Wage theft is simple: an employer takes money that belongs to an employee. The schemes to do so, however, can be complex. Migliaccio & Rathod LLP’s wage theft attorneys in DC are experienced at seeing through smoke and mirrors to hold employers accountable when they break the law.

Practicing nationwide, M&R has recovered millions of dollars* in wage theft suits on behalf of clients. Please contact us for a free consultation if you believe you have been a victim of wage theft.

Some common wage theft schemes are below:

Unpaid Off the Clock Work.  Some employers may make employees work off the clock such as by doing work before a shift begins, after it ends, or during unpaid breaks.  Employers may also not pay not for certain work such as safety meetings, traveling to work sites, and other preparatory work. This is usually unlawful.

Regular Rate/Overtime Violations. According to the Fair Labor Standards Act (“FLSA”), regular rate must reflect all earnings, including bonuses and other extra pay. When no additional non-discretional earnings are involved, an employee’s overtime pay can be simply calculated as 1.5 times the hourly rate. However, per the FLSA, when employees earn non-discretional bonuses or other extra pay on top of their hourly pay, employers must calculate overtime payments (i.e., payment for hours worked over 40 in a workweek) as 1.5 times the “regular rate,” which includes these other forms of pay and is thereby higher than as would be calculated using the hourly pay rate. These types of bonus payments are common and include:

Site Allowance
Stage Bonus
Production bonus
Other guaranteed pay or non-discretionary bonuses

Tip Credit Violations.  The minimum wage for tipped employees is $2.13 and is higher in some states. For a business to pay a tipped employee a cash wage lower than the standard federal minimum wage of $7.15, several qualifications must be met. If an employer fails to meet just one of these requirements, the employee is entitled to the federal minimum wage, in addition to tips they might receive. Common violations include:

tip credit claimed by the employer exceeds the actual amount of tips received
tips are retained by the employer instead of the employee
the inclusion of non-tipped workers in a tip pool
paying an employee a tip wage when over 20 percent of his or her job involves tasks that do not normally receive tips.

Straight Time for Overtime. Unless specifically exempted, the FLSA requires employers to pay employees one and one-half times their hourly rate for each hour beyond 40 in a workweek. Paying workers a straight-time rate for overtime violates the law.

Misclassification. Federal law (and often state law) state that employees should be paid time and a half for hours worked over 40. There are some exceptions to paying overtime, including if an employee is an “executive.”  Some employers will claim this exemption by labeling an employee a “manager” and making him or her work long hours, even though the primary duties of the job are actually more similar to that of hourly employees. In such instances, the employee may be misclassified as exempt and therefore entitled to overtime pay at a rate of time and a half.

Improper Use of Independent Contractor Status. The FLSA’s minimum wage and overtime provisions only apply to employees. Independent contractors are not employees and therefore not subject to the benefits of the FLSA. Just because your employer calls you an “independent contractor,” though, does not make you one.

Half-Time or Fluctuating Work Week Violation. The general rule of thumb is that for every hour worked over 40 in a week, a worker should be paid time and a half (or 1.5) times his or her regular rate of pay, even if the worker earns a salary. Some employers, however, will pay employees a set weekly salary but just one-half (0.5) of their regular rate so that the workers actually make less for hours worked over 40. This can be a lawful exception to the general rule but only if some very strict criteria are met.

Selected Cases

Davis v. Giant of Maryland, LLC, Case No.1:25-cv-02282

United States District Court for the District of Columbia

Migliaccio & Rathod LLP has filed a collective action lawsuit against Giant over allegations that Giant failed to compensate DC employees for all hours worked, including by implementing unlawful rounding and additional time-shaving practices. Per the DC Wage Payment and Collection Law and the DC Minimum Wage Revision Act (“MWRA”), M&R alleges that employees are entitled to unpaid wages from Giant for all hours worked as required by law.

The complaint was filed in June 2025 in the Superior Court for the District of Columbia and was subsequently removed to the United States District Court for the District of Columbia in July 2025. As of March 2026, litigation is ongoing.

Babbit et al., v. Target Corporation, Case No. 0:20-cv-00490

United States District Court for the District of Minnesota

Migliaccio & Rathod LLP, along with co-counsel is involved in a collective action lawsuit against Target alleging that Target wrongfully misclassified Executive Team Leaders (“ETLs”). ETLs are paid only a little more than non-exempt employees yet they regularly work 50-60 hours per week. Target classifies all ETLs as exempt “executives” and does not pay them overtime. Per the FLSA, M&R alleges that ETLs are entitled to unpaid wages from Target for all overtime hours worked as required by law.

The complaint was filed in February 2020. As of March 2026, litigation is ongoing.