Is Your Employer Stealing Your Wages? 7 Signs of Wage Theft in NJ

Introduction: Working Harder But Earning Less? It Might Be Wage Theft.

Let’s be honest—most of us don’t wake up excited to go to work. But we do expect to be paid fairly for the time we put in. So what happens when your paycheck seems off… again? Or when your boss asks you to clock out but keep working?

If any of this sounds familiar, you’re not alone—and it could be more serious than you think. Wage theft in New Jersey is a growing problem, especially in industries where long hours, tipped wages, and misclassification are common.

This article breaks down 7 telltale signs your employer might be stealing your wages, what the law says about it, and what you can do to protect your paycheck. Whether it’s unpaid overtime or missing tips, if you’re being shortchanged, you have rights—and Swartz Swidler is here to help.

What Is Wage Theft?

Wage theft happens when an employer fails to pay workers the full wages they are legally entitled to. It comes in many forms, and while some are blatant, others can be subtle or disguised as company policy.

Common Types of Wage Theft Include:

• Not paying for all hours worked
  
• Withholding overtime pay
  
• Misclassifying employees to avoid wage laws
  
• Taking tips or denying tip credit rights
  
• Paying less than the legal minimum wage

Wage theft is illegal under both federal law (Fair Labor Standards Act) and the New Jersey Wage and Hour Law.

Why Wage Theft Is Common in New Jersey

New Jersey’s workforce is diverse and hardworking—but unfortunately, some industries and employers exploit that.

High-Risk Industries for Wage Theft:

• Food service and hospitality
  
• Healthcare and home health aides
  
• Retail and warehouses
  
• Janitorial and cleaning services
  
• Construction and landscaping
  
• Gig and delivery work

Workers who are immigrants, younger, or paid in cash are particularly vulnerable, often fearing retaliation or unsure of their legal protections. But here’s the truth: everyone is protected by wage and hour laws, no matter your citizenship or employment status.

7 Signs Your Employer May Be Stealing Your Wages

1. You’re Not Paid for All Hours Worked

Did you have to clock out, then stay late to clean up? Or start working before your scheduled shift? If your pre-shift or post-shift duties go unpaid, that’s wage theft.

Example: A restaurant employee is asked to clock out before cleaning or closing. Those unpaid hours are illegal.

2. You’re Not Getting Overtime Pay

If you work more than 40 hours in a workweek, you’re generally entitled to time-and-a-half pay—even if you’re salaried or “on call.”

Example: A delivery driver works 50 hours but is paid straight time for all hours. The employer owes 10 hours of overtime at 1.5x the hourly rate.

3. You’re Misclassified as Exempt or a Contractor

Employers often misclassify employees to avoid paying overtime or benefits. If your job duties are non-exempt but you’re labeled “exempt” or “independent,” it could be illegal.

✅ Red flags:

• You’re paid a flat salary but do not manage others or make key decisions
  
• You follow a schedule, report to a manager, and don’t work independently

4. Your Tips Are Being Taken or Shared Improperly

Tip theft is especially common in restaurants and hospitality. Employers cannot take your tips or force you to pool tips with managers or back-of-house staff (e.g., cooks, dishwashers).

Example: A manager skimming from the tip jar violates the FLSA and NJ law.

5. You’re Paid Less Than Minimum Wage

As of 2025, New Jersey’s minimum wage is $15 per hour for most workers. If you’re being paid less—whether in cash, via an app, or under the table—that’s a violation.

Tipped workers must still receive enough in tips to reach $15/hour combined with the base wage. If not, the employer must make up the difference.

6. You’re Asked to Work “Off the Clock”

If your boss asks you to “just help out” before or after you punch in—or during unpaid breaks—you’re still legally on the clock.

Example: A warehouse worker is asked to help unload trucks before her shift begins but isn’t compensated. That’s wage theft.

7. You Don’t Receive Pay Stubs or Time Records

By law, you’re entitled to clear documentation of your hours and pay. If you never see a pay stub, or if records are altered or missing, that’s a red flag.

Example: A construction worker is paid in cash with no documentation. If overtime isn’t tracked or paid, it’s illegal.

 

What to Do If You Suspect Wage Theft

Step 1: Document Everything

• Keep your own time log of hours worked
  
• Save emails, texts, and schedules
  
• Take screenshots or photos of timecards

Step 2: Review Your Pay

Compare your records to your pay stubs. Look for:

• Missing hours
  
• No overtime
  
• Underreported wages

Step 3: Talk to HR or Your Supervisor

Sometimes it’s a mistake—but if they ignore or retaliate, move to Step 4.

Step 4: File a Complaint

You can file with:

• New Jersey Department of Labor
  
• U.S. Department of Labor (Wage & Hour Division)

Or…

Step 5: Contact a Wage Theft Lawyer

An experienced attorney can:

• Help you file a claim
  
• Recover back pay, penalties, and damages
  
• Protect you from retaliation

How Much Can You Recover?

• Back pay for all unpaid wages
  
• Liquidated damages (often double the amount owed)
  
• Interest and attorney’s fees
  
• Reinstatement or retaliation damages, if you were fired or punished for speaking up

Statute of Limitations in NJ: You can typically recover up to 6 years of unpaid wages.

When to Call a Lawyer

You should talk to a wage & hour attorney if:

• Your employer ignored your complaints
  
• You’ve been fired, demoted, or punished for raising concerns
  
• You’re part of a group experiencing the same issue (possible class action)
  
• You’re unsure if your classification or pay practices are legal

“Wage theft is more than a paycheck issue—it’s a justice issue. We help New Jersey workers recover what they’re owed and hold employers accountable.”
— Justin Swidler, Partner, Swartz Swidler LLC

FAQs: Wage Theft in New Jersey

• Can salaried employees experience wage theft?

  • Yes, if they’re misclassified and denied overtime.

• What if I’m undocumented?

  • You’re still protected by wage laws. Your immigration status does not affect your right to fair pay.

• What if I no longer work there?

  • You can still file a claim and recover stolen wages.

• Is there a minimum amount I need to be owed?

  • No. Even small claims are valid and often lead to larger investigations.

 

Additional Resources for NJ Workers

• NJ Department of Labor – Wage & Hour Division
  
• U.S. DOL – Wage and Hour Division
  
• Swartz Swidler – Wage & Hour Violations
  
• Contact Us for a Free Consultation

Conclusion: Don’t Let Wage Theft Go Unchallenged

You work hard—and every dollar counts. If your paycheck doesn’t match your hours, or your tips keep “disappearing,” it’s time to ask the hard question: Is your employer stealing your wages?

If the answer is yes—or even “maybe”—Swartz Swidler is here to help. We’ve recovered millions in unpaid wages for New Jersey workers and we’re ready to stand by your side.

📞 Call (856) 685-7420 or contact us online for a free, confidential consultation.