Wage & Hour Dispute Lawyer in Philadelphia

Millions Recovered for Thousands of Workers Across the Mid-Atlantic

When employers fail to pay what the law requires, the consequences are real: missed rent, unpaid bills, and years of underpayment that compound quietly. At Goodley McCarthy LLC, we represent workers exclusively on the employee side of wage and hour disputes, handling both individual claims and large-scale collective actions under federal, Pennsylvania, New York, New Jersey, and District of Columbia laws. Our attorneys have recovered millions of dollars in unpaid wages for thousands of workers, and that track record shapes how we approach every case from intake to resolution.

The Fair Labor Standards Act (FLSA) sets a federal minimum wage of $7.25 per hour for most employees and overtime pay at 1.5 times the regular rate for hours over 40 in a workweek. These rules become legally complex fast, especially when independent contractor status, exemption classifications, or multi-rate pay structures enter the picture. Founders James E. Goodley and Ryan P. McCarthy built this practice in the Mid-Atlantic region they know well, and our firm is focused entirely on helping Philadelphia workers pursue the pay they may be owed.

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.

Wage Violations We Handle

Wage theft takes many forms, and employers often count on workers not recognizing when they’re being underpaid. The violations below are among the most common we see.

Independent Contractor Misclassification

Many companies classify workers as independent contractors to avoid payroll taxes, overtime, and benefits, even when the actual work relationship is that of an employee. This practice is widespread in the gig economy. Signing an independent contractor agreement doesn’t settle the question: under federal and state law, the real nature of the working relationship determines status, not the label on a contract. Workers misclassified as contractors may be owed minimum wages, overtime, and other benefits they’ve been denied.

Salary & Overtime Exemption Misclassification

A salary alone doesn’t exempt an employee from overtime. Federal law requires both a salary of at least $684 per week and a primary duty that qualifies under a recognized exemption category. The white-collar exemptions covering executive, administrative, professional, and outside sales roles each carry specific duty requirements. Assistant managers, construction supervisors, healthcare workers, and emergency responders are frequently misclassified as exempt when their actual job duties don’t qualify. When an employer fails to meet the legal requirements for an exemption, the employee may be entitled to overtime for each week the misclassification occurred.

Improper Overtime Calculation

Even when employers pay overtime, they don’t always calculate it correctly. When employees receive piece rates, day rates, or flat salaries, the employer must divide total weekly pay by all hours worked to find the correct regular rate before applying the 1.5 multiplier. The U.S. Department of Labor’s Wage and Hour Division has published guidance on this calculation, and many employers don’t follow it. If you’re paid on a non-hourly basis and work more than 40 hours in any week, your overtime figures are worth a close look.

Off-the-Clock Work

Some employers don’t compensate workers for time spent before or after a shift. Examples include construction workers loading tools at a company yard, employees donning and doffing personal protective equipment, or workers completing tasks during meal breaks. Under federal law, any break of 20 minutes or less must be paid. These unpaid minutes accumulate, and the resulting claims can be significant. If you’re regularly performing work outside your scheduled hours without pay, that may be a compensable violation.

Workers who prevail in wage claims may be entitled to back pay, liquidated damages equal to the unpaid wages, attorney fees, and court costs under the FLSA.

Philadelphia Wage Law: City, State, & Federal Protections

Philadelphia’s Wage Theft Ordinance (Chapter 9-4300 of the Philadelphia Code) defines wage theft as a violation of Pennsylvania wage law or any federal or state wage law where work was performed in Philadelphia or the employment contract was made here. Enforcement sits with the Office of Worker Protections within the Philadelphia Department of Labor, which handles complaints and may impose penalties on employers who fail to comply.

At the state level, the Pennsylvania Wage Payment and Collection Law (WPCL), 43 Pa. C.S. §260.1, gives employees a direct legal remedy when an employer fails to pay earned wages, commissions, bonuses, or fringe benefits. Under WPCL §260.10, if wages remain unpaid 30 days past the due date, the employee may recover liquidated damages of 25% of total wages owed or $500, whichever is greater. The WPCL’s statute of limitations is generally 3 years, and WPCL rights can’t be waived by contract. A severance agreement that purports to release earned wages is generally void as to those wages. Corporate officers with policy-making authority can also be held individually liable.

For a Philadelphia worker, these three layers of protection (city, state, and federal) often apply simultaneously. An attorney can identify which combination may produce the best available recovery for your specific situation.

What to Expect When Pursuing a Wage Claim

The process starts with documentation. Pay stubs, timesheets, schedules, and any written communications about hours or wages form the foundation of a wage claim. The more organized those records are, the clearer the facts become during an initial consultation.

Depending on the violation, a Philadelphia worker may file a complaint with the Office of Worker Protections, the PA Bureau of Labor Law Compliance, or the U.S. Department of Labor Wage and Hour Division, or pursue a private lawsuit. Some disputes resolve through negotiation with the employer. Others proceed before city agencies or in federal or state court. Timing matters throughout: statutes of limitations under the FLSA generally run 2 years for non-willful violations and up to 3 years for willful ones, while the WPCL provides a 3-year window. Delays can shrink the back pay period that’s recoverable, so earlier consultation may preserve more of what you may be owed.

We handle disputes through negotiation, agency proceedings, and court litigation, and we maintain clear, direct communication at every stage so clients can make confident decisions. Philadelphia employers face requirements from city wage laws in addition to state and federal statutes, and navigating that overlap is exactly where having an experienced attorney can make a difference.

Restaurant & Service Workers in Philadelphia

Under federal and state law, service workers, including waiters, bartenders, cocktail servers, bussers, and runners, may be entitled to the applicable minimum wage for each hour worked and overtime pay at time-and-a-half for hours above 40 in a workweek, depending on the circumstances.

Tipped Minimum Wage Rules

Restaurants may pay service workers a lower “tipped minimum wage” and take a credit for tips earned, as long as total pay reaches at least the minimum wage. This applies each week and for every hour worked. Pennsylvania’s tipped minimum wage is $2.83 per hour; employers must ensure that wages plus tips equal at least $7.25 per hour, and if tips fall short, the employer must make up the difference. In the District of Columbia, the minimum wage is $17.95 per hour with a tipped minimum of $10.00 per hour. In New Jersey, the tipped minimum wage is $6.05 per hour.

Under Pennsylvania’s revised tipped-employee regulations, employers must give written notice of a tip credit claim before taking it. Failure to provide that notice may forfeit the entire tip credit, meaning the employer may owe the full minimum wage for each affected hour. In D.C., employers must also post tip-sharing policies and provide written notification to employees. When employers skip these requirements, workers may be owed significant unpaid wages and may 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 generally 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, tipped food service workers must receive a cash wage of at least $11.35 per hour, while tipped service employees must receive at least $14.15 per hour.
• Tip-sharing arrangements that require staff to share tips with workers who have no direct customer interaction, such as cooks or dishwashers, may violate federal and state law, particularly where a tip credit is taken.
• Employers pay the tipped minimum wage for all hours worked, even when those hours involve non-tipped duties such as cleaning. Hours spent on non-tipped work may need to be compensated at the full minimum wage.

Why Philadelphia Workers Choose Goodley McCarthy LLC

We represent employees exclusively. That focus means our strategies, our knowledge of how Philadelphia wage law intersects with federal and state law, and our track record in collective and individual claims all point in one direction: helping workers pursue unpaid compensation. We’ve recovered millions of dollars in back wages and benefits for workers across the Mid-Atlantic, and we handle collective and individual claims with the same commitment to results.

Our relationships with labor unions extend our reach further. We work with unions to pursue wage claims and uphold labor standards collectively, and those relationships help us identify broad patterns of violations that affect not just one worker but an entire workforce. When a case warrants collective action, we have the experience to pursue it. When an individual claim is the right path, we pursue that with equal care.

Both founding partners have personal ties to the Philadelphia area and the broader Mid-Atlantic region. That grounding matters when interpreting the Philadelphia Wage Theft Ordinance, engaging with the Office of Worker Protections, or navigating the PA Bureau of Labor Law Compliance. Workers in healthcare, construction, retail, and hospitality across Pennsylvania, New York, New Jersey, Virginia, Maryland, and the Washington D.C. metro area come to us because we understand the legal landscape they work in. Under the FLSA and WPCL, workers who prevail in wage claims may recover attorney fees, which means pursuing your claim may involve no upfront cost.

Don’t wait. Statutes of limitations can limit your recovery. Complete an online form to get started today.

FAQ: Wage & Hour Disputes in Philadelphia

What Is a Wage & Hour Dispute?

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

What Is the Minimum Wage in Pennsylvania?

Pennsylvania’s minimum wage is $7.25 per hour, matching the federal standard. The rate has not increased since 2009. Some jobs in hospitality and tipped roles have additional rules, and Philadelphia workers may also have city-level protections that affect their pay rights.

Can I Sue My Employer for Unpaid Overtime?

If you’re a non-exempt employee who didn’t receive appropriate overtime, you may be able to pursue legal action 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 in executive, administrative, professional, and outside sales roles may be exempt, but workers misclassified in those categories may still qualify for overtime. A salary alone doesn’t create an exemption. Specific duty tests must also be met.

What Is the Statute of Limitations for Filing a Wage Claim in Pennsylvania?

Under the Fair Labor Standards Act (FLSA), you generally have two years from the date of a violation to file a wage claim. For willful violations, that period may extend to three years. Under the Pennsylvania Wage Payment and Collection Law, the limitations period is generally three years.

Can I Be Retaliated Against for Filing a Wage & Hour Claim?

The law prohibits employers from retaliating against workers who assert their wage and hour rights. Retaliation includes termination, demotion, or any other adverse employment action taken because of a complaint or claim.

Can I Recover My Attorney’s Fees in a Wage Dispute?

If you prevail in a wage and hour dispute under the FLSA or the Pennsylvania WPCL, you may be entitled to collect attorney fees and court costs in addition to unpaid wages and liquidated damages.

How Does Gig Economy Work Affect My Wage Rights?

Gig work can make wage protections unclear. Workers often face classification challenges that affect pay and access to overtime and minimum wage protections. The actual working relationship, not the contract label, determines employee status under the law. If you have questions about your classification, speaking with our Philadelphia wage attorneys is a practical first step.

Are There Specific Protections for Philadelphia Workers?

Yes. Philadelphia’s Wage Theft Ordinance establishes a city-level complaint process through the Office of Worker Protections and imposes compliance obligations on employers doing business in the city. Philadelphia workers may be able to pursue claims at the city, state, and federal level simultaneously, which can expand available remedies.

What Is the Pennsylvania Wage Payment & Collection Law (WPCL)?

The WPCL gives Pennsylvania employees a direct legal remedy when an employer fails to pay earned wages, commissions, bonuses, or fringe benefits. If wages remain unpaid 30 days past the due date, the employee may recover liquidated damages of 25% of total wages owed or $500, whichever is greater. The WPCL’s statute of limitations is generally three years, and its protections generally can’t be waived by contract or severance agreement.

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