Wage & Hour Dispute Lawyer in Philadelphia

The Fair Labor Standards Act (FLSA) is the federal law that guarantees most employees minimum wages and overtime pay. Many states have similar laws, often with greater protections for employees. Unless exempt, an employee must generally receive at least $7.25 per hour worked (higher under many state laws) and time-and-a-half of their regular pay for hours worked over 40 in a workweek. These rules may seem simple but quickly become more complex when considering factors like independent contractor or exempt status, or whether the employer has properly paid for all hours worked at the correct overtime rate.

The attorneys at Goodley McCarthy LLC have recovered millions of dollars in unpaid wages for thousands of workers under federal, New York, New Jersey, Pennsylvania, and District of Columbia laws.

If you believe you may be owed unpaid wages or tips, contact our firm at (215) 273-3491 for a free consultation with a wage & hour dispute attorney near you.

Understanding Independent Contractor Misclassification

In recent years, many companies have misclassified workers as independent contractors rather than employees. Employers often adopt the independent contractor model to save on payroll taxes, wages, and benefits, even when such actions may violate the law. This issue is especially common in today’s gig economy. Even if a company requires a worker to sign an independent contractor agreement, that worker may still qualify as an employee under the law. The actual work relationship, not the agreement, determines employee status and entitlements like minimum wage and overtime.

Accurately classifying your employment status matters because it affects your access to important benefits and protections, such as health insurance, retirement plans, and workers' compensation. Misclassification can block employees from essential labor protections, creating unfair competition and undermining employee rights. Employers who violate labor classification laws face penalties and back taxes. Workers should confirm their employment status to protect their rights under wage and hour laws.

Salary Misclassification and Its Impact

Getting paid a salary does not automatically make an employee exempt from overtime for hours worked above 40 in a workweek.

To be exempt, the employee must:

• be paid on a salary basis (meaning they must receive at least $684 per week regardless of hours worked).
• have a primary duty that fits legal exemption categories.

Employers often claim exemptions under the “White Collar Exemptions,” covering executive, administrative, professional, and outside sales roles. Specific conditions must be met for any exemption to apply. If an employer fails to satisfy these legal requirements, the employee may be entitled to overtime pay. Many salaried employees—such as assistant store managers, construction workers, emergency responders, salespeople, and healthcare workers—have been misclassified as exempt when the law says otherwise.

Understanding these exemptions matters because misclassification can result in lost overtime pay for employees. Workers should check their job duties against those outlined in the exemptions. Legal guidance can help clarify pay entitlements. Staying up-to-date on labor law changes lets employees better protect their right to fair wages.

Wage & Hour Laws in Philadelphia

Philadelphia stands as a vibrant economic hub, bustling with industries such as healthcare, hospitality, and construction. This diversity makes following local wage and hour laws especially important. The city adopts regulations that complement federal laws, providing employees with additional rights. For example, Philadelphia has increased the minimum wage for city employees and contractors, showing a commitment to living wages. Employers operating in Philadelphia must adhere to local rules to avoid legal issues and ensure a fair work environment.

The Philadelphia Department of Labor provides essential resources and guidance for wage disputes. This includes educating employees about their rights and supporting grievance procedures for wage theft, unpaid overtime, and other violations. Employers and employees alike benefit from understanding these rules. For more details or guidance, local workers can contact trusted wage and hour lawyers in Philadelphia and leverage city resources.

Philadelphia's Wage Theft Ordinance gives workers a clear path for reporting violations and sets higher standards than those in some neighboring states. Employers citywide must follow these enhanced protections or risk penalties. If you work in Philadelphia and encounter pay issues, knowing your rights under city and state laws makes a real difference in resolving wage disputes. This ordinance keeps businesses accountable and supports employees seeking fair compensation in the region's busy job market.

What to Expect When Pursuing a Wage and Hour Claim in Philadelphia

When pursuing a wage and hour claim, the process begins by gathering records such as pay stubs, time sheets, or schedules that support your claim. Organized documentation helps to clarify the facts of your case. During an initial legal consultation, you’ll discuss your work duties, pay structure, and employer practices. Local laws, like Philadelphia’s Wage Theft Ordinance, may shape your options and the available remedies. Legal professionals can help determine whether federal, state, or city rules apply to your situation.

Philadelphia employers face requirements from city wage laws in addition to state and federal statutes, sometimes resulting in overlapping rules. Timing, documentation, and legal options may, therefore, vary depending on where the violation occurred or whether city policies expand employee protections. Some disputes resolve through negotiation, but others proceed before city agencies or in court. Consistent communication with your legal counsel helps you stay informed about the status of your claim. Choosing a law firm that values transparency and personalized support can make this process less intimidating. Connect with a skilled wage and hour attorney in Philadelphia from Goodley McCarthy LLC.

Improper Calculation of Overtime in Philadelphia

Employers sometimes miscalculate overtime pay for employees. This often happens when an employee receives a flat rate (such as a salary, piece rate, or day rate) and the employer fails to correctly determine the employee’s “regular rate of pay” for overtime calculations. The U.S. Department of Labor’s Wage and Hour Division has published rules on how to calculate regular rates. For example, a non-exempt employee paid daily and working more than 40 hours in a week must have their weekly pay divided by all hours worked to find the correct regular rate, which then serves as the basis for overtime pay. Many employers do not apply this rule correctly.

Employers who use the wrong approach to calculate overtime risk substantial legal and financial consequences. If you notice discrepancies between your hours worked and overtime pay, collect your time and pay records for review. Understanding the details involved in overtime calculations helps workers spot wage issues and decide when to consult a wage and hour attorney in Philadelphia for help.

Philadelphia workplace regulations build on federal requirements by urging prompt wage payments and strict recordkeeping from employers. Employees working overtime in major local industries—such as healthcare, construction, and hospitality—should track hours and pay carefully to ensure compliance and prevent disputes. The Philadelphia Department of Labor provides guidance and enforcement if overtime wage disagreements arise.

Off-the-Clock Work Issues and Solutions

At some jobs, employees work overtime, but employers do not track or pay for all of these hours. Examples include construction workers loading tools at a company yard before being on the clock or workers not being paid for donning and doffing personal protective equipment. Some employers deduct lunch breaks when employees still perform productive work, and federal law requires any break less than 20 minutes to be paid. All of these situations may result in claims for unpaid overtime.

Workers should track all their hours when they suspect they are working off the clock. Saving evidence, such as timesheets or written messages with supervisors, helps support potential wage theft claims. Legal advice plays an important role in recovering unpaid wages, so consulting with a wage and hour lawyer can be a key resource for affected workers.

Philadelphia's Department of Labor highlights city-specific rules about required paid breaks and recordkeeping. If a dispute arises, the city offers resources—including hotlines and complaint forms—so workers can report concerns and seek guidance. Employers in the Philadelphia region must follow city standards on wage transparency and may face civil penalties for repeated violations.

Restaurant & Service Workers in Philadelphia 

Under federal and state law, service workers—including waiters, bartenders, cocktail servers, bussers, and runners—must receive the applicable minimum wage for each hour worked and are entitled to overtime pay at time-and-a-half for all hours worked above 40 in a workweek.

Tipped Minimum Wage Guidelines

Restaurants are allowed by law to pay service workers a lower “tipped minimum wage” and take a “credit” for the tips workers earn, as long as tips bring total pay to or above the minimum wage. This applies each week and for every hour worked.

For example, in the District of Columbia, the minimum wage is $17.00 per hour, and the tipped minimum wage is $6.00 per hour. A restaurant can pay a worker $8.00 per hour if the worker earns at least $9.00 per hour in tips. If not, the employer must make up the difference.

In New Jersey, the tipped minimum wage is $5.26 per hour. Like D.C., New Jersey requires employers to ensure tips plus wages equal at least the state minimum.

Tip Credit & Compliance

Employers taking a tip credit must give workers written notice about pay rates, tip credits, and any tip-sharing policies. In D.C., employers must post tip-sharing policies and provide written notification to employees.

If employers fail to give these notices, employees may be owed significant unpaid wages and have the right to pursue legal claims.

Common Wage & Tip Violations in the Restaurant Industry

The following are common wage and tip violations in the restaurant industry:

• The restaurant or its managers keep part of a service worker’s tips, which is not allowed.
• The restaurant does not pay an hourly base wage to servers. No matter how much is made in tips, employers must pay the required tipped minimum wage for all hours. In New York City, the tipped minimum wage is $12.50 per hour.
• Tip-sharing rules force staff to share tips with workers who have no direct customer interaction, such as cooks or dishwashers, which is not legal.
• Employers pay the tipped minimum wage for all hours worked, even when hours are spent performing non-tipped work, such as cleaning. These hours must receive the full minimum wage.

Ways to Protect Your Rights Against Wage Theft

Wage theft still happens in regulated cities like Philadelphia, so employees must protect their interests. One effective way is to keep detailed records of hours worked, wages earned, overtime, and any inconsistencies. Strong documentation is persuasive evidence if a wage dispute develops.

Staying informed about your rights under state and federal law is another safeguard. You can use resources from the Philadelphia Department of Labor and workers' rights organizations offering education about wage laws. When you suspect a violation, consulting a wage and hour lawyer in Philadelphia can help you understand your next steps and ensure fair pay.

Philadelphia’s infrastructure for reporting and fighting wage theft is among the most robust in the state. The Wage Theft Ordinance gives workers clear procedures to report issues and recover owed wages. By learning about these resources and joining educational events, local workers build stronger protections for themselves and support fair labor in their community.

Goodley McCarthy LLC’s Approach: Advocating for Fair Wages with Local Insight

Goodley McCarthy LLC represents workers across the Mid-Atlantic, with a strong commitment to Philadelphia and the surrounding region. The firm’s founders have personal ties to the city, contributing to a deep understanding of local wage and hour challenges. The firm supports both individual workers and labor unions facing issues like misclassification and unpaid overtime, handling collective and individual claims with diligence. Goodley McCarthy LLC has recovered significant back wages and benefits, showing its dedication to holding employers accountable for wage law violations.

Local knowledge counts when interpreting Philadelphia’s Wage Theft Ordinance or applying Pennsylvania wage requirements. Goodley McCarthy LLC offers clear, direct communication throughout each case, so clients stay informed and have opportunities to ask questions. Through resources and education about workplace rights, the firm empowers clients to make informed choices about employment situations. Philadelphia workers in fields like healthcare, retail, construction, and hospitality benefit from proven strategies based on regional laws, giving them a fair advantage in today’s workplace. For experienced guidance in your matter, speak with a qualified wage and hour lawyer in Philadelphia as soon as possible.

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FAQ: Wage & Hour Disputes in Philadelphia

What is a wage and hour dispute?

A wage and hour dispute happens when there are disagreements or violations concerning how workers are paid. Common issues include overtime pay, misclassification, failure to pay the minimum wage, or making improper wage deductions.

What is the minimum wage in Pennsylvania?

As of 2024, Pennsylvania's minimum wage is $7.25 per hour, matching the federal standard. Some localities may have higher minimums, and certain jobs—such as those in hospitality—have additional rules for tipped wages.

Can I sue my employer for unpaid overtime?

If you are a non-exempt employee and did not receive appropriate overtime, you may be able to pursue legal action against your employer to recover unpaid wages, liquidated damages, and interest.

How do I know if I’m exempt from overtime?

Overtime exemption depends on your job duties and pay. Employees with executive, administrative, professional, and outside sales positions may be exempt, but those misclassified may still qualify for overtime pay.

What is the statute of limitations for filing a wage claim in Pennsylvania?

Under the Fair Labor Standards Act (FLSA), you have two years from the violation to file a wage claim. For willful violations, this period may extend to three years.

Can I be retaliated against for filing a wage and hour claim?

The law prohibits employers from retaliating against workers who assert their wage and hour rights. Retaliation includes firing, demoting, or taking adverse actions due to a complaint or claim.

Can I recover my attorney’s fees in a wage dispute?

If you succeed in a wage and hour dispute, the law may entitle you to collect attorney’s fees and court costs in addition to your owed wages and damages.

How does serving in the gig economy affect my wages?

Gig economy work—such as freelance or contract jobs—can make wage protections unclear. Workers often face challenges with correct classification, which affects pay and access to wage protections. Understanding your legal status and pay rights is essential in these roles.

Local resources are available to help clarify gig work classifications. Speaking to a wage and hour lawyer in Philadelphia is often beneficial in these situations. Recognizing patterns in pay and work conditions lets gig workers protect their earnings.

Are there specific protections for Philadelphia workers?

Yes. Philadelphia has adopted additional protections—like the Wage Theft Ordinance—to ensure workers earn fair wages. This ordinance puts in place clear reporting and compliance obligations for employers.

Learning about local ordinances and using resources like the Philadelphia Workers' Compensation Library empowers employees to understand their rights and pursue what they are owed under the law.

Get the support you need from our skilled wage and hour lawyer. Reach out at (215) 273-3491 now to book your initial consultation.