3 Signs You Are Underpaid

Fair Compensation and the Law

Generally speaking, employers have a responsibility to pay fair compensation in a timely fashion to employees for the work they do. However, the laws that govern what is considered fair compensation and timely payment can vary by state. If you believe that you are not receiving the pay you deserve, keep detailed records of the work you do and talk to your employer. It may be that there is an honest mistake that is keeping you from receiving all the pay that you deserve. 

1. You Are Not Receiving the Minimum Wage

The minimum wage is the lowest amount of money you can be paid per hour of work. The federal government imposes a federal minimum wage, and individual states can set their own minimum wages. The minimum wage for a state can be higher than the federal minimum, but it cannot be any lower. As of this writing, the federal minimum wage is $7.25 per hour, unless you are an employee who receives tips, in which case it is $2.13 per hour. It is illegal for an employer to pay you less than the federal minimum wage under any circumstances. If the minimum wage in your state is higher than the federal minimum, you are entitled to the higher wage of the two.

2. You Have Been Misclassified as an Independent Contractor

An independent contractor is a non-employee hired to do work for the company on a contract basis. Independent contractors retain control of the work they do and while they receive pay, they do not receive wages. They are not entitled to the rights and privileges afforded employees. For this reason, employers sometimes attempt to save money by treating employees as though they were independent contractors. However, it is not the employer who gets to decide who is an employee but the federal government. If you meet the criteria for an employee under the Fair Labor Standards Act, you are an employee with rights no matter what your employer calls you.

3. You Are Not Paid Overtime

Under federal law, there are 40 hours in a workweek. There is no law preventing your employer from requiring you to work more than 40 hours per week. However, if you work more than 40 hours in a single week, you are entitled to overtime pay. For every hour that you work over the usual 40 in a given week, you should receive one and one-half times your usual wage at least. If you cannot resolve the issue with your employer on your own, a legal team can help you file a lawsuit to recover what you are owed.

Additional Signs You May Be Underpaid

Underpayment isn’t always obvious. Beyond issues like overtime or minimum wage violations, there are more subtle red flags that could point to wage theft or noncompliance with labor laws.

• Not receiving meal/rest breaks when legally required: Many states mandate that employees be given uninterrupted breaks after working a certain number of hours. If you’re denied these or asked to work through them without compensation, you may be underpaid.
  
• Being paid late or inconsistently: Timely payment is your legal right. If your paycheck arrives late, is missing hours, or comes inconsistently, your employer could be violating both wage laws and your employment contract.
  
• Receiving commissions or bonuses without documentation: Commissions and bonuses should be clearly defined in writing. If you’re promised extra compensation but receive vague, irregular payouts without explanation, your employer may be withholding pay.
  
• Working “off the books” (paid under the table): If you’re paid in cash with no pay stub or tax documentation, you’re likely not being protected by wage and hour laws—leaving you vulnerable to exploitation and with no legal proof of earnings. 

What to Do If You Suspect Underpayment

If you think you’re not being paid fairly, taking early action is crucial. Here’s what you can do to protect yourself and strengthen your case:

• Start keeping detailed records: Log every hour you work, including breaks and overtime. Save pay stubs, schedules, emails, and any communication related to your pay or job responsibilities.
  
• Politely raise concerns with HR or your employer: Misunderstandings do happen, and in some cases, a conversation with your manager or HR can resolve the issue without further conflict.
  
• Don’t sign anything without understanding your rights: Employers may ask you to sign a document waiving your claims or acknowledging incorrect pay. Never sign anything under pressure—speak with a lawyer first.
  
• Consult an employment lawyer if the issue isn’t resolved: If your employer dismisses your concerns or retaliates, it’s time to speak to a legal professional. Many attorneys offer free initial consultations and can evaluate your case confidentially. 

How an Employment Litigation Lawyer Can Help

An employment litigation attorney doesn’t just provide legal advice—they advocate for your rights and help you recover the wages you’ve earned. Here’s how they can support your case:

• Investigate wage violations: Your lawyer will review pay practices, contracts, and evidence to determine where your employer went wrong.
  
• File official complaints: They can assist in filing with the Department of Labor or state labor boards, ensuring your complaint is backed by strong documentation.
  
• Negotiate or litigate: Whether through settlement discussions or court, an attorney will work to maximize your compensation and ensure compliance with labor laws.
  
• Recover damages: You may be entitled to back pay, penalties, interest, and legal fees—all of which your lawyer can help pursue.

Contact The Law Offices of Mark T. Hurt

If you suspect you’re being underpaid or that your wage rights have been violated, don’t wait to take action. At The Law Offices of Mark T. Hurt, we’re committed to helping workers understand their legal rights and recover the compensation they deserve. Whether you’ve experienced missed overtime, late payments, improper classification, or unclear commission structures, our experienced employment litigation attorneys can guide you through your options.

We offer confidential consultations to evaluate your case and provide honest, practical advice. There’s no risk in reaching out—and potentially thousands of dollars at stake if you’ve been underpaid over time. Protect your future, safeguard your financial stability, and get the legal support you need to hold your employer accountable.

Contact us today to schedule a free consultation and take the first step toward fair compensation.