What do I do if my boss is underpaying me?

Find out what you can do if your employer refuses to pay you minimum wage.

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Question

I work part-time for a business with only six workers, and I make $5 per hour. The company sells things online for people who don't have the time or know-how to do it themselves, then takes part of the proceeds as a fee. The owner told me he doesn't have to pay minimum wage because it is such a small business. Is this true?

Answer

First of all, hats off to you for looking up your rights. As you have no doubt discovered, your boss is paying you less than the federal minimum wage, set out in the Fair Labor Standards Act. (The minimum wage is currently $7.25.) Any company that engages in "interstate commerce" must pay the federal minimum wage, no matter how many or how few employees it has. As a practical matter, this means the vast majority of businesses are subject to the minimum wage -- and, based on your description of what it does, your company is too.

Your state's minimum wage might be even higher, and your local county or city government might also have a more generous minimum wage. Employers have to follow whichever wage law is most generous to employees.

As for what you can do about this situation, your first course of action should be to tell your employer, in a respectful tone, that he is wrong, Wrong, WRONG! In other words, point out that he is legally required to pay you the minimum wage. If those pleas fall on deaf ears, contact your state labor department. If your employer has violated the law, you might be entitled to collect back pay -- the money you would have earned had you been paid the actual minimum wage rather than the imaginary "I only have six workers so I don't have to follow the law" minimum wage.

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By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

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