It is no secret that companies seek to cut costs wherever possible – doing so is often an example of good business acumen. When corporate savings come at the detriment of hard-working employees, however, the practice is blatantly unacceptable.
One trend emerging in the corporate landscape is the act of granting employees inflated job titles as a way of withholding the payment they rightfully deserve. This behavior is an example of wage theft, but workers can protect themselves by understanding the signs of this wrongful practice and what to do if it occurs.
How can companies use fake titles to withhold payment?
One study into wage theft practices reveals that many companies grant salaried “manager” positions to certain employees whereas other workers might do the same job while remaining eligible for overtime pay. Despite having the same responsibilities and the same base pay, these employees with “executive” titles tend to receive up to 13% less pay than their counterparts. This is because of a lack of requirement to pay salaried employees the standard time-and-a-half wage for overtime hours.
What can workers do about wage theft via inflated titles?
Wage theft through inflated titles violates the spirit and good faith of the Fair Labor Standards Act. Workers who are victims of this deceptive style of wage theft have the right to take legal action and seek compensation. An attorney with experience in wage and hour law can navigate the complexities of FLSA to build a strong case.
Malicious business leaders will not hesitate to get creative in devising ways to exploit workers to save money. This is a practice that employees do not have to idly accept when options exist to pursue justice through legal action.