What You Need To Know About Wage Theft

Wage theft is the illegal withholding of wages or the denial of benefits that are rightfully owed to an employee. Wage theft can be found were an employer has failed to pay wages, overtime, minimum wage, or when they have misclassified an employee, made illegal deductions in pay, or required working off the clock or not paying an employee at all. Wage theft is illegal under Federal, State and Local law.Seattle’s wage theft ordinance provides specific protection to workers within the City limits.  Under Seattle Municipal Code section 14.20 it is also crime to withhold payment of wages and tips owed to employees.  Seattle requires employers to:

• Provide written notice to employees at time of hire or change of employment, containing the employer’s name, physical address and contact information, pay rate, pay basis, regular pay day and tip policies.
• Pay all wages and tips owed to employees on a regular pay day.
• Provide written notice to employees each time wages and tips are paid detailing employees’ gross wages and tips, rate of pay, pay basis and all deductions.
• Keep payroll records for no less than 3 years for employees covered under the ordinance.
• Provide written notice (e.g. poster) to employees that they are entitled to their rights under this ordinance.
• Provide notice in English, Spanish and other languages commonly spoken at a given work site. OLS will provide notice templates and a workplace poster in English, Spanish and other languages on this web site.

A charge can be made against an employer up to three years after an alleged violation. Remedies for violation of the ordinance include: Payment of wages and tips plus interest and penalties. An employer could even face revocation of their business license if they fail to remedy the matter as directed and could even face criminal charges.