Wage theft is pervasive in the construction industry, especially in subcontracting-intensive sectors where oversight is often limited. These practices—ranging from unpaid overtime to withheld wages—impact thousands of workers, many of whom fear retaliation for reporting such abuses.
In a recent California case, a construction subcontractor was ordered to pay nearly $500,000 in back wages and damages after federal investigators uncovered numerous violations of minimum wage and overtime laws. Found in violation of the Fair Labor Standards Act, the company was also mandated to reinstate a worker who was wrongfully terminated for raising concerns about their compensation.
Fair Labor Standards Act
It is important to know the law in order to protect your rights as a worker, whether you are in construction or another induestry. The FLSA (Fair Labor Standards Act) is the main federal law setting standards for minimum wage, overtime, and related wage issues for most employees in the U.S.
Minimum Wage at a Glance
- Covered non-exempt workers must receive at least $7.25 per hour
- Tipped employees: Employers can pay a lower cash wage (e.g., $2.13 federally), but tips must bring the total to at least $7.25. If not, the employer must make up the difference
- States can set higher rates; employers must pay the higher of federal or state minimum
- Special lower rates may apply in limited cases (e.g., certain students, workers with disabilities, or new hires under 20 for a short period)
Overtime Pay
- Non-exempt employees must receive 1.5 times their regular rate for all hours worked over 40 in a workweek
- The “regular rate” includes base pay plus certain other compensation such as shift differentials
- Exempt employees (“white collar” executive, administrative, professional roles meeting specific salary and duties tests) are generally not entitled to overtime.
Wage theft generally refers to employers failing to pay what is legally owed under FLSA or state law. Common examples include:
Paying below minimum wage.
Not paying required overtime (or misclassification of employees as exempt).
Failing to pay for all hours worked (e.g., off-the-clock work, uncompensated “on duty” meal periods).
Improper deductions.\
Tip theft or not making up shortfalls for tipped workers.
FSLA violations can result in lawsuits seeking back wages, damages (often double.
What is Wage Theft?
Wage theft generally refers to employers failing to pay what is legally owed under FLSA or state law. Common examples include:
- Paying below minimum wage
- Not paying required overtime (or misclassifying employees as exempt)
- Failing to pay for all hours worked (e.g., off-the-clock work, uncompensated “on duty” meal periods).
- Improper deductions
- Tip theft or not making up shortfalls for tipped workers
FSLA violations can result in lawsuits seeking back wages, damages (often double the amount owed), and fines. It is important to work with an experienced FLSA attorney to seek compensation if you have been a victim of wage theft.
Wisconsin Follows and Supplements FLSA
Minimum Wage in Wisconsin matches the federal $7.25/hour for most adults and minors (as of 2026). Tipped employees: $2.33 cash wage (employer must make up to $7.25). Overtime follows federal law requiring 1.5 times regular rate for hours over 40 in a workweek for covered employees in many industries. Victims of wage theft can file claims with the Wisconsin Department of Workforce Development (DWD) for unpaid wages, overtime, etc., often with potential penalties up to 50–100% additional.
Consult with a Wisconsin Wage Theft Attorney
Construction industry employee wages are protected by federal and Wisconsin state law. When you have experienced wage theft—including denied overtime or unpaid work—contact the law office of Alan C. Olson & Associates. Our FLSA attorneys will evaluate your situation and pursue the legal remedies and the just compensation you deserve.
