This is far more complicated a question than you may think.  The business owner is avoiding payment of federal, state and local tax laws - unemployment, worker's comp and payroll taxes to name a few - and reporting him would encompass all those issues as well as others.  I know that this may sound simplistic but you should simply not work there if he is not running the business properly under the law.  I would worry that he does not have liability insurance as well. As for your wages, small claims may be the best avenue.  Good luck.