jurisdictions must pay at least these state-level hourly wage rates. They cannot downgrade to the federal wage rate. Any attempt to do so can and should result in a successful wage claim, which may also include liquidated damages and the immediate implementation of corrective action by the employer.