When your employer is not paying what was promised, federal law lets you recover the shortfall, and in many cases collect double the amount plus your attorney’s fees. The route is the same whether the missing money is wages, overtime, a promised bonus, or accrued PTO: document what you’re owed, send a written demand, and if that doesn’t produce a check, file a complaint with a labor agency or sue. Move quickly. Most federal wage claims die two years after the paycheck was due.
What Counts as Promised Pay
“Wages” is broader than your base rate. Federal law recognizes hourly pay, salary, commissions, piece rates, and any combination of these, as long as minimum wage and overtime rules are met.1eCFR. Part 778 Overtime Compensation If any of it goes unpaid, you have a claim.
Overtime is one of the most common shortfalls. A non-exempt employee who works more than 40 hours in a single workweek is owed at least one and a half times their regular rate for the extra hours.2Office of the Law Revision Counsel. 29 US Code 207 – Maximum Hours Employers sometimes try to avoid this by labeling workers “exempt” or calling them independent contractors. The label doesn’t control; your actual duties do.
Commissions and non-discretionary bonuses are also enforceable. A bonus tied to a formula, a sales target, or a promise made when you were hired is not discretionary and is legally owed. The only bonuses an employer can withhold are truly discretionary ones, where both the decision to pay and the amount are left entirely to the employer’s judgment with no prior agreement or expectation.1eCFR. Part 778 Overtime Compensation An offer letter that says “10% bonus upon hitting quarterly targets” is not discretionary.
Vacation and PTO sit on a boundary worth naming. Federal law does not require paid vacation or sick leave; these are a matter of agreement between you and your employer.3U.S. Department of Labor. Vacation Leave But once your employer establishes a policy, most states treat accrued time off as earned wages. If you leave with unused PTO and the policy or state law calls for a payout, your employer can’t keep it.
Proving the Promise Exists
To recover, the promise has to be more than a passing remark. A written document is the strongest ground: an employment contract, a signed offer letter, or a company policy that spells out compensation terms. The more specific the document is about amounts, timing, and conditions, the harder it is for your employer to argue the pay was never owed.
Verbal promises are harder but not worthless. Courts will enforce an oral promise, particularly when you relied on it to your detriment. Turning down another job, relocating, or taking on new responsibilities based on a verbal commitment all strengthen your position. The challenge is proving the conversation happened, which is why corroborating evidence matters so much.
Evidence to Pull Together Now
Before you take any formal step, build your file. The strength of a wage claim almost always comes down to documentation, and most people already have more of it than they realize.
- Pay stubs and bank records showing exactly what you were paid and when. Gaps between what was promised and what hit your account are the core of the claim.
- The original employment contract or offer letter setting out your compensation terms. If your employer later changed the deal, the original makes that clear.
- The employee handbook and any written policies on bonuses, commissions, PTO payouts, and overtime. These often create enforceable obligations even without a signed contract.
- Emails, texts, and messages in which the promised pay was discussed, confirmed, or referenced. Forward these to a personal email account so you have copies outside company systems.
- A written log of verbal conversations, noting the date, time, who was present, and what was said. Write these down as close to the conversation as possible. A contemporaneous note carries far more weight than a memory recalled months later.
Send a Written Demand First
Your first formal move is a demand letter to your employer. Address it to your direct manager or HR, and keep the tone professional. The letter serves two purposes: it gives your employer a final chance to pay, and it creates a paper trail showing you tried to resolve the matter before escalating.
State the exact dollar amount owed, explain how you calculated it, and reference the supporting documents. Set a firm deadline, typically 10 to 14 business days. Close by saying you intend to file a formal complaint if payment isn’t made by that date. Send it by certified mail or by email with a read receipt so you have proof of delivery. A surprising number of disputes end here, because employers know what comes next costs them significantly more.
File a Wage Complaint
If the demand letter doesn’t produce a check, you have two main paths: your state labor agency or the federal Wage and Hour Division. You can often pursue both.
Federal Complaints Through the Wage and Hour Division
The U.S. Department of Labor’s Wage and Hour Division handles complaints involving federal wage laws, including minimum wage and overtime violations. You can start by calling 1-866-487-9243 or contacting the agency online, and the WHD will work with you to decide whether an investigation is appropriate. Your identity as the complainant stays confidential throughout.4U.S. Department of Labor. How to File a Complaint
State Labor Agency Claims
Every state has its own labor department or wage enforcement agency, and many handle claims federal law doesn’t cover, like disputes over commissions, final paycheck timing, or PTO payouts. You can typically file online, by mail, or in person through your state agency’s website. After filing, the agency notifies your employer and runs its own investigation, which usually involves reviewing documents from both sides and may include a settlement conference.
Suing to Recover Unpaid Wages
You don’t have to rely on a government agency. Federal law gives you the right to file a private lawsuit against your employer in any federal or state court to recover unpaid minimum wages or overtime compensation.5Office of the Law Revision Counsel. 29 US Code 216 – Penalties This route makes sense when the amount is substantial, when the agency is moving slowly, or when you want to pursue liquidated damages.
For smaller claims, many workers use small claims court. Dollar limits vary by state, but most allow claims somewhere between $8,000 and $25,000. Filing fees are low, hearings are scheduled within a few weeks, and you don’t need a lawyer. The trade-off is that you’re capped at the state’s dollar limit and can’t pursue some of the remedies available in a full lawsuit.
One feature of a federal wage lawsuit is especially useful: if you win, your employer must pay your attorney’s fees and court costs on top of the judgment. The statute uses “shall,” leaving the court no discretion.5Office of the Law Revision Counsel. 29 US Code 216 – Penalties That makes it much easier to find a lawyer to take your case, because a winning outcome forces the employer to fund your representation.
You May Be Able to Collect Double
Recovering the unpaid wages is just the starting point. Federal law entitles you to an additional amount equal to the unpaid wages as liquidated damages, effectively doubling your recovery. The statute provides for back wages “and an equal amount as liquidated damages.”6U.S. Department of Labor. Back Pay If your employer shorted you $5,000, you could collect $10,000, plus attorney’s fees.
An employer’s only escape is proving the violation was committed in good faith and with reasonable grounds for believing the conduct was legal.7Office of the Law Revision Counsel. 29 US Code 260 – Liquidated Damages In practice, that defense is hard to win. An employer who had a compensation agreement, knew what it said, and simply didn’t pay is not going to convince a judge they acted in good faith.
Beyond what you personally recover, the Department of Labor can also assess civil monetary penalties for repeated or willful violations, running up to $2,515 per violation as of 2025, adjusted annually for inflation.8eCFR. Part 578 Tip Retention, Minimum Wage, and Overtime Violations – Civil Money Penalties Those penalties go to the government, not to you, but they add pressure on employers to settle.
Your Employer Cannot Fire You for Complaining
This is where many workers freeze. You know you’re owed money, but you’re afraid filing a complaint will cost you your job. Federal law addresses that directly. It is illegal for any employer to fire, demote, cut hours, or otherwise punish an employee for filing a wage complaint, cooperating with an investigation, or testifying in a wage proceeding.9Office of the Law Revision Counsel. 29 US Code 215 – Prohibited Acts
The protection is broad. It covers complaints made orally or in writing. Most courts have held that it covers internal complaints to your own employer, not just formal government filings. It even reaches retaliation by a former employer, like a bad reference given because you filed a claim after leaving.10U.S. Department of Labor. Prohibiting Retaliation Under the Fair Labor Standards Act
If your employer does retaliate, you have a separate claim. Remedies include reinstatement, lost wages from the period you were wrongfully fired or punished, and an additional equal amount as liquidated damages on top of those lost wages.5Office of the Law Revision Counsel. 29 US Code 216 – Penalties An employer who fires you for complaining ends up owing more than if they had simply paid you in the first place.
The Deadline That Ends Your Claim
None of these rights matter if you wait too long. Under federal law, you have two years from the date the wages should have been paid to file a lawsuit or complaint. If the violation was willful, meaning your employer knew they were breaking the law or showed reckless disregard for it, the deadline extends to three years.11Office of the Law Revision Counsel. 29 US Code 255 – Statute of Limitations
The deadline applies to each paycheck individually. If your employer has been shortchanging you for 18 months, you can still recover the most recent payments, but the oldest ones start falling off as each one crosses the two-year mark. State deadlines vary and can be shorter or longer than the federal window, so check your state’s rules early. The simplest way to protect yourself is to start the process as soon as you realize something is wrong. A demand letter costs nothing to send and puts your employer on notice while you decide on next steps.
If the Missing Pay Is Your Final Paycheck
If the unpaid wages are tied to leaving a job, whether you quit or were fired, states set specific deadlines for when your final paycheck must arrive. These range from immediate payment on the day of termination to the next regularly scheduled payday, depending on the state and how the employment ended. Many states impose daily penalties on employers who miss the deadline, calculated as your daily rate of pay for each day the check is late, up to a set cap. If your employer is dragging their feet on a last paycheck, contact your state labor agency. This is one of the most straightforward violations to prove and enforce.