Wage theft affects thousands of workers across Texas every year. It can happen in many ways, from not paying workers for hours they worked to denying overtime pay. In some cases, wage theft is not just a workplace dispute. Texas law allows certain cases to be treated as criminal offenses.
If you live in Dallas or anywhere in Texas, it is important to understand how wage theft happens, the laws that apply, and what you can do if you are accused or a victim.
What Is Wage Theft?
Wage theft happens when an employer does not pay a worker the full amount they have earned. It can occur in different forms, including:
- Not paying for completed work
- Failing to pay the minimum wage
- Withholding overtime pay
- Not paying for required breaks
- Asking employees to work off the clock
These actions violate Texas labor laws. They can also lead to both civil and criminal consequences depending on the situation.
Is Wage Theft Criminal in Texas?
For many years, wage theft cases were handled only in civil court. That changed in 2011 when Texas passed a law allowing prosecutors to file criminal charges for wage theft. This law was created after reports of widespread nonpayment, especially in the construction industry.
Under this law, employers can face criminal charges if they intentionally avoid paying workers. This includes refusing to pay after promising payment or accepting work without following through on wages owed. In some situations, an investigation into wage theft can lead to more serious charges like payroll fraud, tax fraud, or human trafficking if there is evidence of forced labor.
How Common Is Wage Theft?
Wage theft is more common than many realize. Texas has around 13 million workers, and surveys show that more than one in five construction workers have experienced wage theft during their careers.
Over a five-year period, the Texas Workforce Commission (TWC) ordered employers to pay more than $49 million in unpaid wages. However, more than $26 million of that amount remains unpaid.
In 2020, victims of wage theft were owed an average of $2,100 each. This loss of income often causes serious problems for workers and their families. Seven in ten workers who experienced wage theft reported economic hardship, such as falling behind on bills, struggling to pay rent or utilities, or not being able to afford medical care.
The Impact Beyond Workers
The effects of wage theft do not stop with the employees who are unpaid. State and local governments also lose tax revenue. In 2013 alone, Texas municipalities lost an estimated $8.8 million in tax revenue due to wage theft.
It also creates an unfair market for honest businesses. Employers who follow the law are often underbid by 15 to 25 percent by those who commit payroll fraud, avoid providing workers’ compensation insurance, or skip other employment benefits.
How the Texas Workforce Commission Handles Claims
The TWC’s Labor Law Department is responsible for investigating wage theft claims. While the agency recovers millions in unpaid wages each year, its ability to enforce the law is limited.
Funding for the department has declined in recent years, and the number of investigators has dropped as well. In 2010, there were 27 investigator positions budgeted. By 2018, that number fell to 21. The actual number of investigators working also declined from 22 in 2012 to just 16 in 2018, with a quarter of positions left unfilled.
This lack of staffing and resources makes it harder for the TWC to investigate all complaints fully and quickly.
Retaliation Against Workers
Many workers fear speaking out about wage theft because of retaliation. In surveys, one in three construction workers who filed wage theft claims reported that their employer retaliated. Retaliation can include firing the worker or threatening to call immigration authorities.
Retaliation is illegal, but it still happens. These threats can make it even harder for employees to report violations or recover the pay they are owed.
What To Do if You Are Accused or Facing an Investigation
If you are an employer accused of wage theft, you may be facing more than a civil dispute. Criminal charges are possible, especially if prosecutors believe there was intent to avoid paying wages.
Investigations can also expand into other areas, which can increase the risk of severe penalties. Speaking with a criminal defense lawyer early can help protect your rights and prepare you for any questioning or legal action.
Protecting Your Rights
Whether you are a worker trying to recover wages or an employer facing an investigation, wage theft cases in Texas can be complex. There are deadlines for filing claims, rules for how evidence must be handled, and legal consequences that can affect your future.
The sooner you take steps to understand your rights and obligations, the better you can respond.
Seek Legal Guidance With Gallian Firm
If you are in Dallas or anywhere in Texas and have questions about wage theft laws or an ongoing investigation, you should get legal guidance immediately. An experienced defense attorney can review your situation, explain your options, and help you take the right steps to protect yourself. Call (214) 432-8860 today to schedule a consultation.