Wage theft is the most common labor violation in the United States — and most victims never realize it's happening. It doesn't always look like a stolen paycheck. More often it looks like answering emails after hours, buying your own work supplies, or being told you're "salaried" so overtime doesn't apply. This guide breaks down the three most common wage and hour issues employees face today.
The Fair Labor Standards Act (FLSA) is the primary federal law governing wages and hours. It sets the federal minimum wage, requires overtime pay for non-exempt employees, and mandates that employers pay for all hours "suffered or permitted" — meaning any work the employer knew about or should have known about, even if it wasn't explicitly requested.
Most states have their own wage and hour laws that provide additional protections. When state law is more generous than federal law, the state standard applies. California, in particular, has some of the most employee-protective wage laws in the country.
"Off-the-clock" work refers to any work performed outside of recorded hours — before clocking in, after clocking out, during unpaid breaks, or outside scheduled shifts. Under the FLSA, all of this time must be compensated if the employer knew or should have known the work was being performed.
The "I didn't ask them to work" defense doesn't hold up. If a manager sees an employee working off the clock and says nothing, that is "suffering or permitting" the work — and it must be compensated. Employers cannot benefit from work they know is being performed and then refuse to pay for it.
Federal law under the FLSA does not explicitly require expense reimbursement — but it does require that wages not fall below minimum wage after deducting business expenses. Many states go further. California, Illinois, Massachusetts, Montana, and Iowa have explicit statutes requiring employers to reimburse employees for all necessary business expenses.
Under California Labor Code § 2802, employers must reimburse employees for all necessary expenditures incurred in the discharge of their duties. This is one of the broadest expense reimbursement laws in the country — and it applies regardless of whether the employer had a written reimbursement policy. California employees can consult a wage and hour attorney at Delshad Legal about expense reimbursement claims.
Remote work has created a new category of wage and hour disputes. When the office is your home, the boundaries between work time and personal time blur — and employers sometimes exploit that ambiguity. The law is clear: the FLSA applies equally to remote workers. If you are non-exempt, you must be paid for all hours worked, wherever you work them.
Under the FLSA, non-exempt employees must receive overtime pay of at least 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. This is not optional — employers cannot waive it, and employees cannot agree to forgo it.
Being salaried does not automatically make you exempt from overtime. To qualify for the overtime exemption, an employee must meet both a salary threshold (currently $684/week) and a duties test — their job must primarily involve executive, administrative, or professional work. Simply paying someone a salary does not make them exempt.
Use our documentation checklist to organize your evidence, and our case strength quiz to assess your situation.
This article is for general educational purposes only and does not constitute legal advice. Laws vary by state and change over time. Consult a qualified employment attorney about your specific situation.
Most employment attorneys offer free consultations and work on contingency — typically 40–45% of the recovery, with no upfront cost.
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