How to Sue Your Employer for Unpaid Wages

Your rights at a glance

  • Yes, you can sue your employer for unpaid wages in Arizona.
  • Arizona law may entitle you to triple the wages your employer owes.
  • You can sue for overtime, off-the-clock work, minimum wage, and more.
  • Wage claims have strict deadlines, so it is important to act promptly.

If any of these apply to your situation, speak with an attorney about your rights.

Arizona law requires employers to pay workers every dollar they earn for every hour worked, at or above minimum wage, with overtime after 40 hours in a week being required by federal law. When employers fail to meet that obligation, employees have the right to sue. 

Under the federal Fair Labor Standards Act, the employer may be required by law to cover the attorney's fees and costs if you win.

Here we explain to you what a wage claim is, what employer behavior qualifies as a violation, how to file a lawsuit in Arizona, and what you can recover.

The warning signs of unpaid wages in Arizona, and your right to sue.

What is a Wage Claim?

A wage claim is a formal legal claim filed by an employee against their employer. In it, the employee alleges that the employer has failed to pay all wages they are owed. A wage claim is an important resource for protecting workers’ rights and ensuring fair pay practices in the workplace.

This can include situations like not being paid overtime or minimum wage, working off the clock, unpaid bonuses and commissions, having deductions taken out of your paycheck that weren’t authorized, or not receiving your final paycheck.

If any of these apply to your situation, contact our office about whether you have a viable claim. Talk to an employment attorney.

Common Causes of Unpaid Wages

1. Employer negligence

Employers may unintentionally fail to pay employees for hours worked due to poor record-keeping or payroll system malfunctions.

2. Failure to pay overtime for hourly workers

Hourly workers who regularly work beyond their scheduled hours are legally entitled to overtime pay when they have unpaid wages for time worked beyond 40 hours in a workweek. However, we have helped people whose employers might try to avoid paying them for overtime by manipulating schedules or pressuring employees not to claim overtime.

It is important to note that this is the same situation with some employers who can try to pressure employees to answer emails, take calls, or complete tasks outside their scheduled work hours or during unpaid breaks or lunches.

3. Misclassification of employees

Misclassifying employees as independent contractors can lead to unpaid wages, as contractors are not entitled to the same benefits and protections as employees. This includes minimum wage, overtime, or other benefits required by law.

4. Wage theft

This involves practices such as withholding payments, not paying for all hours worked, or violating minimum wage laws. Employers may engage in wage theft intentionally, leading to financial losses for employees and legal repercussions for them.

5. Off-the-clock work

Working off the clock refers to any work done by an employee that is not compensated.  It can include having to perform work duties before your shift starts, having to perform work during unpaid lunches or breaks, or having to work past the conclusion of your shift without compensation.

Ty Frankel on unpaid off-the-clock time for remote workers.

It often occurs in industries where the worker may have a scheduled shift, but the work does not allow the worker to leave immediately.  For example, if you take calls on a phone, you may have to prepare for your first call before the start of your shift but may not be clocked in until you take your first call.  This time is often compensable, especially when you’re routinely having to spend time performing those duties off the clock.

Signs Your Employer May Owe You Wages

The following are concrete signals that your employer may owe you money. If any of these match your situation, you likely have a claim worth discussing with an attorney.

  1. Your paycheck is consistently short, even when you can't pinpoint why. Recurring small discrepancies (a few minutes shaved here, a break deducted there) can add up to hundreds or thousands of dollars over time.

  2. You work through breaks or lunches but aren't paid for that time. If your employer expects you to remain available or continue tasks during unpaid breaks, that time may be compensable.

  3. You were told you're an independent contractor, but the company controls your schedule, tools, and how you do the work. A job title or contract label doesn't determine your legal status; your day-to-day relationship with the employer does.

  4. Your final paycheck was late or incomplete after leaving a job. Under ARS § 23-353, the deadline depends on how your employment ended: discharged employees must be paid within 7 working days or the next regular payday, whichever is sooner; employees who quit must be paid by the next regular payday for the pay period in which they left.

  5. You complained about your pay, and something changed at work shortly after. Demotion, reduced hours, schedule changes, or termination following a wage complaint may constitute illegal retaliation, a separate legal violation on top of the unpaid wages.

Does this sound familiar?

Can you sue for Unpaid Wages?

The quick answer is yes. You can absolutely sue for unpaid wages

Every employee has the right to be compensated fairly for their time and labor, and federal and state laws exist to protect those rights. You can take legal action if your employer fails to pay you the minimum wage or overtime, fails to pay you for tips that you earned, depending on the circumstances, and fails to pay you for time worked off-the-clock.

This applies whether the issue stems from wage theft, misclassification, or other practices that lead to unpaid wages.

We invite you to read our experience in unpaid wage litigation to understand how we might help you.
 

How Much Can You Sue for When Pursuing Unpaid Wages?

There is no straightforward answer since many factors can influence the amount you can sue for. These include some of the following:

  • The amount of unpaid wages

  • The length of time the wages were unpaid

  • The number of hours worked without pay

  • The state laws where you live

  • The employer’s willingness to settle

  • Additional damages such as interest and penalties.

  • The attorney’s fees.

How Can I Sue an Employer for Unpaid Wages?

1. Seek legal assistance if necessary

If your case is more complex or you detect other violations at play, discussing it with an attorney will allow a full assessment. This will help to get your case on track.

An attorney can assess your case, navigate the legal complexities, determine the best legal strategy, represent you in court, and ensure you recover the maximum compensation you deserve.

Remember that we are here to help you! Contact us now, and we will provide valuable guidance and help determine the strength of your case.

2. Understand your rights as an employee

Familiarize yourself with the Fair Labor Standards Act (FLSA) and your state’s labor laws regarding minimum wage, overtime pay, and other wage-related issues.

FLSA
The federal law requiring employers to pay minimum wage and 1.5x your regular rate in overtime for hours over 40 per week.

3. Gather evidence of unpaid wages

It can help if you have detailed records of your work hours, including dates, start and end times, and any breaks taken. However, it is important to mention that this documentation is not mandatory to pursue a claim in many cases. It is great if you have it, but if you don’t, we can probably still help you prove your claim.

Federal law requires employers to keep accurate records of all the time you work. If you worked off the clock or your employer’s records are inaccurate because they fail to account for all the time you worked, your own estimate of the amount of time you worked during a typical week should be sufficient evidence to support your case. Be sure to read our FAQ page for more information. 

Another action that can help is collecting all available pay stubs to demonstrate discrepancies between what you were paid and what you were owed. We also recommend reviewing a written employment contract for details regarding your compensation and any overtime pay policies as well.

In addition, if you have it, you might want to compile any emails, texts, or other forms of communication with your employer, documenting your concerns about unpaid wages.

4. Alternative to suing

You can file a claim with the Industrial Commission of Arizona or your state’s agency that helps with unpaid wages. However, please note that this has several potential downsides:

Limited scope of claims. While the Industrial Commission of Arizona can handle wage claims, its jurisdiction is limited to specific circumstances. For example, if your employer owes you more than $12,000.00 in unpaid wages, you cannot file an unpaid wage complaint with the Industrial Commission of Arizona.

Recovering for all the wage violations at issue. Typically, the Industrial Commission of Arizona will investigate the unpaid wage claim, focusing on getting you paid what you say you are owed.  However, other issues are often at play beyond simply getting back wages for missing paychecks.  In addition to not receiving a paycheck, your employer may also be violating federal and state wage laws in other ways.  

A lawyer can help you ensure you recover the maximum wages you are owed, including many wage violations that may be identified through a proper analysis of the situation.

You can file a lawsuit in court, and you don’t have to pursue your unpaid wage claims through a government agency at all. 

Here is what the process may look like.

Consult with an attorney. You can get legal advice from an experienced labor and employment attorney to assess the strength of your case, understand your legal options, and guide you on the legal procedures.

Prepare and file the lawsuit. Your attorney can draft a complaint detailing the allegations and the details of the claim. After that, the complaint will be filed with the appropriate court. Finally, you will serve your employer with a copy of the complaint and a summons to appear in court.

Pre-trial process. The employer should file a response to the complaint, either admitting or denying the allegations. Next, both parties exchange information and evidence, which may include interrogatories, depositions, and document requests. Then, either party may file motions to dismiss the case for summary judgment or other procedural requests.

Settlement negotiations. The parties may agree to participate in mediation or arbitration to try to reach a settlement. Note that the vast majority of cases settle before going to trial. If an agreement is reached, both parties will sign a settlement agreement outlining the terms, including the payment of unpaid wages.

Trial. If no settlement is reached and summary judgment is denied, the case proceeds to trial, during which both parties present their evidence and arguments. The judge or jury will render a verdict; if successful, the court may order the employer to pay the owed wages, potentially including back pay and other compensation.

What Do I Get If I Win My Lawsuit?

An employee who successfully obtains unpaid overtime or the minimum wage under federal law may be entitled to liquidated damages, which are double the amount of the unpaid wages owed.

Liquidated damages
A penalty under the FLSA equal to your unpaid wages, which effectively doubles what your employer owes you.

Under federal law, an employee who is owed back wages under FLSA may be entitled to liquidated damages, which is double the amount owed.

Treble Damages
Under Arizona law, a penalty of three times the unpaid wages may apply when an employer willfully fails to pay what is owed.

When to Seek an Unpaid Wage Claim Attorney?

While you can navigate the process of recovering unpaid wages on your own, there are situations where seeking an unpaid wage claim attorney becomes highly beneficial. It can ensure you effectively pursue your claim and navigate the complexities of labor laws.

You should consider seeking an unpaid wage claim attorney in any of the following circumstances:

  • Complex or large claims. If you are owed a large sum in unpaid wages, overtime, commissions, or bonuses, an attorney can help ensure you recover the maximum amount. A lawyer can also be helpful if the unpaid wage issue you’re experiencing impacts other employees because they may be able to pursue your claims on your own behalf and on behalf of the other employees impacted.  A lawyer can also help you make sure you recover all the unpaid wages you’re due, not just one category.

  • Complex employment terms. It is highly recommended that you hire an attorney for complex employment contracts, commission structures, or bonuses.

  • Employer retaliation. If your employer retaliates against you for seeking unpaid wages, an attorney can help protect your rights and potentially seek additional damages for retaliation. Retaliation is illegal: federal and Arizona law both prohibit it in most circumstances, and it creates a separate legal claim on top of your wage claim.

  • Lack of response from the employer. If your employer ignores your requests for unpaid wages or refuses to negotiate, an attorney can apply legal pressure and represent you in negotiations or court.

  • Potential for higher recovery. Attorneys can help you recover statutory damages, penalties, interest, and attorneys’ fees.

Benefits of hiring an attorney

  • Your attorneys’ fees may be covered by your employer. Under the FLSA, your employer may have to pay for your attorneys' fees and costs when you prevail.

  • Legal expertise. Attorneys like us at Frankel Syverson PLLC deeply understand labor laws and can identify violations you might not be aware of and that a government agency may not investigate.

  • Negotiation skills. We can effectively negotiate settlements with employers.

  • Representation in court. If your case goes to trial, we can (and will) represent you and present your case professionally.

  • Peace of mind. Thanks to our legal expertise, you can be sure that you are in good hands, reducing stress and allowing you to focus on your life and work.

How to choose the right attorney?

You should seek an attorney with experience in labor and employment law and handling unpaid wage claims.

Remember to have an initial consultation with a labor and employment lawyer to discuss your specific situation and receive professional advice on whether legal representation is necessary.

Don’t hesitate to reach out to us if you feel overwhelmed!

FAQ

 

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