What is wage theft?

Wage theft occurs when employers deny workers the wages and benefits they are legally entitled to. This can take various forms, such as underpayment of minimum wage, failure to pay overtime, denying required breaks, and other practices that violate state and federal labor laws. Wage theft impacts workers' financial stability and is illegal under Colorado and federal law.

Examples of Wage Theft

Unpaid Minimum Wage

• Description: Colorado law requires employers to pay employees at least the state minimum wage for every hour worked. Wage theft occurs if employees are compensated below this minimum or for fewer hours than they actually worked.

• Examples: Paying employees a flat salary that results in hourly pay below the minimum wage, deducting expenses or requiring employees to purchase items (e.g., uniforms) that reduce take-home pay below minimum wage.

Unpaid Overtime

• Description: Employees in Colorado are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a week or 12 in a single day. Employers may commit wage theft by failing to pay overtime rates or by misclassifying employees as exempt from overtime.

• Examples: Paying straight time instead of time-and-a-half for overtime, requiring employees to work "off the clock" beyond their scheduled shifts without overtime compensation.

Missed Breaks

• Description: Colorado law requires a paid 10-minute rest period for every 4 hours of work. Denying these breaks or not compensating employees for them constitutes wage theft.

• Examples: Not allowing employees to take breaks during busy shifts, penalizing employees for taking breaks, or failing to schedule or pay for breaks as required.

Non-Compliant Meal Breaks

• Description: Employees must receive a 30-minute unpaid meal break after 5 consecutive hours of work, where they are relieved of duties. If employers require work during this period or fail to provide the break, they are engaging in wage theft.

• Examples: Requiring employees to work through lunch without compensation, or expecting employees to remain on call during meal breaks without paying them for this time.

Unauthorized Deductions

• Description: Any deductions from wages for uniforms, cash shortages, or damaged equipment that bring an employee’s pay below minimum wage are prohibited.

• Examples: Charging employees for customer theft or breakage, taking fees for company-required training, or deducting expenses for company-required tools.

Off-the-Clock Work

• Description: Employers may require employees to complete tasks before clocking in or after clocking out, which is wage theft if not compensated.

• Examples: Requiring employees to set up, clean up, or attend meetings off the clock.

Misclassification as Independent Contractor

• Description: Employers may classify workers as independent contractors rather than employees to avoid paying minimum wage, overtime, and other benefits.

• Examples: Misclassifying employees who perform core business functions or who are under significant employer control as independent contractors, resulting in underpayment and denial of benefits.

Failure to Pay for All Hours Worked

• Description: Employers must pay employees for all hours worked, including preliminary and postliminary tasks.

• Examples: Failing to compensate for time spent putting on and taking off uniforms or safety equipment, or other mandatory pre- and post-shift activities.

Colorado law protects workers from these and other types of wage theft, providing avenues for workers to seek redress, including filing complaints with the Colorado Department of Labor and Employment.