Dearborn Unpaid Wages and Overtime Lawyer

Dearborn serves as the worksite for nearly 37,000 Michigan workers. Every day, tens of thousands of employees in manufacturing, healthcare, retail, and other industries work to serve their communities and drive businesses toward their goals.

No matter their experience, industry, skill level, or schedule, all Dearborn employees have one thing in common: They deserve to be paid in full for the time they work. But what employees deserve and what they receive don’t always line up.

Without fail, some Dearborn workers will discover they aren’t receiving the full pay they have earned. In certain cases, unpaid wages and overtime result from an employer’s good-faith mistakes. Other times, however, failing to pay is deliberate. When employers take advantage of employees in this way, they are likely violating state or federal law.

If you suspect you’re not receiving full payment for the work performed, don’t wait. Talk to an experienced unpaid wages attorney today. The team at Sommers Schwartz P.C. is here to help Dearborn workers pursue their unpaid wage and overtime claims.

Michigan Wage and Overtime Laws Summarized

Both Michigan state law and federal law dictate what employers may and may not do when paying their workers an hourly wage, a salary, or overtime pay.

The Michigan Workforce Opportunity Wage Act sets rules for paying wages and overtime in the state. For instance, it requires that non-exempt employees who work more than 40 hours in a workweek receive 1.5 times their typical hourly rate for the time they work beyond 40 hours.

The Act creates specific rules for certain workers, including firefighters, police officers, and corrections facility officers. It doesn’t exempt the employers of these workers from paying overtime. Instead, it sets specific rules that vary slightly from the general rule that employees must be paid 1.5 times their usual rate for time worked beyond 40 hours per week.

For employees who receive an hourly wage, calculating overtime is often simply a matter of multiplying their usual hourly rate by 1.5, then multiplying the number of hours they worked over 40 by that higher rate. For example, an employee paid a regular rate of $30 per hour receives an overtime rate of $45 per hour. If that employee works 50 hours in a week, they should be paid for the first 40 hours at $30 per hour and the last 10 hours at $45 per hour.

Sadly, employers find myriad ways to skirt overtime rules. Common tactics include:

• Placing workers on salary, then telling workers they are exempt from overtime rules because they receive a salary.
• Telling workers to clock out at the end of their 40 hours, then asking them to finish certain tasks after they clocked out.
• Paying workers their regular rate for all hours worked, even if they work more than 40 hours.

Workers paid an hourly rate are entitled to overtime pay, regardless of how much they make. Those who are paid a salary, however, may be “exempt” from overtime rules or “non-exempt.” Non-exempt employees must also be paid overtime.

Some employers wrongly assume that all salaried employees are exempt from overtime rules. Other employers know that certain salaried employees are entitled to overtime pay, yet they fail to provide this benefit to their salaried employees.

Another way employers seek to avoid paying overtime is to require employees to clock out before they finish working for the day. If your employer tells you to clock out before you clean your workspace, for example, they may be in violation of the law. Employers may also provide unpaid mealtimes, yet expect employees to work during breaks. Both examples are prohibited under Michigan and federal law.

Federal Wage and Hour Rules

At the federal level, wage, hour, and overtime rules are included in the Fair Labor Standards Act (FLSA). The FLSA applies to most employees in the United States. Generally speaking, states may offer more protections to workers than the FLSA offers, but they may not take away protections included in the FLSA.

Michigan’s wage and overtime laws parallel the FLSA in some ways. For instance, both state and federal law require employers to pay overtime rates of at least 1.5 times the employee’s regular pay rate. However, the two laws differ slightly in how they determine which employers must follow these rules.

Michigan’s Workforce Opportunity Wage Act requires all employers to follow its wage and overtime rules if the employer has more than two employees. The rules apply no matter how much money the business makes (or loses) in any one year. By contrast, the Fair Labor Standards Act doesn’t look at how many employees a business has. Rather, the FLSA applies whenever a business has a gross income of more than $500,000.

Another way state and federal wage laws differ is in the required minimum wage. The federal minimum wage is currently $7.25 per hour, a rate that has not changed since 2009. In Michigan, however, the minimum wage adjusts upward each year in response to inflation rates. Michigan’s minimum wage rose to $10.10 per hour in 2023. The minimum wage is another example of how states may give more generous protections to employees than the FLSA provides, but states may not take away protections the FLSA offers.

Worker Misclassification May Lead to Unpaid Wages or Overtime

As gig work and outsourcing have become more common, so have cases in which a worker that should be classified as an employee is instead classified as an independent contractor. Misclassification can result in workers losing the pay they should receive.

Generally, an employee works for one employer. An independent contractor is a separate business selling its services to the employer. Employers have several responsibilities to employees that they do not have to independent contractors – like the responsibility to track an employee’s time accurately and to pay wages and overtime correctly.

Determining whether a worker is an employee or an independent contractor can be challenging. Some employers take advantage of this difficulty to tell workers they’re independent contractors when the worker is more likely an employee.

When considering whether a worker is an employee or an independent contractor, the Internal Revenue Service (IRS) examines several factors, including:

• Behavioral control. Does the employer control or direct how the work is done? Or are workers free to determine how work is completed as long as they meet agreed-upon deadlines?
• Financial relationships. Workers that invest in their tools and gear, make their services available to several clients, and have the opportunity to earn profit or loss are more likely to be classified as independent contractors. How an employer pays a worker can also affect how the financial relationship is viewed.
• Work relationships. Factors that affect classification in this area include the business agreements or arrangements between the worker and employer, such as the existence of a contract for independent contractors.

If you suspect you’ve been classified incorrectly, talk to an experienced attorney as soon as possible.

Why You Should Work With an Experienced Dearborn Wage-and-Hour Attorney

Michigan and federal wage and overtime laws protect employees from employers who try to deprive their staff of wages or overtime they have rightfully earned. Yet many Michigan workers hesitate to bring a claim – or even to ask politely whether their employer may have made a mistake.

Challenging your employer can be daunting. You may fear your employer will retaliate by cutting your hours, docking your pay, or firing you outright.

Michigan and federal law make it illegal for an employer to retaliate against an employee seeking their full pay under wage and overtime laws. An employer cannot take negative action against you if you ask for your full pay, talk to an attorney, or file a state or federal claim. If retaliation occurs, you can bring a claim for the retaliation in addition to your claim for unpaid wages and overtime.

If you suspect you have a claim, it is important to speak to an experienced Dearborn unpaid wage and overtime lawyer as soon as possible. Michigan law gives you only three years from the date you earned the unpaid wage or overtime to recover that money. Under the FLSA, you have only two years unless you can demonstrate that your employer withheld your money intentionally.

Contact an Experienced Dearborn Wage-and-Hour Attorney Today

At Sommers Schwartz P.C., we understand how tough it can be to take on your employer. That’s why your conversations with our office are always confidential. It’s also why we’re dedicated to fighting for each of our clients. We’ll answer your questions and help you decide what steps to take next.

Dearborn workers deserve every dime of the wages and overtime they have worked so hard to earn. If you suspect you’re not being paid fully, contact the Dearborn employment law attorneys at Sommers Schwartz P.C. Reach out to us today to schedule a free and confidential consultation with one of our unpaid wage and overtime lawyers.