Federal law protects pay for workers
Workplace laws and rules affect most aspects of work, including salary and overtime pay.
If a company fails to pay an employee, the usual reasons are that it believes the employee did not perform the work to justify the pay or that it is experiencing financial difficulties and is unable to pay.
If you believe your employer did not compensate you fairly, you have certain rights. You can file a claim against the employer with the U.S. Department of Labor. The department may investigate, and if it rules in your favor, it will send a letter to your employer demanding that you be paid.
What happens if the employer fails to pay in a specified amount of time? You can get a lawyer to file a lawsuit against the employer for unpaid wages under the Fair Labor Standards Act. This law, which requires all employers to pay employees a minimum wage plus overtime for any hours worked over 40 per week, includes a provision that enables an employee to recover attorney's fees. The act covers nonexempt employees, i.e., unskilled laborers, minors and those who work by the hour. Exempt employees, who are not covered by the act, include professionals, skilled workers, volunteers, independent contractors, farm workers, mechanics, and computer programmers, among many other skilled workers.
Another option to filing a lawsuit is to file in small claims court if the amount is under $5,000. In small claims court, you often represent yourself. The filing and pre-trial procedures for small claims cases are simpler than in other types of cases. However, the court can order a judgment only for money. If the company goes into Bankruptcy, you may still be able to collect the amount due you. You can file a claim with the U.S. Bankruptcy Court. Wages have priority over other pending business debts. Be aware that the new bankruptcy law, which affects consumers, will also make it tougher for businesses that file for bankruptcy protection. The law goes into effect on October 17, 2005.
Note: This information was prepared as a public service by the Illinois State Bar Association and is a joint project with the Illinois Press Association. Its purpose is to inform citizens of their legal rights and obligations.
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If you have questions about the application of the law in a particular case, consult your lawyer. The law is constantly changing. Information on this site or any site to which we link does not constitute legal advice.